ESAB (NYSE:ESAB) Stock Price Down 5.6% – What’s Next?

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

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Weiss Ratings downgraded ESAB from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, April 27th. Oppenheimer dropped their target price on shares of ESAB from $140.00 to $135.00 and set an “outperform” rating on the stock in a research report on Tuesday. Stifel Nicolaus reduced their target price on ESAB from $141.00 to $137.00 and set a “buy” rating for the company in a research note on Monday. JPMorgan Chase & Co. reduced their price target on shares of ESAB from $148.00 to $135.00 and set an “overweight” rating for the company in a research report on Friday, April 10th. Finally, Roth Capital boosted their price objective on ESAB from $142.00 to $151.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $138.38.

ESAB Price Performance

The company has a debt-to-equity ratio of 0.91, a quick ratio of 2.26 and a current ratio of 2.97. The stock has a market capitalization of $5.14 billion, a PE ratio of 24.95, a price-to-earnings-growth ratio of 1.54 and a beta of 1.17. The stock’s 50 day moving average is $92.41 and its two-hundred day moving average is $104.80.

ESAB (NYSE:ESAB) last posted its quarterly earnings data 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 return on equity of 15.04% and a net margin of 7.11%.The firm had revenue of $745.60 million for the quarter, compared to analysts’ expectations of $706.74 million. During the same quarter last year, the firm posted $1.25 earnings per share. ESAB’s quarterly revenue was up 10.0% on a year-over-year basis. On average, equities analysts anticipate that ESAB Corporation will post 5.75 EPS for the current fiscal year.

ESAB Increases Dividend

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ESAB. T. Rowe Price Investment Management Inc. grew its holdings in shares of ESAB by 0.6% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 8,006,238 shares of the company’s stock worth $894,457,000 after buying an additional 45,841 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of ESAB by 11.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 5,852,692 shares of the company’s stock worth $653,864,000 after buying an additional 613,327 shares in the last quarter. Durable Capital Partners LP boosted its position in ESAB by 40.5% during the third quarter. Durable Capital Partners LP now owns 1,945,854 shares of the company’s stock worth $217,430,000 after acquiring an additional 560,678 shares during the last quarter. Geode Capital Management LLC boosted its position in ESAB by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 1,318,269 shares of the company’s stock worth $147,300,000 after acquiring an additional 16,466 shares during the last quarter. Finally, Bessemer Group Inc. grew its stake in ESAB by 16.3% during the 1st quarter. Bessemer Group Inc. now owns 1,225,702 shares of the company’s stock valued at $118,475,000 after acquiring an additional 171,926 shares in the last quarter. Hedge funds and other 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.