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

Key Points

• Analyst sentiment is moderately bullish: Eight of ten brokerages rate ESAB a buy, while two recommend holding the stock. The average 12-month price target is $138.38, well above the reported share price of $87.99.
• Quarterly results were mixed: ESAB reported revenue of $807.63 million, up 12.9% year over year and above estimates, but earnings per share of $1.33 fell short of the $1.37 consensus.
• Institutional ownership remains high: Hedge funds and other institutions own 91.13% of ESAB’s shares. A company director recently sold 1,000 shares at an average price of $95, reducing her direct holdings by half.

ESAB Corporation (NYSE:ESAB - Get Free Report) has received an average rating of "Moderate Buy" from the ten brokerages that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold rating and eight have issued a buy rating on the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $138.3750.

ESAB has been the subject of several recent research reports. Roth Capital increased their target price on shares of ESAB from $142.00 to $151.00 and gave the company a "buy" rating in a research note on Tuesday, July 7th. Stifel Nicolaus decreased their price target on shares of ESAB from $141.00 to $137.00 and set a "buy" rating on the stock in a research report on Monday, July 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ESAB in a report on Friday, July 24th. Oppenheimer cut their price objective on ESAB from $140.00 to $135.00 and set an "outperform" rating for the company in a research report on Tuesday, July 21st. Finally, DA Davidson initiated coverage on ESAB in a research note on Monday, June 15th. They set a "buy" rating and a $130.00 price objective for the company.

ESAB Price Performance

NYSE:ESAB opened at $87.99 on Wednesday. The company has a quick ratio of 1.22, a current ratio of 1.96 and a debt-to-equity ratio of 0.99. The business's 50-day moving average price is $91.69 and its 200 day moving average price is $101.68. ESAB has a 52-week low of $82.18 and a 52-week high of $137.42. The firm has a market cap of $5.47 billion, a P/E ratio of 31.54, a PEG ratio of 1.67 and a beta of 1.19.

ESAB (NYSE:ESAB - Get Free Report) last issued its quarterly earnings results 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). ESAB had a net margin of 5.75% and a return on equity of 14.48%. The business had revenue of $807.63 million during the quarter, compared to analyst estimates of $755.64 million. During the same period in the previous year, the company posted $1.36 earnings per share. ESAB's revenue was up 12.9% compared to the same quarter last year. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. As a group, sell-side analysts predict that ESAB will post 5.46 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Rhonda L. Jordan sold 1,000 shares of the company's stock in a transaction on Friday, August 7th. The stock was 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 of the company's stock, valued at $95,000. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 7.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On ESAB

A number of institutional investors have recently bought and sold shares of the stock. Thrivent Financial for Lutherans lifted its stake in ESAB by 0.7% during the second quarter. Thrivent Financial for Lutherans now owns 13,417 shares of the company's stock worth $1,617,000 after purchasing an additional 95 shares during the period. Public Employees Retirement System of Ohio grew its stake in shares of ESAB by 0.5% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 19,605 shares of the company's stock valued at $2,191,000 after purchasing an additional 107 shares during the period. HB Wealth Management LLC grew its stake in shares of ESAB by 5.0% in the 1st quarter. HB Wealth Management LLC now owns 2,479 shares of the company's stock valued at $240,000 after purchasing an additional 118 shares during the period. Coldstream Capital Management Inc. raised its holdings in shares of ESAB by 5.9% in the 3rd quarter. Coldstream Capital Management Inc. now owns 2,689 shares of the company's stock worth $300,000 after buying an additional 149 shares in the last quarter. Finally, Lafayette Investments Inc. raised its holdings in shares of ESAB by 0.5% in the 4th quarter. Lafayette Investments Inc. now owns 34,266 shares of the company's stock worth $3,828,000 after buying an additional 161 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.

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