ESAB Corporation (ESAB) - What Are Brokerages Thinking About This Stock?

Key Points

• Analysts maintain a Moderate Buy consensus on ESAB, with six buy ratings and one hold. The average 12-month price target is $118.67, although several firms recently reduced their targets.
• ESAB shares opened at $66.99, near the lower end of their 52-week range of $62.74 to $137.42. The stock trades below both its 50-day and 200-day moving averages.
• The company’s latest quarterly revenue rose 12.9% year over year to $807.6 million, exceeding estimates, but EPS of $1.33 fell short of expectations. ESAB also pays a quarterly dividend of $0.12, representing a 0.7% yield.

ESAB Corporation (NYSE:ESAB - Get Free Report) has been given an average recommendation of "Moderate Buy" by the seven research firms that are presently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $118.67.

Several equities research analysts have recently weighed in on ESAB shares. JPMorgan Chase & Co. decreased their price target on ESAB from $125.00 to $95.00 and set an "overweight" rating for the company in a research note on Thursday, October 8th. Stifel Nicolaus set a $114.00 target price on ESAB in a report on Monday, October 19th. Weiss Ratings cut ESAB from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Roth Capital reissued a "buy" rating and set a $133.00 target price (down from $151.00) on shares of ESAB in a research report on Tuesday, September 15th. Finally, Oppenheimer lowered their price target on shares of ESAB from $135.00 to $110.00 and set an "outperform" rating for the company in a report on Wednesday.

ESAB Stock Performance

Shares of ESAB stock opened at $66.99 on Monday. The company has a quick ratio of 1.22, a current ratio of 1.96 and a debt-to-equity ratio of 0.99. ESAB has a twelve month low of $62.74 and a twelve month high of $137.42. The stock has a market cap of $4.16 billion, a price-to-earnings ratio of 24.01, a P/E/G ratio of 1.06 and a beta of 1.19. The company's fifty day moving average is $70.96 and its 200 day moving average is $85.79.

ESAB (NYSE:ESAB - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $1.33 earnings per share for the quarter, missing analysts' consensus estimates of $1.37 by ($0.04). The company had revenue of $807.63 million during the quarter, compared to analyst estimates of $755.64 million. ESAB had a net margin of 5.75% and a return on equity of 14.48%. The business's revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.36 earnings per share. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. Sell-side analysts forecast that ESAB will post 5.40 EPS for the current year.

ESAB Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 16th. Stockholders of record on Friday, October 2nd were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, October 2nd. ESAB's dividend payout ratio is currently 17.20%.

Insider Buying and Selling at ESAB

In other news, Director Rhonda L. Jordan sold 1,000 shares of the stock in a transaction on Friday, August 7th. The shares were sold at an average price of $95.00, for a total transaction of $95,000.00. Following the completion of the sale, the director directly owned 1,000 shares in the company, valued at $95,000. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 7.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ESAB

Hedge funds and other institutional investors have recently bought and sold shares of the company. Global Retirement Partners LLC bought a new stake in ESAB during the second quarter valued at $76,000. EverSource Wealth Advisors LLC grew its holdings in ESAB by 25.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 865 shares of the company's stock worth $84,000 after acquiring an additional 176 shares during the period. Ascentis Independent Advisors bought a new position in shares of ESAB in the 1st quarter worth about $105,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of ESAB in the 2nd quarter worth about $151,000. Finally, Dorato Capital Management bought a new position in shares of ESAB in the 3rd quarter worth about $105,000. Institutional investors and hedge funds own 91.13% of the company's stock.

About ESAB

ESAB Corporation NYSE: ESAB is a global provider of welding and cutting technologies. The company develops and supplies equipment, consumables, automation solutions and related products used to join, cut and process metals across industrial and commercial applications.

Its product portfolio includes welding machines, cutting systems, welding electrodes and wires, filler metals, gas-control equipment, plasma and oxyfuel technologies, and digital or automated solutions. ESAB also offers products and services designed to support fabrication, manufacturing, construction, transportation, energy and maintenance operations.

ESAB serves customers in the Americas, Europe, the Middle East, Africa and the Asia-Pacific region through a portfolio of established brands and distribution channels.

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