Kadant (KAI) Rating Increased 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 research report released on Wednesday morning.

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 commented on KAI. ValuEngine cut shares of Kadant from a buy rating to a hold rating in a research note on Thursday, October 11th. Barrington Research set a $112.00 target price on shares of Kadant and gave the company a buy rating in a research note on Wednesday, October 31st.

Shares of KAI stock traded up $1.58 during trading hours on Wednesday, reaching $102.69. The stock had a trading volume of 42,949 shares, compared to its average volume of 46,452. The company has a quick ratio of 1.19, a current ratio of 1.87 and a debt-to-equity ratio of 0.60. Kadant has a twelve month low of $90.65 and a twelve month high of $111.85. The stock has a market cap of $1.12 billion, a PE ratio of 22.87 and a beta of 1.29.

Kadant (NYSE:KAI) last released its quarterly earnings data on Tuesday, October 30th. The industrial products company reported $1.53 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.38 by $0.15. Kadant had a net margin of 6.91% and a return on equity of 16.12%. The business had revenue of $165.80 million for the quarter, compared to analysts’ expectations of $164.72 million. During the same quarter last year, the company earned $1.49 EPS. The company’s revenue for the quarter was up 8.5% compared to the same quarter last year. Equities analysts forecast that Kadant will post 5.03 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, November 8th. Shareholders of record on Thursday, October 11th were paid a dividend of $0.22 per share. The ex-dividend date of this dividend was Wednesday, October 10th. This represents a $0.88 annualized dividend and a yield of 0.86%. Kadant’s payout ratio is 19.60%.

In other Kadant news, CFO Michael J. Mckenney sold 5,000 shares of the firm’s stock in a transaction dated Friday, September 7th. The shares were sold at an average price of $103.00, for a total transaction of $515,000.00. Following the transaction, the chief financial officer now owns 11,624 shares of the company’s stock, valued at approximately $1,197,272. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Thomas C. Leonard sold 1,000 shares of the firm’s stock in a transaction dated Friday, September 21st. The shares were sold at an average price of $110.00, for a total transaction of $110,000.00. Following the transaction, the director now directly owns 22,100 shares in the company, valued at approximately $2,431,000. The disclosure for this sale can be found here. In the last three months, insiders have sold 10,500 shares of company stock worth $1,089,175. 5.40% of the stock is owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in the business. Ramsey Quantitative Systems bought a new position in shares of Kadant during the 3rd quarter valued at about $121,000. Milestone Group Inc. bought a new position in shares of Kadant during the 3rd quarter valued at about $216,000. PEAK6 Investments L.P. bought a new position in shares of Kadant during the 2nd quarter valued at about $207,000. Nisa Investment Advisors LLC bought a new position in shares of Kadant during the 2nd quarter valued at about $212,000. Finally, GSA Capital Partners LLP bought a new position in shares of Kadant during the 2nd quarter valued at about $236,000. 91.74% of the stock is currently owned by hedge funds and other institutional investors.

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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