Dimensional Fund Advisors LP Grows Stake in ESAB Corporation $ESAB

Key Points

• Dimensional Fund Advisors increased its ESAB stake by 2.9% in the first quarter, owning 1.22 million shares valued at approximately $117.5 million, or 2% of the company. Institutional investors collectively own 91.13% of ESAB.
• Analysts maintain a generally positive outlook, with eight Buy ratings and two Holds. ESAB has a consensus rating of “Moderate Buy” and an average price target of $138.38, despite several recent target-price reductions.
• ESAB reported quarterly revenue of $745.6 million, up 10% year over year, while EPS of $1.31 narrowly missed estimates. The company also raised its quarterly dividend to $0.12 per share, yielding approximately 0.5%.

Dimensional Fund Advisors LP increased its position in shares of ESAB Corporation (NYSE:ESAB - Free Report) by 2.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,215,909 shares of the company's stock after buying an additional 34,383 shares during the period. Dimensional Fund Advisors LP owned about 2.00% of ESAB worth $117,500,000 at the end of the most recent quarter.

A number of other hedge funds also recently added to or reduced their stakes in the business. Los Angeles Capital Management LLC bought a new stake in shares of ESAB in the 4th quarter valued at about $33,000. Northwestern Mutual Wealth Management Co. raised its stake in ESAB by 109.4% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company's stock worth $40,000 after buying an additional 174 shares in the last quarter. Smartleaf Asset Management LLC raised its stake in ESAB by 259.4% in the fourth quarter. Smartleaf Asset Management LLC now owns 381 shares of the company's stock worth $43,000 after buying an additional 275 shares in the last quarter. Global Retirement Partners LLC lifted its holdings 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 buying an additional 393 shares during the period. Finally, UMB Bank n.a. boosted its position in ESAB by 185.3% during the 4th quarter. UMB Bank n.a. now owns 642 shares of the company's stock valued at $72,000 after acquiring an additional 417 shares in the last quarter. 91.13% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on ESAB shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of ESAB in a research report on Friday. Stifel Nicolaus reduced their target price on shares of ESAB from $141.00 to $137.00 and set a "buy" rating for the company in a report on Monday, July 20th. JPMorgan Chase & Co. decreased their price target 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. Roth Capital raised their price target on shares of ESAB from $142.00 to $151.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Finally, DA Davidson assumed coverage on shares of ESAB in a research report on Monday, June 15th. They issued a "buy" rating and a $130.00 price objective on the stock. Eight investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $138.38.

ESAB Stock Up 0.8%

ESAB stock opened at $89.07 on Wednesday. ESAB Corporation has a 1-year low of $82.18 and a 1-year high of $137.42. The business has a fifty day moving average price of $92.13 and a 200-day moving average price of $103.82. 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 stock has a market capitalization of $5.42 billion, a price-to-earnings ratio of 26.35, a PEG ratio of 1.65 and a beta of 1.17.

ESAB (NYSE:ESAB - Get Free Report) last announced 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 net margin of 7.11% and a return on equity of 15.04%. The company's quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the prior year, the company earned $1.25 earnings per share. Equities research analysts forecast that ESAB Corporation will post 5.72 EPS for the current fiscal year.

ESAB Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 17th. Stockholders of record on Friday, July 3rd were issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 0.5%. This is an increase from ESAB's previous quarterly dividend of $0.10. The ex-dividend date was Thursday, July 2nd. ESAB's dividend payout ratio is currently 14.20%.

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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