Kennametal (NYSE:KMT) manufactures and supplies tooling, engineered components, and advanced materials consumed in production processes worldwide.
Insider selling during the last 30 days
Here is a table of Kennametal's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Carlos Cardose||CEO||May 8||40,000||No||168,563
|William Newlin||Director||May 2||14,560||No||71,963 shares||16.8%|
|Philip Dur||Director||May 2||14,362||No||7,191 shares||66.6%|
There have been 68,922 shares sold by insiders during the last 30 days.
Insider selling by calendar month
Here is a table of Kennametal's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 487,619 shares sold, and there have been zero shares purchased by insiders since January 2013.
Kennametal reported the fiscal 2014 third-quarter, which ended March 31, financial results on May 1 with the following highlights:
|Net income||$50.9 million|
The three insiders sold their shares after these results.
Kennametal's fiscal 2014 guidance is as follows:
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||0.15||0.06||-0.06|
|PEG (5 yr expected):||3.55||N/A||-0.90|
Kennametal is trading at a similar P/E ratio than its competitors.
There have been three different insiders selling Kennametal, and there have not been any insiders buying Kennametal during the last 30 days. All three of these insiders decreased their holdings by more than 10%. Kennametal has an insider ownership of 0.51%.
Before going short Kennametal, I would like to get a bearish confirmation from the Point & Figure chart. The main reason for the proposed short entry is the intensive insider-selling activity.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.