ESAB (NYSE:ESAB) Trading Up 10.4% - Here's Why

Key Points

• Shares jumped about 10.4% on Friday to roughly $109, despite trading volume being ~79% below the daily average.
• Analysts have trimmed targets but the consensus remains a "Moderate Buy" with a consensus price target of $138.40 (eight Buy, three Hold).
• ESAB slightly beat EPS estimates, reported revenue up 7.5% year‑over‑year, announced a $0.10 quarterly dividend, and the CEO sold 59,404 shares in a disclosed transaction.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) were up 10.4% on Friday . The company traded as high as $107.72 and last traded at $109.2140. Approximately 113,159 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 547,813 shares. The stock had previously closed at $98.93.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on ESAB shares. DA Davidson dropped their price objective on shares of ESAB from $146.00 to $142.00 and set a "buy" rating on the stock in a report on Thursday. JPMorgan Chase & Co. decreased their target price on shares of ESAB from $148.00 to $135.00 and set an "overweight" rating for the company in a research report on Friday, April 10th. Jefferies Financial Group reiterated a "buy" rating and issued a $130.00 target price (down from $150.00) on shares of ESAB in a research report on Tuesday, March 31st. Wall Street Zen lowered shares of ESAB from a "buy" rating to a "hold" rating in a research report on Saturday, March 21st. Finally, Roth Mkm set a $142.00 target price on shares of ESAB in a research report on Thursday. Eight research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, ESAB currently has a consensus rating of "Moderate Buy" and a consensus price target of $138.40.

ESAB Stock Up 10.9%

The stock's 50-day moving average is $110.83 and its 200-day moving average is $113.98. The stock has a market cap of $6.68 billion, a P/E ratio of 29.65, a price-to-earnings-growth ratio of 1.88 and a beta of 1.36. The company has a current ratio of 1.90, a quick ratio of 1.17 and a debt-to-equity ratio of 0.56.

ESAB (NYSE:ESAB - Get Free Report) last announced its earnings results on Friday, February 20th. The company reported $1.35 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.34 by $0.01. The firm had revenue of $687.00 million during the quarter, compared to analyst estimates of $687.80 million. ESAB had a net margin of 7.98% and a return on equity of 15.38%. ESAB's revenue was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.28 EPS. As a group, research analysts anticipate that ESAB Corporation will post 5.16 earnings per share for the current fiscal year.

ESAB Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 17th. Stockholders of record on Thursday, April 2nd will be given a dividend of $0.10 per share. The ex-dividend date is Thursday, April 2nd. This represents a $0.40 annualized dividend and a dividend yield of 0.4%. ESAB's dividend payout ratio (DPR) is 10.81%.

Insider Buying and Selling at ESAB

In other news, CEO Shyam Kambeyanda sold 59,404 shares of the firm's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $123.79, for a total transaction of $7,353,621.16. Following the completion of the transaction, the chief executive officer owned 99,864 shares in the company, valued at approximately $12,362,164.56. This trade represents a 37.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 7.20% of the company's stock.

Hedge Funds Weigh In On ESAB

Several large investors have recently made changes to their positions in the business. T. Rowe Price Investment Management Inc. boosted its position in shares of ESAB by 0.6% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 8,006,238 shares of the company's stock valued at $894,457,000 after purchasing an additional 45,841 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of ESAB by 11.7% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 5,852,692 shares of the company's stock valued at $653,864,000 after purchasing an additional 613,327 shares in the last quarter. Durable Capital Partners LP boosted its position in shares of ESAB by 40.5% during the 3rd quarter. Durable Capital Partners LP now owns 1,945,854 shares of the company's stock valued at $217,430,000 after purchasing an additional 560,678 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of ESAB by 1.3% during the 4th quarter. Geode Capital Management LLC now owns 1,318,269 shares of the company's stock valued at $147,300,000 after purchasing an additional 16,466 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of ESAB by 3.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,181,526 shares of the company's stock valued at $132,008,000 after purchasing an additional 35,782 shares in the last quarter. Institutional investors own 91.13% of the company's stock.

ESAB Company Profile

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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