ESAB (NYSE:ESAB) Downgraded by Zacks Research to Hold

Key Points

• ESAB has been downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating, impacting investor sentiment.
• Despite the downgrade, five research analysts still rate ESAB as a buy with a consensus price target of $137.88.
• Shares of ESAB traded at $112.24 after a decline, reflecting ongoing volatility in the company's stock performance.

ESAB (NYSE:ESAB - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Several other research firms have also commented on ESAB. Robert W. Baird set a $143.00 price target on shares of ESAB in a research report on Friday, May 2nd. JPMorgan Chase & Co. reduced their target price on ESAB from $137.00 to $125.00 and set an "overweight" rating on the stock in a research report on Thursday, August 7th. Evercore ISI increased their price target on ESAB from $120.00 to $125.00 and gave the stock an "in-line" rating in a report on Monday, May 19th. Oppenheimer cut their price objective on ESAB from $144.00 to $142.00 and set an "outperform" rating for the company in a research report on Thursday, August 7th. Finally, Stifel Nicolaus upgraded shares of ESAB from a "hold" rating to a "buy" rating and set a $141.00 price objective on the stock in a report on Thursday, August 7th. Five research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, ESAB has a consensus rating of "Moderate Buy" and a consensus price target of $137.88.

ESAB Price Performance

Shares of ESAB stock traded down $1.0750 during trading hours on Monday, reaching $112.2350. 8,164 shares of the company's stock were exchanged, compared to its average volume of 318,127. The company has a market capitalization of $6.81 billion, a P/E ratio of 26.74, a price-to-earnings-growth ratio of 2.63 and a beta of 1.27. The company has a quick ratio of 1.26, a current ratio of 1.95 and a debt-to-equity ratio of 0.50. ESAB has a 1 year low of $93.15 and a 1 year high of $135.97. The business has a fifty day moving average of $123.05 and a two-hundred day moving average of $121.87.

ESAB (NYSE:ESAB - Get Free Report) last issued its earnings results 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 company 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 firm's quarterly revenue was up 1.3% on a year-over-year basis. During the same period in the prior year, the business earned $1.32 EPS. As a group, research analysts predict that ESAB will post 5.16 earnings per share for the current fiscal year.

Insider Activity at ESAB

In other news, insider Olivier Biebuyck sold 1,440 shares of the firm's stock in a transaction 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 transaction, the insider owned 14,989 shares of the company's stock, valued at approximately $2,000,881.61. This trade represents a 8.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Rhonda L. Jordan sold 4,067 shares of the company's stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $113.05, for a total transaction of $459,774.35. The disclosure for this sale can be found here. Insiders sold 7,007 shares of company stock worth $841,630 in the last 90 days. 7.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ESAB

A number of large investors have recently modified their holdings of the stock. Bessemer Group Inc. boosted its holdings in ESAB by 3.5% in the 1st quarter. Bessemer Group Inc. now owns 14,844 shares of the company's stock worth $1,729,000 after acquiring an additional 506 shares during the period. GAMMA Investing LLC boosted its stake in shares of ESAB by 37.7% in the first quarter. GAMMA Investing LLC now owns 756 shares of the company's stock valued at $88,000 after purchasing an additional 207 shares during the period. Janney Montgomery Scott LLC acquired a new stake in ESAB during the 1st quarter valued at $590,000. Cetera Investment Advisers increased its stake in ESAB by 57.2% during the 1st quarter. Cetera Investment Advisers now owns 23,666 shares of the company's stock worth $2,757,000 after buying an additional 8,610 shares during the period. Finally, LPL Financial LLC lifted its holdings in ESAB by 38.3% in the 1st quarter. LPL Financial LLC now owns 61,466 shares of the company's stock worth $7,161,000 after buying an additional 17,027 shares in the last quarter. Institutional investors and hedge funds own 91.13% of the company's stock.

ESAB Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.