Algebris UK Ltd. Takes $44.81 Million Position in Lincoln Electric Holdings, Inc. $LECO

Key Points

• Algebris UK Ltd. acquired a new $44.81 million stake in Lincoln Electric, purchasing 1.27 million shares—about 2.33% of the company and 3% of the fund’s portfolio. Institutional investors collectively own 79.61% of LECO.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $307.22 price target. Recent upgrades included Morgan Stanley to “equal weight” and Wall Street Zen to “buy.”
• Lincoln Electric exceeded quarterly expectations, reporting $2.93 in EPS and $1.22 billion in revenue, with revenue up 12% year over year. The company declared a quarterly dividend of $0.79 per share, equal to a 1.1% annualized yield.

Algebris UK Ltd. purchased a new stake in shares of Lincoln Electric Holdings, Inc. (NASDAQ:LECO - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The fund purchased 1,271,655 shares of the industrial products company's stock, valued at approximately $44,811,000. Lincoln Electric comprises 3.0% of Algebris UK Ltd.'s investment portfolio, making the stock its 13th largest position. Algebris UK Ltd. owned approximately 2.33% of Lincoln Electric as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in LECO. NewEdge Advisors LLC lifted its position in shares of Lincoln Electric by 8.6% during the first quarter. NewEdge Advisors LLC now owns 2,477 shares of the industrial products company's stock valued at $468,000 after purchasing an additional 197 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Lincoln Electric by 553.4% in the first quarter. Jones Financial Companies Lllp now owns 1,137 shares of the industrial products company's stock valued at $215,000 after acquiring an additional 963 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Lincoln Electric by 8.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 362,561 shares of the industrial products company's stock worth $68,582,000 after purchasing an additional 29,505 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Lincoln Electric by 8.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 137,540 shares of the industrial products company's stock worth $26,017,000 after buying an additional 10,961 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its holdings in shares of Lincoln Electric by 980.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 281 shares of the industrial products company's stock worth $53,000 after buying an additional 255 shares during the last quarter. 79.61% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have issued reports on LECO. Stifel Nicolaus set a $275.00 target price on Lincoln Electric in a research report on Friday, May 1st. Weiss Ratings upgraded Lincoln Electric from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, July 10th. Wall Street Zen raised shares of Lincoln Electric from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Morgan Stanley upgraded shares of Lincoln Electric from an "underweight" rating to an "equal weight" rating and increased their target price for the stock from $257.00 to $283.00 in a research report on Monday, August 10th. Finally, DA Davidson initiated coverage on Lincoln Electric in a research note on Tuesday, June 16th. They set a "buy" rating and a $320.00 price objective on the stock. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $307.22.

Insider Activity

In other news, EVP Michael J. Whitehead sold 845 shares of the company's stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $274.81, for a total value of $232,214.45. Following the transaction, the executive vice president directly owned 9,319 shares in the company, valued at approximately $2,560,954.39. This represents a 8.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 1.68% of the company's stock.

Lincoln Electric Stock Down 0.9%

NASDAQ LECO opened at $279.56 on Thursday. The business's 50-day moving average is $265.21 and its 200 day moving average is $265.77. Lincoln Electric Holdings, Inc. has a 1 year low of $216.22 and a 1 year high of $310.00. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.98 and a quick ratio of 1.20. The stock has a market capitalization of $15.24 billion, a PE ratio of 27.93, a PEG ratio of 1.69 and a beta of 1.20.

Lincoln Electric (NASDAQ:LECO - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The industrial products company reported $2.93 EPS for the quarter, topping analysts' consensus estimates of $2.81 by $0.12. Lincoln Electric had a return on equity of 39.23% and a net margin of 12.35%.The firm had revenue of $1.22 billion for the quarter, compared to analysts' expectations of $1.17 billion. During the same period in the previous year, the firm posted $2.60 EPS. The business's revenue for the quarter was up 12.0% compared to the same quarter last year. Sell-side analysts forecast that Lincoln Electric Holdings, Inc. will post 11.11 earnings per share for the current year.

Lincoln Electric Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be issued a $0.79 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.1%. Lincoln Electric's dividend payout ratio (DPR) is presently 31.57%.

About Lincoln Electric

Lincoln Electric Holdings, Inc NASDAQ: LECO is a global manufacturer and distributor of welding products, robotic welding systems, plasma and oxyfuel cutting equipment, and surface treatment systems. The company's portfolio encompasses welding consumables such as electrodes and wires, as well as power sources, torches, and automated welding cells. Lincoln Electric also offers software solutions and training services designed to optimize productivity and quality in fabrication and manufacturing operations.

Founded in 1895 by John C.

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