Kadant Inc. stock trades under the ticker KAI & has shown recent bullishness that traders & investors should take a closer look into.
KAI stock closed at $202.22/share on 3/3/2022.
Kadant Inc. KAI Stock’s Technicals Broken Down
KAI Stock Price: $202.22
10 Day Moving Average: $195.31
50 Day Moving Average: $210.62
200 Day Moving Average: $203.34
RSI: 49.44
MACD: -4.52
Today, KAI stock completed a bullish MACD crossover, while breaking out above its 10 day moving average, closing just below their 200 day moving average.
With ~0.5% between their price & the 200 Day MA & a neutral RSI, KAI stock looks set to continue climbing higher on solid momentum.
They have traded at above average volume levels since the beginning of 2022 compared to the year prior.
They will need to break out above $204.50’s resistance level, before testing $209.89.
Kadant Inc. KAI Stock As A Long-Term Investment
Long-term oriented investors will find KAI stock’s P/E (ttm) to be appropriate at 26.4, but they may find their P/B (mrq) to be a bit rich at 3.91.
Their Quarterly Revenue Growth Y-o-Y is 29.7% with 49.7% Quarterly Earnings Growth Y-o-Y.
KAI’s balance sheet will require a more detailed examination, as they have $94.2M in Total Cash (mrq), and Total Debt (mrq) of $269.5M.
They offer a modest 0.51% dividend yield, which appears to be very safe as their payout ratio is only 13%.
97.9% of KAI stock’s total outstanding share float is owned by institutional investors.
Kadant Inc. KAI Stock As A Short-Term Trade Using Options
Traders can use options to take advantage of KAI stock’s current momentum, while also hedging against volatility in the broader markets.
I am looking at the contracts with the 3/18 expiration date.
The $180 & $200 calls are the only ones with open interest, and both are extremely illiquid with under 10 contracts at each strike price.
For puts, only the $200 & $195 strike priced contracts have open interest, with 1 contract per strike price.
Tying It All Together
Overall, KAI stock has many interesting attributes that traders & investors are sure to be interested in learning more about.
They offer a modest, but very secure dividend yield, and have fair valuation metrics, which likely explains the extremely high levels of institutional ownership.
Traders with a short-term focus will like their current momentum pace, but may be disappointed at how illiquid their options are for the 3/18 expiration date.
KAI stock is worth taking a closer look into, regardless of your trading style.
*** I DO NOT OWN SHARES OF KAI STOCK ***