Kadant (NYSE:KAI) Trading Up 5.4% on Better-Than-Expected Earnings

Kadant Inc. (NYSE:KAI)’s share price shot up 5.4% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $343.53 and last traded at $337.82. 14,523 shares traded hands during trading, a decline of 82% from the average session volume of 80,439 shares. The stock had previously closed at $320.55.

The industrial products company reported $2.84 EPS for the quarter, topping the consensus estimate of $2.43 by $0.41. The firm had revenue of $271.61 million for the quarter, compared to the consensus estimate of $266.38 million. Kadant had a net margin of 11.35% and a return on equity of 15.48%. The business’s quarterly revenue was up 11.2% on a year-over-year basis. During the same period last year, the company posted $2.69 EPS.

Kadant Dividend Announcement

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

Wall Street Analyst Weigh In

KAI has been the subject of a number of research reports. Barrington Research reiterated an “outperform” rating and set a $360.00 price objective on shares of Kadant in a report on Wednesday. DA Davidson lifted their price objective on shares of Kadant from $290.00 to $300.00 and gave the company a “neutral” rating in a report on Thursday, August 1st.

Insider Activity

In other Kadant news, Director Thomas C. Leonard sold 2,000 shares of the business’s stock in a transaction that occurred on Thursday, September 26th. The stock was sold at an average price of $337.40, for a total transaction of $674,800.00. Following the transaction, the director now owns 4,250 shares of the company’s stock, valued at $1,433,950. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 1.40% of the stock is owned by corporate insiders.

Institutional Trading of Kadant

Hedge funds have recently added to or reduced their stakes in the company. Capital World Investors acquired a new position in shares of Kadant during the 1st quarter worth approximately $92,993,000. Susquehanna Fundamental Investments LLC acquired a new position in Kadant in the 1st quarter valued at $670,000. SG Americas Securities LLC lifted its position in shares of Kadant by 624.3% during the 1st quarter. SG Americas Securities LLC now owns 4,259 shares of the industrial products company’s stock valued at $1,397,000 after acquiring an additional 3,671 shares during the period. Janus Henderson Group PLC grew its holdings in shares of Kadant by 15.1% during the 1st quarter. Janus Henderson Group PLC now owns 22,324 shares of the industrial products company’s stock worth $7,321,000 after purchasing an additional 2,923 shares in the last quarter. Finally, Vanguard Group Inc. grew its holdings in shares of Kadant by 46.3% during the 1st quarter. Vanguard Group Inc. now owns 967,638 shares of the industrial products company’s stock worth $317,482,000 after purchasing an additional 306,352 shares in the last quarter. 96.13% of the stock is owned by institutional investors and hedge funds.

Kadant Stock Down 0.8 %

The stock has a 50-day moving average of $323.33 and a 200 day moving average of $305.50. The company has a debt-to-equity ratio of 0.42, a current ratio of 2.25 and a quick ratio of 1.40. The company has a market cap of $3.91 billion, a P/E ratio of 34.27 and a beta of 1.21.

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.