ESAB (NYSE:ESAB) Shares Down 5.6% - Time to Sell?

Key Points

• ESAB shares fell 5.6% in Monday trading, closing at $84.71 after touching an intraday low of $84.88. Volume was lighter than usual, with about 405,237 shares changing hands versus a 627,991 average.
• Despite the pullback, Wall Street remains largely positive on the stock: 8 analysts rate ESAB a Buy and 2 rate it Hold, with a consensus target price of $139.00. Recent target revisions were mixed, including both increases and cuts.
• ESAB reported mixed quarterly results, missing EPS estimates by $0.01 while revenue came in above expectations and rose 10% year over year. The company also raised its quarterly dividend to $0.12 from $0.10, implying a 0.6% annualized yield.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) fell 5.6% during trading on Monday . The company traded as low as $84.88 and last traded at $84.71. Approximately 405,237 shares traded hands during trading, a decline of 35% from the average daily volume of 627,991 shares. The stock had previously closed at $89.78.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on ESAB shares. Oppenheimer reiterated an "outperform" rating and set a $140.00 target price on shares of ESAB in a research report on Tuesday, April 14th. Stifel Nicolaus reduced their price target on ESAB from $141.00 to $137.00 and set a "buy" rating for the company in a research report on Monday. Roth Capital increased their price objective on shares of ESAB from $142.00 to $151.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Jefferies Financial Group reissued a "buy" rating and set a $130.00 target price (down from $150.00) on shares of ESAB in a report on Tuesday, March 31st. Finally, JPMorgan Chase & Co. dropped their target price on ESAB from $148.00 to $135.00 and set an "overweight" rating on the stock in a research report on Friday, April 10th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $139.00.

ESAB Stock Down 5.6%

The company has a market capitalization of $5.16 billion, a PE ratio of 25.07, a P/E/G ratio of 1.65 and a beta of 1.17. The company has a debt-to-equity ratio of 0.91, a current ratio of 2.97 and a quick ratio of 2.26. The business's 50 day simple moving average is $92.84 and its 200 day simple moving average is $105.20.

ESAB (NYSE:ESAB - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $1.31 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.32 by ($0.01). The business had revenue of $745.60 million for the quarter, compared to analyst estimates of $706.74 million. ESAB had a return on equity of 15.04% and a net margin of 7.11%.ESAB's revenue was up 10.0% compared to the same quarter last year. During the same period last year, the business earned $1.25 EPS. As a group, analysts anticipate that ESAB Corporation will post 5.79 earnings per share for the current fiscal year.

ESAB Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 17th. Shareholders of record on Friday, July 3rd were paid a $0.12 dividend. This is a boost from ESAB's previous quarterly dividend of $0.10. This represents a $0.48 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Thursday, July 2nd. ESAB's dividend payout ratio (DPR) is presently 14.20%.

Institutional Trading of ESAB

Hedge funds have recently modified their holdings of the business. Hudson Value Partners LLC grew its holdings in shares of ESAB by 19.9% in the 2nd quarter. Hudson Value Partners LLC now owns 65,729 shares of the company's stock worth $6,483,000 after acquiring an additional 10,915 shares during the period. Defender Capital LLC. grew its position in shares of ESAB by 23.2% in the second quarter. Defender Capital LLC. now owns 36,564 shares of the company's stock valued at $3,606,000 after purchasing an additional 6,877 shares during the period. Dynamic Advisor Solutions LLC lifted its holdings in shares of ESAB by 3.0% during the 2nd quarter. Dynamic Advisor Solutions LLC now owns 11,137 shares of the company's stock worth $1,098,000 after acquiring an additional 328 shares during the period. Moody National Bank Trust Division raised its stake in ESAB by 21.3% during the second quarter. Moody National Bank Trust Division now owns 3,076 shares of the company's stock worth $303,000 after purchasing an additional 540 shares during the period. Finally, Confluence Investment Management LLC lifted its stake in shares of ESAB by 24.5% in the 2nd quarter. Confluence Investment Management LLC now owns 14,709 shares of the company's stock valued at $1,451,000 after purchasing an additional 2,892 shares in the last quarter. 91.13% of the stock is owned by institutional investors and hedge funds.

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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