ESAB (NYSE:ESAB) Reaches New 1-Year Low - Should You Sell?

Key Points

• ESAB shares fell to a new 52-week low of $82.15, down 3.2%, with the stock trading well below its 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a generally positive outlook: eight rate ESAB a Buy and two a Hold, producing a “Moderate Buy” consensus and an average price target of $138.38.
• ESAB’s latest quarterly results were mixed: revenue rose 12.9% year over year to $807.6 million and exceeded estimates, but adjusted earnings of $1.33 per share missed consensus by $0.04.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $82.15 and last traded at $82.25, with a volume of 650673 shares traded. The stock had previously closed at $84.81.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Roth Capital raised 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. DA Davidson initiated coverage on shares of ESAB in a research note on Monday, June 15th. They set a "buy" rating and a $130.00 price target for the company. Stifel Nicolaus cut their price objective on shares of ESAB from $141.00 to $137.00 and set a "buy" rating on the stock in a report on Monday, July 20th. Weiss Ratings cut shares of ESAB from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. Finally, Oppenheimer lowered their target price on shares of ESAB from $140.00 to $135.00 and set an "outperform" rating for the company in a report on Tuesday, July 21st. Eight analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $138.38.

ESAB Trading Down 3.2%

The business has a 50-day simple moving average of $91.50 and a two-hundred day simple moving average of $100.93. The stock has a market cap of $5.10 billion, a price-to-earnings ratio of 29.41, a P/E/G ratio of 1.66 and a beta of 1.19. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.22 and a current ratio of 1.96.

ESAB (NYSE:ESAB - Get Free Report) last posted 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 company had revenue of $807.63 million during the quarter, compared to the consensus estimate of $755.64 million. During the same quarter in the prior year, the business earned $1.36 earnings per share. The firm's revenue for the quarter 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, research analysts forecast that ESAB Corporation will post 5.46 EPS for the current year.

Insiders Place Their Bets

In related news, Director Rhonda L. Jordan sold 1,000 shares of the business's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $95.00, for a total value of $95,000.00. Following the completion of the transaction, the director owned 1,000 shares of the company's stock, valued at $95,000. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 7.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Bank of America Corp DE acquired a new position in ESAB during the 2nd quarter worth about $22,938,000. Caisse de depot et placement du Quebec acquired a new position in shares of ESAB in the 2nd quarter worth approximately $6,496,000. Man Group plc acquired a new stake in shares of ESAB during the second quarter worth $858,000. Medina Value Partners LLC acquired a new stake in ESAB during the 2nd quarter worth about $22,234,753,000. Finally, Jupiter Topco LLC bought a new stake in ESAB in the second quarter worth approximately $2,336,000. 91.13% of the stock is currently owned by institutional investors.

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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