ESAB Corporation (NYSE:ESAB) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts have given ESAB a consensus rating of "Moderate Buy" from 11 brokerages (8 Buy, 3 Hold) with an average 12‑month price target of $137.89, though several firms have recently trimmed targets (e.g., Stifel to $138).
• ESAB reported quarterly EPS of $1.35 (beat of $0.01) with revenue up 7.5% year‑over‑year; the stock trades near $97.86, has a $5.96 billion market cap and a PE of 26.45, and analysts expect FY EPS of 5.82.
• Corporate moves include CEO Shyam Kambeyanda selling 59,404 shares (a ~37.3% reduction in his position), a quarterly dividend of $0.10 ($0.40 annual, ~0.4% yield), and roughly 91.13% institutional ownership.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) have been given a consensus rating of "Moderate Buy" by the eleven brokerages that are presently covering the company, MarketBeat Ratings reports. Three analysts have rated the stock with a hold recommendation and eight have given a buy recommendation to the company. The average 12-month price objective among analysts that have issued ratings on the stock in the last year is $137.8889.

A number of research firms recently weighed in on ESAB. Stifel Nicolaus lowered their target price on shares of ESAB from $158.00 to $138.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. Wall Street Zen lowered shares of ESAB from a "buy" rating to a "hold" rating in a report on Saturday, March 21st. Roth Mkm set a $142.00 target price on shares of ESAB in a report on Thursday, April 16th. Oppenheimer restated an "outperform" rating and issued a $140.00 target price on shares of ESAB in a report on Tuesday, April 14th. Finally, Weiss Ratings lowered shares of ESAB from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, April 27th.

ESAB Price Performance

ESAB stock opened at $97.86 on Monday. The stock has a market capitalization of $5.96 billion, a PE ratio of 26.45, a price-to-earnings-growth ratio of 1.82 and a beta of 1.24. The company's 50-day moving average is $104.65 and its 200-day moving average is $113.04. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.90 and a quick ratio of 1.17. ESAB has a 1 year low of $89.41 and a 1 year high of $137.42.

ESAB (NYSE:ESAB - Get Free Report) last released its quarterly earnings data on Friday, February 20th. The company reported $1.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.34 by $0.01. ESAB had a net margin of 7.98% and a return on equity of 15.38%. The company had revenue of $687.00 million for the quarter, compared to analysts' expectations of $687.80 million. During the same quarter in the prior year, the firm earned $1.28 EPS. The business's revenue was up 7.5% on a year-over-year basis. Equities research analysts expect that ESAB will post 5.82 EPS for the current fiscal year.

ESAB Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, April 17th. Investors of record on Thursday, April 2nd were issued a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Thursday, April 2nd. ESAB's dividend payout ratio is currently 10.81%.

Insider Buying and Selling at ESAB

In related news, CEO Shyam Kambeyanda sold 59,404 shares of the company's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $123.79, for a total value of $7,353,621.16. Following the sale, the chief executive officer owned 99,864 shares in the company, valued at $12,362,164.56. This represents a 37.30% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 7.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On ESAB

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. FNY Investment Advisers LLC purchased a new stake in ESAB in the 3rd quarter valued at about $30,000. Los Angeles Capital Management LLC purchased a new stake in ESAB in the 4th quarter valued at about $33,000. Northwestern Mutual Wealth Management Co. increased its stake in ESAB by 109.4% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company's stock valued at $40,000 after buying an additional 174 shares during the last quarter. Smartleaf Asset Management LLC increased its stake in ESAB by 259.4% in the 4th quarter. Smartleaf Asset Management LLC now owns 381 shares of the company's stock valued at $43,000 after buying an additional 275 shares during the last quarter. Finally, Global Retirement Partners LLC increased its stake in ESAB by 3,023.1% in the 4th quarter. Global Retirement Partners LLC now owns 406 shares of the company's stock valued at $45,000 after buying an additional 393 shares during the last quarter. Hedge funds and other institutional investors own 91.13% of the company's stock.

About ESAB

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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