Kadant (NYSE:KAI) Shares Up 5.4% After Strong Earnings

Shares of Kadant Inc. (NYSE:KAI) were up 5.4% on Wednesday following a stronger than expected earnings report. The company traded as high as $343.53 and last traded at $337.82. Approximately 14,523 shares traded hands during trading, a decline of 82% from the average daily volume of 80,439 shares. The stock had previously closed at $320.55.

The industrial products company reported $2.84 earnings per share for the quarter, beating analysts’ consensus estimates of $2.43 by $0.41. Kadant had a net margin of 11.35% and a return on equity of 15.48%. The company had revenue of $271.61 million for the quarter, compared to analyst estimates of $266.38 million. During the same period last year, the firm earned $2.69 earnings per share. The firm’s revenue was up 11.2% on a year-over-year basis.

Kadant Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 7th. Shareholders of record on Thursday, October 10th will be given a $0.32 dividend. The ex-dividend date of this dividend is Thursday, October 10th. This represents a $1.28 annualized dividend and a yield of 0.38%. Kadant’s dividend payout ratio is currently 13.17%.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on KAI shares. DA Davidson raised their price objective on shares of Kadant from $290.00 to $300.00 and gave the stock a “neutral” rating in a report on Thursday, August 1st. Barrington Research reiterated an “outperform” rating and issued a $360.00 price objective on shares of Kadant in a research note on Friday, September 20th.

Insider Activity at Kadant

In other news, Director Thomas C. Leonard sold 2,000 shares of the company’s stock in a transaction dated Thursday, September 26th. The stock was sold at an average price of $337.40, for a total transaction of $674,800.00. Following the sale, the director now directly owns 4,250 shares in the company, valued at $1,433,950. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. 1.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kadant

A number of large investors have recently modified their holdings of the company. Asset Management One Co. Ltd. bought a new stake in shares of Kadant in the third quarter worth about $111,000. Cannon Global Investment Management LLC purchased a new position in Kadant during the 3rd quarter valued at $237,000. US Bancorp DE raised its stake in Kadant by 6.4% in the third quarter. US Bancorp DE now owns 1,933 shares of the industrial products company’s stock worth $653,000 after buying an additional 116 shares in the last quarter. abrdn plc lifted its position in Kadant by 1.1% during the 3rd quarter. abrdn plc now owns 71,495 shares of the industrial products company’s stock valued at $24,165,000 after acquiring an additional 796 shares during the period. Finally, Wealth Enhancement Advisory Services LLC boosted its position in shares of Kadant by 16.1% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 793 shares of the industrial products company’s stock valued at $268,000 after buying an additional 110 shares during the last quarter. 96.13% of the stock is owned by hedge funds and other institutional investors.

Kadant Stock Performance

The firm has a market capitalization of $3.99 billion, a PE ratio of 32.98 and a beta of 1.21. The company has a current ratio of 2.25, a quick ratio of 1.40 and a debt-to-equity ratio of 0.42. The business’s 50 day simple moving average is $322.41 and its two-hundred day simple moving average is $305.09.

About Kadant

Kadant Inc supplies technologies and engineered systems worldwide. It operates in three segments: Flow Control, Industrial Processing, and Material Handling. The Flow Control segment develops, manufactures, and markets fluid-handling systems and equipment, such as rotary joints, syphons, turbulator bars, expansion joints, and engineered steam and condensate systems; and doctoring, cleaning, and filtration systems and related consumables consisting of doctor systems and holders, doctor blades, cleaning shower and fabric-conditioning systems, forming systems and wear surfaces, and water-filtration systems.