ESAB Corporation (NYSE:ESAB) Receives $138.89 Average PT from Analysts

Key Points

• ESAB Corporation has received a consensus recommendation of "Moderate Buy" from analysts, with an average 12-month target price of $138.89.
• Insider transactions included notable sales, with Olivier Biebuyck selling 1,440 shares at an average price of $133.49, reducing his stake by 8.76%.
• ESAB declared a quarterly dividend of $0.10 per share, up from the previous $0.08, reflecting ongoing financial health and a low dividend payout ratio of 9.01%.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seven research firms that are covering the company, MarketBeat.com reports. Three investment analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $140.00.

A number of equities research analysts have issued reports on ESAB shares. Stifel Nicolaus increased their price target on ESAB from $126.00 to $141.00 and gave the company a "hold" rating in a research report on Monday, July 21st. Evercore ISI lifted their price target on ESAB from $120.00 to $125.00 and gave the stock an "in-line" rating in a research report on Monday, May 19th. Finally, Robert W. Baird set a $143.00 target price on ESAB in a report on Friday, May 2nd.

ESAB Trading Down 16.4%

Shares of NYSE ESAB traded down $21.59 during mid-day trading on Friday, reaching $110.44. 1,260,879 shares of the company's stock were exchanged, compared to its average volume of 302,076. The firm has a market capitalization of $6.69 billion, a price-to-earnings ratio of 24.98, a PEG ratio of 3.17 and a beta of 1.27. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.24 and a current ratio of 1.91. ESAB has a 52-week low of $92.86 and a 52-week high of $135.97. The company's 50-day moving average is $125.61 and its 200-day moving average is $122.71.

ESAB (NYSE:ESAB - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $1.36 EPS for the quarter, beating analysts' consensus estimates of $1.32 by $0.04. ESAB had a return on equity of 16.98% and a net margin of 9.98%. During the same quarter in the previous year, the business posted $1.32 earnings per share. The firm's revenue for the quarter was up 1.3% on a year-over-year basis. Analysts expect that ESAB will post 5.16 EPS for the current fiscal year.

ESAB Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 18th. Investors of record on Thursday, July 3rd were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.4%. This is a boost from ESAB's previous quarterly dividend of $0.08. The ex-dividend date was Thursday, July 3rd. ESAB's dividend payout ratio (DPR) is presently 9.01%.

Insider Buying and Selling

In related news, Director Rhonda L. Jordan sold 1,500 shares of ESAB stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $126.42, for a total value of $189,630.00. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Olivier Biebuyck sold 1,440 shares of ESAB stock in a transaction that occurred on Thursday, July 31st. The shares were 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. This trade represents a 8.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 4,357 shares of company stock worth $567,695. Company insiders own 7.30% of the company's stock.

Institutional Trading of ESAB

A number of institutional investors have recently bought and sold shares of the company. Durable Capital Partners LP acquired a new position in shares of ESAB in the first quarter worth $114,067,000. Champlain Investment Partners LLC raised its holdings in shares of ESAB by 42.0% in the first quarter. Champlain Investment Partners LLC now owns 1,929,099 shares of the company's stock worth $224,740,000 after acquiring an additional 570,895 shares during the last quarter. Bank of New York Mellon Corp raised its holdings in shares of ESAB by 101.5% in the first quarter. Bank of New York Mellon Corp now owns 880,729 shares of the company's stock worth $102,605,000 after acquiring an additional 443,574 shares during the last quarter. Raymond James Financial Inc. acquired a new position in ESAB in the fourth quarter valued at $52,281,000. Finally, Invesco Ltd. increased its stake in ESAB by 17.9% in the fourth quarter. Invesco Ltd. now owns 2,097,624 shares of the company's stock valued at $251,589,000 after purchasing an additional 318,018 shares during the last quarter. 91.13% of the stock is currently owned by hedge funds and other institutional investors.

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.