Kennametal Stock Is Up 50%. Here's What a $181 Million Fund Sale Could Mean

Brandes Investment Partners reduced its stake in Kennametal (NYSE:KMT) by 4,965,772 shares in the first quarter, an estimated $180.99 million trade based on quarterly average pricing, according to a May 15, 2026, SEC filing.

What happened

According to an SEC filing dated May 15, 2026, Brandes Investment Partners, LP sold 4,965,772 shares of Kennametal in the first quarter. The estimated transaction value is $180.99 million, calculated using the average closing price for the quarter. Following the sale, the fund’s position in Kennametal stood at 5,265,280 shares, with a quarter-end value of $190.23 million. The position’s value fell by $100.43 million over the quarter, reflecting both share sales and price changes.

What else to know

• Brandes reduced its Kennametal position, which now accounts for 1.35% of its $14.13 billion 13F AUM.
• Top holdings after the filing:
  • NYSE:CAE: $413.54 million (2.9% of AUM)
  • NYSE:EMBJ: $338.47 million (2.4% of AUM)
  • NASDAQ:DOX: $303.79 million (2.2% of AUM)
  • NASDAQ:GRFS: $291.40 million (2.1% of AUM)
  • NYSE:C: $277.23 million (2.0% of AUM)
• As of Friday, Kennametal shares were priced at $32.80, up 50% over the past year and well outperforming the S&P 500, which is instead up about 28%.

Company overview

Company snapshot

• Kennametal offers metal cutting tools, wear-resistant components, tungsten carbide powders, and engineered solutions for industries including aerospace, energy, transportation, and general engineering.
• The firm generates revenue through the sale of standard and custom products, as well as value-added services and support, leveraging both direct sales and distributor networks globally.
• It serves manufacturers of transportation vehicles, aerospace and energy components, machine tools, and industrial equipment, targeting sectors requiring high-performance materials and precision tooling.

Kennametal is a global manufacturer specializing in advanced materials and tooling solutions, with a focus on high-performance applications in demanding industrial environments. The company's strategy centers on product innovation, material science expertise, and a diversified customer base across multiple sectors. Kennametal's competitive advantage stems from its broad product portfolio, established brands, and technical support capabilities, enabling it to address complex engineering challenges for industrial clients worldwide.

What this transaction means for investors

This sale looks more like a portfolio rebalancing after a major run than a bearish call on Kennametal's fundamentals.

The industrial tooling company has become quite a strong performer in the sector, with shares climbing roughly 50% over the past year as improving manufacturing demand collided with an unusually strong tungsten market. That backdrop helped Kennametal deliver a standout fiscal third quarter (as reported earlier this month), with revenue rising 22% year over year to $593 million while adjusted earnings per share jumped 65% to $0.77. Management also raised its full-year sales and earnings outlook.

CEO Sanjay Chowbey said results exceeded the high end of guidance, citing "the unprecedented rise in tungsten pricing and stronger volume." He added that the company continues to pursue market share gains while managing its tungsten supply chain and positioning for long-term value creation.

That said, investors should still keep an eye on working capital needs, which have increased as tungsten prices surged. In response, Kennametal recently added $700 million of liquidity through a new term loan and expanded credit facility while extending debt maturities to 2036.

Citigroup is an advertising partner of Motley Fool Money. Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amdocs. The Motley Fool recommends Embraer. The Motley Fool has a disclosure policy.