Kadant (KAI) Raised 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 report published 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) “

KAI has been the topic of a number of other reports. ValuEngine downgraded 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 price objective 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 on Wednesday, hitting $102.69. The stock had a trading volume of 42,949 shares, compared to its average volume of 46,452. The company has a market capitalization of $1.12 billion, a PE ratio of 22.87 and a beta of 1.29. The company has a current ratio of 1.87, a quick ratio of 1.19 and a debt-to-equity ratio of 0.60. Kadant has a 52-week low of $90.65 and a 52-week high of $111.85.

Kadant (NYSE:KAI) last posted its quarterly earnings data on Tuesday, October 30th. The industrial products company reported $1.53 EPS for the quarter, beating 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 firm had revenue of $165.80 million for the quarter, compared to the consensus estimate of $164.72 million. During the same period in the prior year, the firm posted $1.49 EPS. The firm’s revenue was up 8.5% compared to the same quarter last year. Equities research analysts predict that Kadant will post 5.03 EPS for the current year.

The business also recently disclosed 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 was Wednesday, October 10th. This represents a $0.88 dividend on an annualized basis and a yield of 0.86%. Kadant’s dividend payout ratio (DPR) is 19.60%.

In other Kadant news, Director John M. Albertine sold 4,500 shares of the stock in a transaction on Monday, September 17th. The shares were sold at an average price of $103.15, for a total transaction of $464,175.00. Following the sale, the director now directly owns 10,740 shares of the company’s stock, valued at $1,107,831. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Thomas C. Leonard sold 1,000 shares of the stock in a transaction on Friday, September 21st. The stock was sold at an average price of $110.00, for a total transaction of $110,000.00. Following the sale, the director now directly owns 22,100 shares in the company, valued at $2,431,000. The disclosure for this sale can be found here. Insiders have sold a total of 10,500 shares of company stock worth $1,089,175 over the last quarter. 5.40% of the stock is currently owned by insiders.

Several large investors have recently modified their holdings of KAI. Wasatch Advisors Inc. raised its holdings in shares of Kadant by 165.9% during the third quarter. Wasatch Advisors Inc. now owns 892,526 shares of the industrial products company’s stock worth $96,259,000 after purchasing an additional 556,816 shares during the period. BTIM Corp. acquired a new stake in shares of Kadant during the second quarter worth $13,551,000. Handelsbanken Fonder AB raised its holdings in shares of Kadant by 30.3% during the second quarter. Handelsbanken Fonder AB now owns 495,000 shares of the industrial products company’s stock worth $47,594,000 after purchasing an additional 115,000 shares during the period. Millennium Management LLC raised its holdings in shares of Kadant by 844.4% during the first quarter. Millennium Management LLC now owns 76,645 shares of the industrial products company’s stock worth $7,243,000 after purchasing an additional 68,529 shares during the period. Finally, Renaissance Technologies LLC raised its holdings in shares of Kadant by 37.4% during the second quarter. Renaissance Technologies LLC now owns 240,800 shares of the industrial products company’s stock worth $23,153,000 after purchasing an additional 65,600 shares during the period. 91.74% 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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