Kadant Inc. (KAI): Why analyst showing interest

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Kadant Inc. (NYSE:KAI) changes shares on Tuesday trading session, with a change of -0.25% or -$0.28 shares. The trading starts at $110.91 and closed at $110.97 throughout the day. The trading session low price was $109.53 and day high was $111.00 on Tuesday, August 04. After the session, the Industrials sector daily volume shifted to 88020.0 while its average volume is 77.19K. In other hand, the KAI market cap reached to $1.29B. While, its current target price is $103.50.

On March 19, 2020, BRIEF-Kadant Believes Impact From COVID-19 To Its Business Is Temporary. According to the news reported on Reuters, * KADANT INC – BELIEVE IMPACT FROM COVID-19 TO OUR BUSINESS IS TEMPORARY

Checking out the performance report which defines the increase or decrease of prices for a specific period. For the last 5 trading sessions, its performance is down -3.02% and up 8.79% for month. Its quarterly performance was 36.33% above, while its half year performance is down -0.98%. KAI yearly performance stood at positive 33.22% and rise 5.08% for year-to-date. Current recommendation for Kadant Inc. is 2.60.

Earnings per share or EPS is an important financial measure, which defines the profitability of a company. KAI EPS (TTM) for 12-month is 4.26. EPS for this year is -14.10%, while for the next year its value is 5.12. Sales growth for the current quarter is 3.25 while its EPS Q/Q reached 13.70%. It has an EPS of 12.20% up for past five years and for the next five years will be up 8.00%.

Let’s take a look on the analyst recommendations on KAI for the current month and previous month. For the current month, 1 of 5 analysts recommend stock as Buy while 0 as Sell, 0 as overweight, 0 as underweight and 4 as Hold. As compared with the previous month ratings, 0 analysts participate in stock recommendation. Out of 0, 0 rated it sell, 0 rated it as Buy and 0 as Hold Ratings. On the other hand, target price ranges from $102.00 – $105.00. Average target price for KAI was reached at $103.50.

Wasatch Advisors Inc, Blackrock Inc. and Handelsbanken Fonder AB are the top three holders in Kadant Inc. (KAI) stock. On Mar 30, 2020, Wasatch Advisors Inc has 1.6 million shares which valued 119.68 million. On Mar 30, 2020, Blackrock Inc. owned 0.97 million shares which valued at 72.66 million. On Mar 30, 2020, Handelsbanken Fonder AB has a total of 0.73 million shares which valued at 54.2 million. In the end, Handelsbanken Fonder AB have 6.33% shares outstanding of Kadant Inc. (KAI) on Mar 30, 2020. The insider ownership moved to 2.00% and institutional holding shifted to 1.00%.

The company posted an EPS (TTM) of 4.26. According to the most recent quarter report on (Sep 2020), 5 analysts estimated an average EPS of 0.97, while 1.41 EPS posted a year ago period. Analyst Estimated EPS for KAI published in the report was $0.9 – $1.04 during the same period. Comparing with last year, the average estimated EPS was 1.41 which is higher than 1.06 which was posted for recent quarter EPS.

A brief look on simple moving average (SMA) that determines the market price can impact a market. The SMA for KAI rise 15.98% for period of 200 days. SMA for 50 days was 5.06% which is showing green signal, while SMA-20 was -1.46%. The moving average value for Kadant Inc. (KAI) is 93.71 and 107.04 for 200 and 50 days respectively.

Let’s take a look on the insider transactions, in which multiple shareholders are showing interest in KAI stock. On May 21, Langevin Eric T, Executive Vice President & COO, sold 1,497 trading shares at the cost of $94.43, which valued at 0.14 million. On May 20, Langevin Eric T, Executive Vice President & COO, sold 5,100 shares at the cost of $94.36, with total shares of 52,239. On May 19, Langevin Eric T, Executive Vice President & COO, sold 874 shares at the cost of 92.56. After this transaction, Langevin Eric T total shares reached to 52,239 which valued at 80898.0.