KEMET (KEM) Lifted to Strong-Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of KEMET (NYSE:KEM) from a hold rating to a strong-buy rating in a report issued on Wednesday morning. They currently have $25.00 target price on the electronics maker’s stock.

According to Zacks, “KEMET Corporation and its subsidiaries is the world’s largest manufacturer of solid tantalum capacitors and and one of the world’s largest manufacturer of multilayer ceramic capacitors. According to industry sources, tantalum and ceramic capacitors are the two fastest growing sectors of the United States capacitor industry. Capacitors are electronic components that store, filter and regulate electrical energy and current flow and are one of the essential passive components used on circuit boards. “

KEM has been the topic of several other research reports. ValuEngine downgraded shares of KEMET from a hold rating to a sell rating in a research note on Thursday, September 6th. Macquarie initiated coverage on shares of KEMET in a research note on Monday, October 8th. They issued an outperform rating on the stock. Finally, B. Riley boosted their target price on shares of KEMET and gave the company a buy rating in a research note on Thursday, July 26th.

KEM opened at $21.74 on Wednesday. KEMET has a fifty-two week low of $13.73 and a fifty-two week high of $29.85. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.77 and a current ratio of 2.60. The firm has a market cap of $1.30 billion, a price-to-earnings ratio of 13.42 and a beta of 3.03.

KEMET (NYSE:KEM) last posted its quarterly earnings results on Tuesday, October 30th. The electronics maker reported $0.87 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.60 by $0.27. KEMET had a net margin of 7.18% and a return on equity of 27.21%. The firm had revenue of $349.20 million for the quarter, compared to the consensus estimate of $335.56 million. During the same quarter in the previous year, the company earned $0.45 earnings per share. The business’s revenue was up 15.8% compared to the same quarter last year. On average, sell-side analysts anticipate that KEMET will post 3.16 EPS for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Monday, November 26th. Stockholders of record on Friday, November 16th will be paid a $0.05 dividend. The ex-dividend date is Thursday, November 15th. This represents a $0.20 annualized dividend and a dividend yield of 0.92%.

In other news, CEO Per Olof Loof sold 10,000 shares of the business’s stock in a transaction on Friday, August 24th. The shares were sold at an average price of $25.40, for a total value of $254,000.00. Following the sale, the chief executive officer now owns 888,992 shares in the company, valued at approximately $22,580,396.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Ronald James Assaf sold 3,333 shares of the business’s stock in a transaction on Tuesday, September 4th. The shares were sold at an average price of $25.06, for a total transaction of $83,524.98. Following the completion of the sale, the senior vice president now owns 93,288 shares in the company, valued at approximately $2,337,797.28. The disclosure for this sale can be found here. Insiders sold a total of 19,999 shares of company stock worth $471,612 in the last 90 days. 2.95% of the stock is owned by corporate insiders.

Several large investors have recently modified their holdings of KEM. Crossmark Global Holdings Inc. lifted its position in KEMET by 7.0% during the 2nd quarter. Crossmark Global Holdings Inc. now owns 29,670 shares of the electronics maker’s stock worth $717,000 after buying an additional 1,930 shares in the last quarter. IFP Advisors Inc lifted its position in KEMET by 9.4% during the 2nd quarter. IFP Advisors Inc now owns 25,116 shares of the electronics maker’s stock worth $607,000 after buying an additional 2,153 shares in the last quarter. Algert Global LLC lifted its position in KEMET by 17.9% during the 2nd quarter. Algert Global LLC now owns 16,807 shares of the electronics maker’s stock worth $406,000 after buying an additional 2,546 shares in the last quarter. Smith Asset Management Group LP lifted its position in KEMET by 7.0% during the 2nd quarter. Smith Asset Management Group LP now owns 39,949 shares of the electronics maker’s stock worth $965,000 after buying an additional 2,620 shares in the last quarter. Finally, Vident Investment Advisory LLC lifted its position in KEMET by 1.5% during the 2nd quarter. Vident Investment Advisory LLC now owns 179,467 shares of the electronics maker’s stock worth $4,334,000 after buying an additional 2,691 shares in the last quarter. Institutional investors own 77.06% of the company’s stock.

About KEMET

KEMET Corporation manufactures and sells passive electronic components under the KEMET brand worldwide. The company operates in three segments: Solid Capacitors, Film and Electrolytic; and Electro-Magnetic, Sensors, and Actuators. It offers tantalum, aluminum polymer, and ceramic capacitors; film, paper, and wet aluminum electrolytic capacitors; electromagnetic interference filters; and electro-magnetic compatible materials and devices, piezo materials and actuators, and various types of sensors.

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