KEMET (KEM) Trading Up 16.3% After Earnings Beat

KEMET Co. (NYSE:KEM) was up 16.3% during trading on Thursday following a stronger than expected earnings report. The company traded as high as $19.43 and last traded at $19.29. Approximately 5,309,333 shares traded hands during mid-day trading, an increase of 369% from the average daily volume of 1,130,937 shares. The stock had previously closed at $16.58.

The electronics maker reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.97 by $0.08. The firm had revenue of $355.79 million during the quarter, compared to the consensus estimate of $341.19 million. KEMET had a return on equity of 32.59% and a net margin of 8.59%. The firm’s revenue for the quarter was up 11.9% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.45 earnings per share.

The company also recently announced a quarterly dividend, which will be paid on Monday, June 10th. Shareholders of record on Thursday, May 30th will be given a $0.05 dividend. The ex-dividend date of this dividend is Wednesday, May 29th. This represents a $0.20 dividend on an annualized basis and a yield of 1.10%. KEMET’s dividend payout ratio (DPR) is 12.35%.

A number of research firms have weighed in on KEM. Zacks Investment Research downgraded KEMET from a “hold” rating to a “sell” rating in a research report on Wednesday, April 3rd. B. Riley restated a “buy” rating and issued a $26.00 target price (up from $24.00) on shares of KEMET in a research report on Thursday, May 9th. Finally, ValuEngine upgraded KEMET from a “sell” rating to a “hold” rating in a research report on Monday, April 1st.

In other news, SVP Ronald James Assaf sold 3,333 shares of the stock in a transaction on Friday, March 1st. The stock was sold at an average price of $19.29, for a total transaction of $64,293.57. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Shignori Oyama sold 30,000 shares of the stock in a transaction on Tuesday, February 19th. The shares were sold at an average price of $18.69, for a total value of $560,700.00. The disclosure for this sale can be found here. Insiders have sold a total of 40,000 shares of company stock valued at $745,033 in the last quarter. Insiders own 2.95% of the company’s stock.

Large investors have recently made changes to their positions in the company. IFP Advisors Inc acquired a new stake in shares of KEMET during the 4th quarter valued at $35,000. Valeo Financial Advisors LLC acquired a new stake in shares of KEMET during the 1st quarter valued at $38,000. Nisa Investment Advisors LLC lifted its position in shares of KEMET by 555.6% during the 1st quarter. Nisa Investment Advisors LLC now owns 2,360 shares of the electronics maker’s stock valued at $40,000 after acquiring an additional 2,000 shares during the last quarter. Bank of Montreal Can lifted its position in shares of KEMET by 51.0% during the 4th quarter. Bank of Montreal Can now owns 2,550 shares of the electronics maker’s stock valued at $44,000 after acquiring an additional 861 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its position in shares of KEMET by 249.7% during the 4th quarter. PNC Financial Services Group Inc. now owns 4,417 shares of the electronics maker’s stock valued at $78,000 after acquiring an additional 3,154 shares during the last quarter. Institutional investors own 81.25% of the company’s stock.

The stock has a market cap of $1.11 billion, a P/E ratio of 11.20 and a beta of 2.63. The company has a quick ratio of 1.54, a current ratio of 2.39 and a debt-to-equity ratio of 0.51.

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About KEMET (NYSE:KEM)

KEMET Corporation manufactures and sells passive electronic components under the KEMET brand worldwide. The company operates in three segments: Solid Capacitors, Film and Electrolytic; and Electro-Magnetic, Sensors, and Actuators. It offers tantalum, aluminum polymer, and ceramic capacitors; film, paper, and wet aluminum electrolytic capacitors; electromagnetic interference filters; and electro-magnetic compatible materials and devices, piezo materials and actuators, and various types of sensors.

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