Kadant (NYSE:KAI) Lowered to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Kadant (NYSE:KAI) from a hold rating to a sell rating in a research note published on Saturday, 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) “

A number of other brokerages also recently issued reports on KAI. ValuEngine downgraded Kadant from a hold rating to a sell rating in a research report on Thursday. Seaport Global Securities downgraded Kadant from a buy rating to a neutral rating and set a $97.09 price objective on the stock. in a research report on Thursday, May 2nd. Two analysts have rated the stock with a sell rating, one has given a hold rating and two have issued a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $103.55.

Shares of NYSE:KAI traded down $2.07 during trading on Friday, hitting $84.63. 51,167 shares of the company were exchanged, compared to its average volume of 67,654. The firm has a market cap of $968.82 million, a P/E ratio of 14.82 and a beta of 1.24. The firm’s 50 day moving average is $89.27. Kadant has a 52-week low of $76.44 and a 52-week high of $111.85. The company has a current ratio of 2.07, a quick ratio of 1.35 and a debt-to-equity ratio of 0.94.

Kadant (NYSE:KAI) last posted its earnings results on Tuesday, July 30th. The industrial products company reported $1.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.31. Kadant had a return on equity of 18.01% and a net margin of 9.50%. The firm had revenue of $177.20 million for the quarter, compared to the consensus estimate of $168.67 million. During the same quarter in the prior year, the business posted $1.07 earnings per share. The business’s quarterly revenue was up 14.4% on a year-over-year basis. On average, analysts anticipate that Kadant will post 5.31 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 8th. Shareholders of record on Thursday, July 11th will be given a dividend of $0.23 per share. The ex-dividend date of this dividend is Wednesday, July 10th. This represents a $0.92 dividend on an annualized basis and a yield of 1.09%.

In other news, insider Eric T. Langevin sold 9,723 shares of the firm’s stock in a transaction dated Tuesday, June 18th. The stock was sold at an average price of $90.65, for a total transaction of $881,389.95. Following the transaction, the insider now directly owns 55,560 shares of the company’s stock, valued at $5,036,514. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michael J. Mckenney sold 2,261 shares of the firm’s stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $86.12, for a total value of $194,717.32. Following the transaction, the insider now directly owns 17,318 shares in the company, valued at $1,491,426.16. The disclosure for this sale can be found here. Insiders have sold 91,949 shares of company stock worth $8,329,452 in the last 90 days. Company insiders own 5.50% of the company’s stock.

Large investors have recently made changes to their positions in the company. New York State Teachers Retirement System bought a new position in shares of Kadant during the first quarter valued at about $88,000. Great West Life Assurance Co. Can grew its stake in shares of Kadant by 62.8% during the fourth quarter. Great West Life Assurance Co. Can now owns 1,587 shares of the industrial products company’s stock valued at $124,000 after buying an additional 612 shares during the last quarter. SG Americas Securities LLC bought a new position in shares of Kadant during the second quarter valued at about $173,000. Legal & General Group Plc grew its stake in shares of Kadant by 12.5% during the fourth quarter. Legal & General Group Plc now owns 2,030 shares of the industrial products company’s stock valued at $165,000 after buying an additional 225 shares during the last quarter. Finally, BNP Paribas Arbitrage SA grew its stake in shares of Kadant by 2,206.1% during the first quarter. BNP Paribas Arbitrage SA now owns 2,283 shares of the industrial products company’s stock valued at $201,000 after buying an additional 2,184 shares during the last quarter. 92.70% of the stock is currently owned by hedge funds and other institutional investors.

Kadant Company Profile

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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