ESAB (NYSE:ESAB) Trading Down 13.4% - Should You Sell?

Key Points

• ESAB Corporation's stock price decreased by 13.4% to $114.40, significantly below its previous close of $132.03, with trading volumes down by 62% compared to the average.
• Analysts have mixed reviews on ESAB, with three holding a "hold" rating and four a "buy" rating, reflecting an average target price of $140.00.
• The company recently increased its quarterly dividend from $0.08 to $0.10 per share, representing a 0.4% yield and reflecting a low dividend payout ratio of 9.01%.

ESAB Corporation (NYSE:ESAB - Get Free Report) was down 13.4% on Wednesday . The company traded as low as $115.33 and last traded at $114.40. Approximately 113,186 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 294,932 shares. The stock had previously closed at $132.03.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Evercore ISI increased their price target on ESAB from $120.00 to $125.00 and gave the company an "in-line" rating in a research note on Monday, May 19th. Stifel Nicolaus increased their price target on ESAB from $126.00 to $141.00 and gave the company a "hold" rating in a research note on Monday, July 21st. Finally, Robert W. Baird set a $143.00 price target on ESAB in a research note on Friday, May 2nd. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $140.00.

ESAB Price Performance

The firm has a market capitalization of $6.76 billion, a P/E ratio of 24.86, a price-to-earnings-growth ratio of 3.17 and a beta of 1.27. The firm has a 50 day moving average price of $125.61 and a 200-day moving average price of $122.71. The company has a current ratio of 1.91, a quick ratio of 1.24 and a debt-to-equity ratio of 0.54.

ESAB (NYSE:ESAB - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $1.36 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.04. ESAB had a return on equity of 16.98% and a net margin of 9.98%. During the same period in the prior year, the business earned $1.32 EPS. The business's revenue for the quarter was up 1.3% on a year-over-year basis. On average, analysts expect that ESAB Corporation will post 5.16 earnings per share for the current year.

ESAB Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 18th. Shareholders of record on Thursday, July 3rd were issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a yield of 0.4%. The ex-dividend date was Thursday, July 3rd. This is an increase from ESAB's previous quarterly dividend of $0.08. ESAB's dividend payout ratio (DPR) is 9.01%.

Insider Buying and Selling at ESAB

In other news, insider Olivier Biebuyck sold 1,440 shares of ESAB stock in a transaction on Thursday, July 31st. The stock was sold at an average price of $133.49, for a total value of $192,225.60. Following the transaction, the insider directly owned 14,989 shares in the company, 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 can be accessed through this hyperlink. Also, Director Rhonda L. Jordan sold 1,500 shares of ESAB stock in a transaction on Wednesday, June 11th. The shares were sold at an average price of $126.42, for a total value of $189,630.00. The disclosure for this sale can be found here. Insiders have sold a total of 4,357 shares of company stock worth $567,695 over the last 90 days. 7.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ESAB

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD boosted its holdings in ESAB by 3.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,538,081 shares of the company's stock worth $904,118,000 after acquiring an additional 225,345 shares in the last quarter. JPMorgan Chase & Co. lifted its position in ESAB by 8.4% during the 1st quarter. JPMorgan Chase & Co. now owns 2,387,626 shares of the company's stock worth $278,158,000 after acquiring an additional 185,058 shares during the period. Invesco Ltd. lifted its position in ESAB by 17.9% during the 4th quarter. Invesco Ltd. now owns 2,097,624 shares of the company's stock worth $251,589,000 after acquiring an additional 318,018 shares during the period. Champlain Investment Partners LLC lifted its position in ESAB by 42.0% during the 1st quarter. Champlain Investment Partners LLC now owns 1,929,099 shares of the company's stock worth $224,740,000 after acquiring an additional 570,895 shares during the period. Finally, Neuberger Berman Group LLC lifted its position in ESAB by 1.7% during the 4th quarter. Neuberger Berman Group LLC now owns 1,888,685 shares of the company's stock worth $226,529,000 after acquiring an additional 31,248 shares during the period. 91.13% of the stock is currently owned by hedge funds and other institutional investors.

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.

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