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

Kadant (NYSE:KAI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday, 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 equities analysts also recently weighed in on the stock. Barrington Research decreased their price target on shares of Kadant from $107.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, February 14th. Sidoti decreased their price target on shares of Kadant from $107.00 to $91.00 and set a “neutral” rating on the stock in a research note on Thursday, February 13th. DA Davidson reissued a “neutral” rating and issued a $97.00 price target on shares of Kadant in a research note on Friday, February 14th. Finally, ValuEngine raised shares of Kadant from a “sell” rating to a “hold” rating in a research note on Thursday, February 13th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $97.22.

KAI opened at $99.36 on Tuesday. The company has a quick ratio of 1.27, a current ratio of 2.03 and a debt-to-equity ratio of 0.77. The company has a market cap of $1.13 billion, a price-to-earnings ratio of 21.84 and a beta of 1.32. Kadant has a 52-week low of $77.67 and a 52-week high of $114.05. The firm’s fifty day simple moving average is $107.96 and its two-hundred day simple moving average is $95.07.

Kadant (NYSE:KAI) last posted its quarterly earnings data on Wednesday, February 12th. The industrial products company reported $1.32 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.28 by $0.04. The business had revenue of $182.70 million for the quarter, compared to the consensus estimate of $173.38 million. Kadant had a net margin of 7.39% and a return on equity of 15.56%. The company’s revenue was up 11.5% compared to the same quarter last year. During the same period last year, the firm posted $1.66 earnings per share. On average, research analysts forecast that Kadant will post 5 EPS for the current year.

In other news, Chairman Jonathan W. Painter sold 5,208 shares of the firm’s stock in a transaction dated Friday, January 17th. The shares were sold at an average price of $111.41, for a total value of $580,223.28. Following the transaction, the chairman now directly owns 31,756 shares of the company’s stock, valued at $3,537,935.96. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Thomas C. Leonard sold 2,000 shares of the firm’s stock in a transaction dated Tuesday, January 14th. The stock was sold at an average price of $110.71, for a total transaction of $221,420.00. Following the completion of the transaction, the director now directly owns 10,629 shares in the company, valued at $1,176,736.59. The disclosure for this sale can be found here. Over the last three months, insiders sold 53,587 shares of company stock worth $5,732,251. Insiders own 5.50% of the company’s stock.

A number of hedge funds have recently modified their holdings of the business. Rhumbline Advisers increased its position in shares of Kadant by 0.7% during the fourth quarter. Rhumbline Advisers now owns 26,258 shares of the industrial products company’s stock valued at $2,766,000 after acquiring an additional 178 shares during the last quarter. Janus Henderson Group PLC increased its position in shares of Kadant by 6.3% during the fourth quarter. Janus Henderson Group PLC now owns 3,076 shares of the industrial products company’s stock valued at $324,000 after acquiring an additional 182 shares during the last quarter. California State Teachers Retirement System increased its position in shares of Kadant by 1.5% during the third quarter. California State Teachers Retirement System now owns 17,124 shares of the industrial products company’s stock valued at $1,503,000 after acquiring an additional 255 shares during the last quarter. Principal Financial Group Inc. increased its position in shares of Kadant by 4.4% during the fourth quarter. Principal Financial Group Inc. now owns 6,560 shares of the industrial products company’s stock valued at $691,000 after acquiring an additional 276 shares during the last quarter. Finally, AQR Capital Management LLC increased its position in shares of Kadant by 12.7% during the fourth quarter. AQR Capital Management LLC now owns 2,676 shares of the industrial products company’s stock valued at $282,000 after acquiring an additional 302 shares during the last quarter. 97.30% of the stock is currently owned by 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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