ESAB (NYSE:ESAB) Shares Down 6.9% – What’s Next?

Shares of ESAB Corporation (NYSE:ESAB) were down 6.9% during mid-day trading on Wednesday . The company traded as low as $86.91 and last traded at $87.50. 296,780 shares traded hands during mid-day trading, a decline of 52% from the average session volume of 620,603 shares. The stock had previously closed at $94.02.

Wall Street Analysts Forecast Growth

ESAB has been the topic of several analyst reports. Roth Capital lifted their target price on shares of ESAB from $142.00 to $151.00 and gave the stock a “buy” rating in a research note on Tuesday. Oppenheimer reissued an “outperform” rating and set a $140.00 price target on shares of ESAB in a research report on Tuesday, April 14th. Weiss Ratings downgraded ESAB from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, April 27th. Jefferies Financial Group restated a “buy” rating and issued a $130.00 price target (down from $150.00) on shares of ESAB in a research note on Tuesday, March 31st. Finally, DA Davidson initiated coverage on shares of ESAB in a research report on Monday, June 15th. They issued a “buy” rating and a $130.00 target price for the company. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $139.50.

ESAB Stock Performance

The firm has a market cap of $5.33 billion, a PE ratio of 25.93, a price-to-earnings-growth ratio of 1.78 and a beta of 1.17. 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 business has a 50 day simple moving average of $94.72 and a two-hundred day simple moving average of $106.65.

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

ESAB Increases Dividend

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

Institutional Investors Weigh In On ESAB

A number of large investors have recently modified their holdings of the business. FNY Investment Advisers LLC purchased a new position in shares of ESAB in the third quarter worth $30,000. Los Angeles Capital Management LLC acquired a new stake in ESAB in the fourth quarter valued at approximately $33,000. Northwestern Mutual Wealth Management Co. lifted 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 buying an additional 174 shares in the last quarter. Smartleaf Asset Management LLC lifted its holdings in ESAB by 259.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 381 shares of the company’s stock valued at $43,000 after purchasing an additional 275 shares in the last quarter. Finally, Global Retirement Partners LLC boosted its holdings in shares of ESAB by 3,023.1% during the 4th 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 last quarter. 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.