ESAB (NYSE:ESAB) Shares Down 6.9% – Time to Sell?

ESAB Corporation (NYSE:ESAB)’s share price fell 6.9% during trading on Wednesday . The company traded as low as $86.91 and last traded at $87.50. Approximately 296,780 shares changed hands during trading, a decline of 52% from the average session volume of 620,603 shares. The stock had previously closed at $94.02.

Analysts Set New Price Targets

Several research firms have weighed in on ESAB. DA Davidson assumed coverage on ESAB in a research report on Monday, June 15th. They set a “buy” rating and a $130.00 price target on the stock. Roth Capital boosted their price objective on shares of ESAB from $142.00 to $151.00 and gave the stock a “buy” rating in a research note on Tuesday. Jefferies Financial Group reiterated a “buy” rating and issued a $130.00 target price (down from $150.00) on shares of ESAB in a research note on Tuesday, March 31st. Wall Street Zen downgraded ESAB from a “buy” rating to a “hold” rating in a research report on Saturday, March 21st. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $140.00 price objective on shares of ESAB in a research report on Tuesday, April 14th. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $139.50.

ESAB Price Performance

The business’s 50 day moving average is $94.72 and its 200-day moving average is $106.65. The company has a quick ratio of 2.26, a current ratio of 2.97 and a debt-to-equity ratio of 0.91. The firm has a market capitalization of $5.33 billion, a P/E ratio of 25.93, a PEG ratio of 1.78 and a beta of 1.17.

ESAB (NYSE:ESAB) last issued its quarterly earnings data on Thursday, May 7th. The company reported $1.31 earnings per share for the quarter, missing the consensus estimate of $1.32 by ($0.01). ESAB had a return on equity of 15.04% and a net margin of 7.11%.The business had revenue of $745.60 million during the quarter, compared to the consensus estimate of $706.74 million. During the same period in the prior year, the firm earned $1.25 EPS. The business’s revenue for the quarter was up 10.0% compared to the same quarter last year. As a group, sell-side analysts predict that ESAB Corporation will post 5.82 EPS for the current fiscal year.

ESAB Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 17th. Investors of record on Friday, July 3rd will be issued a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 0.5%. This is an increase from ESAB’s previous quarterly dividend of $0.10. The ex-dividend date is Thursday, July 2nd. ESAB’s dividend payout ratio is 14.20%.

Institutional Investors Weigh In On ESAB

Several large investors have recently modified their holdings of ESAB. FNY Investment Advisers LLC purchased a new stake in ESAB in the third quarter worth $30,000. Los Angeles Capital Management LLC purchased a new stake in ESAB in the 4th quarter worth about $33,000. Northwestern Mutual Wealth Management Co. raised its stake in ESAB by 109.4% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company’s stock valued at $40,000 after acquiring an additional 174 shares during the period. Smartleaf Asset Management LLC lifted its holdings in ESAB by 259.4% during the fourth quarter. Smartleaf Asset Management LLC now owns 381 shares of the company’s stock valued at $43,000 after purchasing an additional 275 shares during the last quarter. Finally, Global Retirement Partners LLC boosted its position in ESAB by 3,023.1% during the fourth quarter. Global Retirement Partners LLC now owns 406 shares of the company’s stock worth $45,000 after purchasing an additional 393 shares during the period. Hedge funds and other institutional investors own 91.13% of the company’s stock.

About ESAB

ESAB Corporation is a global leader in welding, cutting and gas control technologies, offering a comprehensive portfolio of equipment, consumables and automation solutions. The company’s products include welding power sources, cutting machines, torches, electrodes, filler metals and gas regulating equipment designed to meet the needs of diverse industries. ESAB serves sectors such as construction, shipbuilding, automotive, energy, infrastructure and manufacturing, providing both standard and customized solutions to enhance productivity and quality in metal fabrication and processing.

Founded in 1904 by Swedish inventor Oscar Kjellberg, ESAB pioneered the development of coated welding electrodes, laying the groundwork for modern welding practices.