KEMET (KEM) Shares Gap Up After Earnings Beat

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KEMET Co. (NYSE:KEM) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $20.61, but opened at $19.29. KEMET shares last traded at $18.71, with a volume of 68309 shares traded.

The electronics maker reported $1.05 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.97 by $0.08. KEMET had a return on equity of 32.59% and a net margin of 8.59%. The firm had revenue of $355.79 million during the quarter, compared to analyst estimates of $341.19 million. During the same period last year, the company earned $0.45 EPS. KEMET’s quarterly revenue was up 11.9% compared to the same quarter last year.

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 10th. Investors of record on Thursday, May 30th will be paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.07%. The ex-dividend date is Wednesday, May 29th. KEMET’s dividend payout ratio is currently 12.35%.

A number of equities research analysts have weighed in on KEM shares. B. Riley reaffirmed a “buy” rating and set a $26.00 target price (up from $24.00) on shares of KEMET in a research report on Thursday, May 9th. Zacks Investment Research raised KEMET from a “hold” rating to a “buy” rating and set a $21.00 price objective for the company in a report on Wednesday, February 6th. Finally, ValuEngine raised KEMET from a “sell” rating to a “hold” rating in a report on Monday, April 1st.

In related news, VP Shignori Oyama sold 30,000 shares of the company’s stock in a transaction dated Tuesday, February 19th. The stock was sold at an average price of $18.69, for a total value of $560,700.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Ronald James Assaf sold 3,333 shares of the company’s stock in a transaction dated Friday, March 1st. The stock was sold at an average price of $19.29, for a total value of $64,293.57. The disclosure for this sale can be found here. In the last three months, insiders sold 40,000 shares of company stock valued at $745,033. Insiders own 2.95% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp grew its position in KEMET by 6.8% in the third quarter. Bank of New York Mellon Corp now owns 1,072,297 shares of the electronics maker’s stock worth $19,892,000 after acquiring an additional 68,707 shares during the period. JPMorgan Chase & Co. lifted its holdings in KEMET by 61.7% in the 3rd quarter. JPMorgan Chase & Co. now owns 1,293,839 shares of the electronics maker’s stock worth $24,000,000 after buying an additional 493,904 shares in the last quarter. TIAA CREF Investment Management LLC lifted its holdings in KEMET by 62.2% in the 3rd quarter. TIAA CREF Investment Management LLC now owns 272,979 shares of the electronics maker’s stock worth $5,064,000 after buying an additional 104,715 shares in the last quarter. Legal & General Group Plc lifted its holdings in KEMET by 23.4% in the 3rd quarter. Legal & General Group Plc now owns 122,669 shares of the electronics maker’s stock worth $2,277,000 after buying an additional 23,285 shares in the last quarter. Finally, Morgan Stanley lifted its holdings in KEMET by 30.7% in the 3rd quarter. Morgan Stanley now owns 415,470 shares of the electronics maker’s stock worth $7,707,000 after buying an additional 97,696 shares in the last quarter. 81.25% of the stock is owned by institutional investors.

The company has a current ratio of 2.39, a quick ratio of 1.54 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $1.11 billion, a P/E ratio of 11.50 and a beta of 2.63.

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About KEMET (NYSE:KEM)

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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