ESAB (NYSE:ESAB) Stock Price Down 5.6% – Here’s Why

ESAB Corporation (NYSE:ESAB) fell 5.6% during trading on Monday . The company traded as low as $84.88 and last traded at $84.71. 405,237 shares changed hands during trading, a decline of 35% from the average session volume of 627,991 shares. The stock had previously closed at $89.78.

Wall Street Analysts Forecast Growth

ESAB has been the topic of several recent analyst reports. Jefferies Financial Group reaffirmed a “buy” rating and issued a $130.00 price target (down from $150.00) on shares of ESAB in a report on Tuesday, March 31st. Roth Capital boosted their price target on shares of ESAB from $142.00 to $151.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Weiss Ratings lowered shares of ESAB from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, April 27th. JPMorgan Chase & Co. dropped their target price on shares of ESAB from $148.00 to $135.00 and set an “overweight” rating on the stock in a report on Friday, April 10th. Finally, Oppenheimer restated an “outperform” rating and set a $140.00 price target on shares of ESAB in a report on Tuesday, April 14th. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, ESAB currently has an average rating of “Moderate Buy” and an average target price of $139.00.

ESAB Trading Down 5.6%

The business has a 50-day moving average of $92.84 and a two-hundred day moving average of $105.20. 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 $5.16 billion, a price-to-earnings ratio of 25.07, a P/E/G ratio of 1.65 and a beta of 1.17.

ESAB (NYSE:ESAB) last issued its earnings results on Thursday, May 7th. The company reported $1.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.32 by ($0.01). ESAB had a return on equity of 15.04% and a net margin of 7.11%.The company had revenue of $745.60 million during the quarter, compared to analyst estimates of $706.74 million. During the same period in the previous year, the company posted $1.25 earnings per share. The company’s quarterly revenue was up 10.0% on a year-over-year basis. Research analysts predict that ESAB Corporation will post 5.79 EPS for the current fiscal year.

ESAB Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 17th. Investors of record on Friday, July 3rd were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.6%. This is a boost from ESAB’s previous quarterly dividend of $0.10. The ex-dividend date of this dividend was Thursday, July 2nd. ESAB’s payout ratio is presently 14.20%.

Hedge Funds Weigh In On ESAB

Institutional investors have recently modified their holdings of the business. Hudson Value Partners LLC increased its position in shares of ESAB by 19.9% during the second quarter. Hudson Value Partners LLC now owns 65,729 shares of the company’s stock worth $6,483,000 after acquiring an additional 10,915 shares in the last quarter. Defender Capital LLC. increased its holdings in ESAB by 23.2% during the second quarter. Defender Capital LLC. now owns 36,564 shares of the company’s stock worth $3,606,000 after buying an additional 6,877 shares during the last quarter. Dynamic Advisor Solutions LLC raised its holdings in shares of ESAB by 3.0% in the 2nd quarter. Dynamic Advisor Solutions LLC now owns 11,137 shares of the company’s stock valued at $1,098,000 after purchasing an additional 328 shares during the period. Moody National Bank Trust Division boosted its stake in shares of ESAB by 21.3% during the 2nd quarter. Moody National Bank Trust Division now owns 3,076 shares of the company’s stock worth $303,000 after acquiring an additional 540 shares during the period. Finally, Confluence Investment Management LLC boosted its holdings in shares of ESAB by 24.5% during the 2nd quarter. Confluence Investment Management LLC now owns 14,709 shares of the company’s stock worth $1,451,000 after buying an additional 2,892 shares during the period. Institutional investors own 91.13% of the company’s stock.

ESAB Company Profile

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.