Kadant (KAI) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Kadant (NYSE:KAI) from a strong-buy rating to a hold rating in a report published on Wednesday.

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 equities analysts have also recently commented on KAI. ValuEngine cut shares of Kadant from a buy rating to a hold rating in a research note on Monday, October 2nd. Sidoti cut shares of Kadant from a buy rating to a neutral rating and set a $102.00 price target for the company. in a research note on Tuesday, October 3rd. Four research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. The company has an average rating of Hold and an average target price of $104.67.

Kadant (NYSE:KAI) traded up $1.35 during mid-day trading on Wednesday, hitting $99.20. 29,800 shares of the company were exchanged, compared to its average volume of 41,633. Kadant has a 52-week low of $56.15 and a 52-week high of $114.00. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.65 and a current ratio of 2.35. The stock has a market cap of $1,090.00, a PE ratio of 29.44 and a beta of 1.37.

Kadant (NYSE:KAI) last released its quarterly earnings results on Monday, October 30th. The industrial products company reported $1.49 EPS for the quarter, topping analysts’ consensus estimates of $1.14 by $0.35. Kadant had a net margin of 8.17% and a return on equity of 14.84%. The firm had revenue of $152.79 million during the quarter, compared to analysts’ expectations of $141.33 million. During the same period in the previous year, the company earned $0.81 EPS. The firm’s revenue for the quarter was up 44.8% compared to the same quarter last year. equities research analysts predict that Kadant will post 4.39 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, February 8th. Investors of record on Thursday, January 11th will be paid a dividend of $0.21 per share. The ex-dividend date of this dividend is Wednesday, January 10th. This represents a $0.84 dividend on an annualized basis and a dividend yield of 0.85%. Kadant’s dividend payout ratio is presently 24.93%.

In related news, VP Sandra L. Lambert sold 6,437 shares of Kadant stock in a transaction dated Wednesday, November 1st. The shares were sold at an average price of $108.66, for a total transaction of $699,444.42. Following the completion of the sale, the vice president now owns 20,942 shares in the company, valued at approximately $2,275,557.72. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Eric T. Langevin sold 700 shares of Kadant stock in a transaction dated Thursday, December 27th. The shares were sold at an average price of $100.56, for a total transaction of $70,392.00. Following the sale, the chief operating officer now owns 28,850 shares of the company’s stock, valued at approximately $2,901,156. The disclosure for this sale can be found here. Insiders have sold a total of 53,256 shares of company stock valued at $5,450,550 in the last quarter. 5.59% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company lifted its holdings in Kadant by 1.1% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 8,302 shares of the industrial products company’s stock valued at $625,000 after buying an additional 92 shares in the last quarter. Citigroup Inc. raised its holdings in shares of Kadant by 24.2% in the 2nd quarter. Citigroup Inc. now owns 1,411 shares of the industrial products company’s stock valued at $106,000 after purchasing an additional 275 shares in the last quarter. AlphaOne Investment Services LLC raised its holdings in shares of Kadant by 0.8% in the 2nd quarter. AlphaOne Investment Services LLC now owns 44,943 shares of the industrial products company’s stock valued at $3,380,000 after purchasing an additional 350 shares in the last quarter. Voya Investment Management LLC raised its holdings in shares of Kadant by 6.3% in the 2nd quarter. Voya Investment Management LLC now owns 6,861 shares of the industrial products company’s stock valued at $516,000 after purchasing an additional 408 shares in the last quarter. Finally, California Public Employees Retirement System raised its holdings in shares of Kadant by 3.0% in the 2nd quarter. California Public Employees Retirement System now owns 17,300 shares of the industrial products company’s stock valued at $1,301,000 after purchasing an additional 500 shares in the last quarter. Institutional investors own 90.63% of the company’s stock.

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Kadant Company Profile

Kadant Inc is a supplier of equipment and components used in process industries. In addition, the Company manufactures granules made from papermaking by-products. Its segments include Papermaking Systems and Wood Processing Systems. The Company has a customer base, which includes paper and oriented strand board (OSB) manufacturers.

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