Lincoln Electric Holdings Inc. (LECO) Stock Rating Lowered by Zacks Investment Research
Lincoln Electric Holdings Inc. (NASDAQ:LECO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.
According to Zacks, “Lincoln Electric remains concerned on persistent weakness in industrial production, commodity prices and slowing emerging market economies. Due to the short cycle nature of its business, management remains cautious about demand trends for 2016. Further, increase in R&D spending will impede the company's margin performance in the near term. For 2016, the company’s results will be hit by the on-going declines in the energy and heavy fabrication sectors on weak mining activity. Moreover, tough comparisons and a stronger dollar will hurt Lincoln Electric's results in the coming quarters.”
Several other analysts also recently commented on the company. TheStreet upgraded Lincoln Electric Holdings from a “hold” rating to a “buy” rating in a research note on Wednesday, August 17th. Wunderlich cut their target price on Lincoln Electric Holdings from $85.00 to $75.00 and set a “buy” rating on the stock in a research note on Wednesday, July 20th. Barclays PLC reiterated an “equal weight” rating and set a $55.00 target price on shares of Lincoln Electric Holdings in a research note on Wednesday, July 27th. Wellington Shields upgraded Lincoln Electric Holdings from a “hold” rating to a “gradually accumulate” rating in a research note on Wednesday, August 3rd. Finally, Deutsche Bank AG started coverage on Lincoln Electric Holdings in a research note on Tuesday, September 6th. They set a “hold” rating and a $70.00 target price on the stock. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $66.13.
Lincoln Electric Holdings (NASDAQ:LECO) opened at 62.42 on Monday. The stock has a market capitalization of $4.20 billion, a PE ratio of 61.02 and a beta of 1.10. Lincoln Electric Holdings has a 12 month low of $45.54 and a 12 month high of $65.33. The stock has a 50 day moving average price of $62.94 and a 200 day moving average price of $61.09.
Lincoln Electric Holdings (NASDAQ:LECO) last posted its quarterly earnings results on Monday, July 25th. The company reported $0.83 earnings per share for the quarter, hitting the consensus estimate of $0.83. The company had revenue of $592.40 million for the quarter, compared to the consensus estimate of $589.08 million. Lincoln Electric Holdings had a return on equity of 25.46% and a net margin of 3.11%. The firm’s quarterly revenue was down 10.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.95 EPS. On average, equities research analysts forecast that Lincoln Electric Holdings will post $3.23 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, October 14th. Stockholders of record on Friday, September 30th will be issued a dividend of $0.32 per share. The ex-dividend date is Wednesday, September 28th. This represents a $1.28 annualized dividend and a dividend yield of 2.05%. Lincoln Electric Holdings’s payout ratio is 119.63%.
Several institutional investors have recently added to or reduced their stakes in LECO. Vanguard Group Inc. boosted its position in Lincoln Electric Holdings by 0.8% in the second quarter. Vanguard Group Inc. now owns 4,915,908 shares of the company’s stock valued at $290,432,000 after buying an additional 40,725 shares during the last quarter. State Street Corp boosted its position in Lincoln Electric Holdings by 141.6% in the first quarter. State Street Corp now owns 4,503,670 shares of the company’s stock valued at $263,783,000 after buying an additional 2,639,676 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Lincoln Electric Holdings by 244.1% in the second quarter. JPMorgan Chase & Co. now owns 833,164 shares of the company’s stock valued at $49,223,000 after buying an additional 591,008 shares during the last quarter. Norges Bank purchased a new position in Lincoln Electric Holdings during the fourth quarter valued at $32,931,000. Finally, BTIM Corp. boosted its position in Lincoln Electric Holdings by 3.6% in the second quarter. BTIM Corp. now owns 620,754 shares of the company’s stock valued at $36,674,000 after buying an additional 21,601 shares during the last quarter. 65.28% of the stock is currently owned by hedge funds and other institutional investors.
About Lincoln Electric Holdings
Lincoln Electric Holdings, Inc a manufacturer of welding, cutting and brazing products. The Company’s welding products include arc welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes and fluxes. The Company’s operating segments include North America Welding, Europe Welding, Asia Pacific Welding, South America Welding and The Harris Products Group.
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