Kadant (KAI) Lifted to Hold at Zacks Investment Research

Zacks Investment Research upgraded shares of Kadant (NYSE:KAI) from a sell rating to a hold rating in a report issued on Thursday, Zacks.com reports.

According to Zacks, “Kadant Inc. is a leading supplier of a range of products and systems for the global papermaking and paper-recycling industries, including de-inking systems, stock-preparation equipment, water-management systems, and papermaking accessories. Through its majority-owned Thermo Fibergen subsidiary, the company also develops and commercializes composite building materials produced from natural fiber and recycled plastic. Kadant is a public subsidiary of Thermo Electron Corporation.(Press Release) “

Several other research firms have also recently issued reports on KAI. ValuEngine raised shares of Kadant from a sell rating to a hold rating in a research note on Thursday, April 4th. Barrington Research reaffirmed a buy rating and set a $110.00 price target on shares of Kadant in a research note on Tuesday, February 26th.

Kadant stock opened at $96.44 on Thursday. Kadant has a 12-month low of $76.44 and a 12-month high of $111.85. The stock has a market cap of $1.08 billion, a price-to-earnings ratio of 18.09 and a beta of 1.08. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.29 and a current ratio of 1.96.

Kadant (NYSE:KAI) last released its quarterly earnings results on Thursday, February 14th. The industrial products company reported $1.66 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.35 by $0.31. Kadant had a net margin of 9.53% and a return on equity of 17.14%. The company had revenue of $163.94 million for the quarter, compared to analysts’ expectations of $160.67 million. During the same period last year, the company earned $1.14 EPS. The firm’s revenue for the quarter was up 9.9% compared to the same quarter last year. As a group, equities research analysts expect that Kadant will post 5.31 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 7th. Shareholders of record on Tuesday, April 9th will be paid a dividend of $0.23 per share. This is a boost from Kadant’s previous quarterly dividend of $0.22. This represents a $0.92 annualized dividend and a dividend yield of 0.95%. The ex-dividend date is Monday, April 8th.

In related news, Director William P. Tully sold 1,500 shares of the firm’s stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $88.36, for a total value of $132,540.00. Following the sale, the director now directly owns 5,200 shares of the company’s stock, valued at $459,472. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 5.50% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB boosted its position in shares of Kadant by 43.2% in the fourth quarter. Handelsbanken Fonder AB now owns 770,867 shares of the industrial products company’s stock worth $62,795,000 after acquiring an additional 232,564 shares during the last quarter. Macquarie Group Ltd. boosted its position in shares of Kadant by 11.6% in the fourth quarter. Macquarie Group Ltd. now owns 704,600 shares of the industrial products company’s stock worth $57,396,000 after acquiring an additional 73,020 shares during the last quarter. Royce & Associates LP boosted its position in shares of Kadant by 17.8% in the fourth quarter. Royce & Associates LP now owns 573,285 shares of the industrial products company’s stock worth $46,700,000 after acquiring an additional 86,463 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of Kadant by 0.9% in the third quarter. Vanguard Group Inc. now owns 521,542 shares of the industrial products company’s stock worth $56,249,000 after acquiring an additional 4,865 shares during the last quarter. Finally, Vanguard Group Inc boosted its position in shares of Kadant by 0.9% in the third quarter. Vanguard Group Inc now owns 521,542 shares of the industrial products company’s stock worth $56,249,000 after acquiring an additional 4,865 shares during the last quarter. 93.35% of the stock is currently owned by institutional investors and hedge funds.

About Kadant

Kadant Inc supplies equipment and critical components used in papermaking, paper recycling, recycling and waste management, and other process industries worldwide. The company operates in two segments, Papermaking Systems and Wood Processing Systems. The Papermaking Systems segment develops, manufactures, and markets custom-engineered stock-preparation systems and equipment for the preparation of wastepaper for conversion into recycled paper and balers, as well as related equipment used in the processing of recyclable and waste materials; and fluid-handling systems and equipment used in industrial piping systems to compensate for movement, as well as to transfer fluid, power, and data.

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