BlackRock Inc. Acquires New Position in ESAB Corporation $ESAB

Key Points

• BlackRock acquired 5.32 million ESAB shares worth approximately $524.5 million, giving it an 8.74% stake. Institutional investors collectively own 91.13% of the company.
• ESAB’s shares opened at $79.26, down 2.6%, after the company reported quarterly EPS of $1.33, below the $1.37 consensus estimate, despite revenue rising 12.9% year over year to $807.6 million.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $138.14, substantially above the current share price.

BlackRock Inc. acquired a new stake in ESAB Corporation (NYSE:ESAB - Free Report) in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 5,318,185 shares of the company's stock, valued at approximately $524,533,000. BlackRock Inc. owned about 8.74% of ESAB at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the business. Los Angeles Capital Management LLC purchased a new stake in shares of ESAB in the fourth quarter valued at approximately $33,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of ESAB by 109.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company's stock valued at $40,000 after purchasing an additional 174 shares during the period. Smartleaf Asset Management LLC grew its holdings in shares of ESAB by 259.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 381 shares of the company's stock valued at $43,000 after purchasing an additional 275 shares during the period. Global Retirement Partners LLC increased its position in ESAB by 3,023.1% during the fourth quarter. Global Retirement Partners LLC now owns 406 shares of the company's stock worth $45,000 after purchasing an additional 393 shares during the last quarter. Finally, UMB Bank n.a. increased its position in ESAB by 185.3% during the fourth quarter. UMB Bank n.a. now owns 642 shares of the company's stock worth $72,000 after purchasing an additional 417 shares during the last quarter. 91.13% of the stock is owned by hedge funds and other institutional investors.

ESAB Stock Down 2.6%

Shares of ESAB opened at $79.26 on Tuesday. The stock has a market capitalization of $4.93 billion, a PE ratio of 28.41, a P/E/G ratio of 1.59 and a beta of 1.19. ESAB Corporation has a 1 year low of $77.34 and a 1 year high of $137.42. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.22 and a current ratio of 1.96. The company's 50-day simple moving average is $90.34 and its 200-day simple moving average is $99.32.

ESAB (NYSE:ESAB - Get Free Report) last announced its quarterly earnings data 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). The business had revenue of $807.63 million during the quarter, compared to analyst estimates of $755.64 million. ESAB had a net margin of 5.75% and a return on equity of 14.48%. The company's revenue for the quarter was up 12.9% on a year-over-year basis. During the same quarter last year, the firm posted $1.36 EPS. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. Analysts forecast that ESAB Corporation will post 5.46 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. Weiss Ratings lowered shares of ESAB from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. DA Davidson began coverage on shares of ESAB in a report on Monday, June 15th. They set a "buy" rating and a $130.00 price target for the company. Roth Capital lifted their price target 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. Oppenheimer decreased their price objective on ESAB from $140.00 to $135.00 and set an "outperform" rating on the stock in a report on Tuesday, July 21st. Finally, Stifel Nicolaus lowered their price objective on ESAB from $141.00 to $137.00 and set a "buy" rating for the company in a research report on Monday, July 20th. Seven equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $138.14.

Insider Activity

In other news, Director Rhonda L. Jordan sold 1,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $95.00, for a total value of $95,000.00. Following the sale, the director directly owned 1,000 shares in the company, valued at approximately $95,000. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 7.20% of the company's stock.

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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