ESAB Corporation (NYSE:ESAB) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• ESAB Corporation has received a consensus rating of “Moderate Buy” from analysts, with two holding and six buying ratings, and an average 12-month target price of $140.38.
• Insider transactions indicate significant activity, with Olivier Biebuyck and Rhonda L. Jordan selling shares, reducing their ownership stakes by 8.76% and 4.22%, respectively.
• The company reported earnings of $1.36 per share, surpassing expectations, and has seen a 1.3% year-over-year revenue increase to $715.59 million.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the eight analysts that are presently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The average 12 month target price among brokers that have updated their coverage on the stock in the last year is $140.3750.

ESAB has been the subject of several recent research reports. Robert W. Baird set a $143.00 price objective on ESAB in a research note on Friday, May 2nd. Evercore ISI boosted their target price on ESAB from $120.00 to $125.00 and gave the stock an "in-line" rating in a research note on Monday, May 19th. Zacks Research cut ESAB from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 18th. Stifel Nicolaus upgraded ESAB from a "hold" rating to a "buy" rating and set a $141.00 target price for the company in a research note on Thursday, August 7th. Finally, Loop Capital upgraded ESAB from a "hold" rating to a "buy" rating and boosted their price objective for the company from $130.00 to $140.00 in a research note on Friday, August 22nd.

Insider Buying and Selling

In other ESAB news, insider Olivier Biebuyck sold 1,440 shares of the business's stock in a transaction that occurred on Thursday, July 31st. The stock was sold at an average price of $133.49, for a total value of $192,225.60. Following the completion of the sale, the insider owned 14,989 shares in the company, valued at approximately $2,000,881.61. The trade was a 8.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Rhonda L. Jordan sold 4,067 shares of the business's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $113.05, for a total value of $459,774.35. The disclosure for this sale can be found here. In the last quarter, insiders sold 7,007 shares of company stock valued at $841,630. 7.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of ESAB. Caitong International Asset Management Co. Ltd acquired a new position in shares of ESAB in the first quarter valued at approximately $33,000. First Horizon Advisors Inc. grew its holdings in ESAB by 204.8% during the first quarter. First Horizon Advisors Inc. now owns 320 shares of the company's stock worth $37,000 after acquiring an additional 215 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in ESAB by 109.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company's stock worth $40,000 after acquiring an additional 174 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in ESAB by 706.7% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 363 shares of the company's stock worth $42,000 after acquiring an additional 318 shares during the period. Finally, Kapitalo Investimentos Ltda acquired a new position in ESAB during the fourth quarter worth $47,000. Institutional investors and hedge funds own 91.13% of the company's stock.

ESAB Stock Performance

Shares of ESAB opened at $117.52 on Wednesday. The stock has a 50-day simple moving average of $122.18 and a 200-day simple moving average of $121.62. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.26 and a current ratio of 1.95. The stock has a market capitalization of $7.13 billion, a PE ratio of 28.11, a PEG ratio of 2.76 and a beta of 1.27. ESAB has a 1 year low of $93.15 and a 1 year high of $135.97.

ESAB (NYSE:ESAB - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $1.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.34 by $0.02. The business had revenue of $715.59 million during the quarter, compared to analysts' expectations of $670.80 million. ESAB had a return on equity of 16.32% and a net margin of 9.36%.The business's quarterly revenue was up 1.3% compared to the same quarter last year. During the same quarter last year, the business posted $1.32 EPS. On average, analysts predict that ESAB will post 5.16 earnings per share for the current fiscal year.

About ESAB

ESAB Corporation engages in the formulation, development, manufacture, and supply of consumable products and equipment for use in cutting, joining, automated welding, and gas control equipment. Its comprehensive range of welding consumables includes electrodes, cored and solid wires, and fluxes using a range of specialty and other materials; and cutting consumables comprising electrodes, nozzles, shields, and tips.

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