Lincoln Electric Holdings Inc. (LECO) Downgraded by Zacks Investment Research to Sell
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.”
A number of other analysts have also recently weighed in on LECO. Barclays PLC restated an equal weight rating and issued a $55.00 price target on shares of Lincoln Electric Holdings in a research note on Wednesday, July 27th. Wellington Shields cut Lincoln Electric Holdings to a hold rating in a research report on Wednesday, August 24th. TheStreet upgraded Lincoln Electric Holdings from a hold rating to a buy rating in a research report 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 report on Wednesday, July 20th. Finally, Deutsche Bank AG assumed coverage on Lincoln Electric Holdings in a research report on Tuesday, September 6th. They set a hold rating and a $70.00 target price on the stock. One analyst has rated the stock with a sell rating, seven have given a hold rating and five have given a buy rating to the company. The company presently has a consensus rating of Hold and a consensus target price of $66.13.
Lincoln Electric Holdings (NASDAQ:LECO) opened at 63.31 on Monday. The stock has a market cap of $4.26 billion, a P/E ratio of 61.89 and a beta of 1.10. The firm’s 50-day moving average price is $63.01 and its 200-day moving average price is $61.07. Lincoln Electric Holdings has a 12 month low of $45.54 and a 12 month high of $65.33.
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, meeting the Zacks’ consensus estimate of $0.83. Lincoln Electric Holdings had a return on equity of 25.46% and a net margin of 3.11%. The company had revenue of $592.40 million for the quarter, compared to analysts’ expectations of $589.08 million. During the same period last year, the firm earned $0.95 earnings per share. Lincoln Electric Holdings’s quarterly revenue was down 10.9% on a year-over-year basis. On average, analysts predict that Lincoln Electric Holdings will post $3.23 earnings per share for the current 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 paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 2.04%. The ex-dividend date of this dividend is Wednesday, September 28th. Lincoln Electric Holdings’s dividend payout ratio (DPR) is 119.63%.
Several large investors have recently made changes to their positions in LECO. Johnson Financial Group Inc. raised its stake in shares of Lincoln Electric Holdings by 1.1% in the second quarter. Johnson Financial Group Inc. now owns 2,250 shares of the company’s stock valued at $133,000 after buying an additional 25 shares during the period. Calvert Investment Management Inc. raised its stake in shares of Lincoln Electric Holdings by 3.8% in the second quarter. Calvert Investment Management Inc. now owns 5,287 shares of the company’s stock valued at $312,000 after buying an additional 194 shares during the period. Advisory Services Network LLC raised its stake in shares of Lincoln Electric Holdings by 3.6% in the second quarter. Advisory Services Network LLC now owns 5,780 shares of the company’s stock valued at $341,000 after buying an additional 200 shares during the period. Commonwealth Equity Services Inc raised its stake in shares of Lincoln Electric Holdings by 2.2% in the second quarter. Commonwealth Equity Services Inc now owns 9,302 shares of the company’s stock valued at $550,000 after buying an additional 203 shares during the period. Finally, NN Investment Partners Holdings N.V. raised its stake in shares of Lincoln Electric Holdings by 1.0% in the second quarter. NN Investment Partners Holdings N.V. now owns 23,040 shares of the company’s stock valued at $1,361,000 after buying an additional 220 shares during the period. 65.28% of the stock is currently owned by institutional investors and hedge funds.
Lincoln Electric Holdings Company Profile
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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