Hsbc Holdings PLC Sells 7,781 Shares of ESCO Technologies Inc. $ESE

Key Points

• HSBC Holdings reduced its ESCO Technologies stake by 60.9% in the second quarter, selling 7,781 shares and retaining 4,988 shares valued at approximately $1.75 million. Institutional investors collectively own 95.7% of the company.
• Analysts remain broadly positive, with ESCO receiving an average “Buy” rating and a consensus price target of $416.50, well above the reported opening price of $270.27.
• ESCO exceeded quarterly earnings expectations, reporting $2.20 in EPS versus a $2.12 estimate, while revenue rose 14.4% year over year to $339.03 million. The company also declared a quarterly dividend of $0.08 per share.

Hsbc Holdings PLC cut its stake in shares of ESCO Technologies Inc. (NYSE:ESE - Free Report) by 60.9% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,988 shares of the scientific and technical instruments company's stock after selling 7,781 shares during the period. Hsbc Holdings PLC's holdings in ESCO Technologies were worth $1,751,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. acquired a new position in ESCO Technologies during the second quarter valued at $1,433,229,000. Northwestern Mutual Wealth Management Co. increased its holdings in ESCO Technologies by 97,963,600.0% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,938,911 shares of the scientific and technical instruments company's stock valued at $574,234,000 after purchasing an additional 2,938,908 shares during the last quarter. Capital World Investors grew its position in ESCO Technologies by 103.4% in the 4th quarter. Capital World Investors now owns 902,956 shares of the scientific and technical instruments company's stock valued at $176,429,000 after acquiring an additional 458,980 shares in the last quarter. Alliancebernstein L.P. grew its stake in ESCO Technologies by 1,204.3% during the 3rd quarter. Alliancebernstein L.P. now owns 432,050 shares of the scientific and technical instruments company's stock worth $91,210,000 after purchasing an additional 398,926 shares in the last quarter. Finally, Wasatch Advisors LP acquired a new stake in shares of ESCO Technologies during the 1st quarter worth about $81,106,000. 95.70% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Weiss Ratings raised ESCO Technologies from a "buy (b)" rating to a "buy (b+)" rating in a report on Tuesday. JPMorgan Chase & Co. assumed coverage on ESCO Technologies in a report on Monday, June 15th. They set an "overweight" rating and a $420.00 price objective on the stock. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $413.00 price target on shares of ESCO Technologies in a research note on Monday, August 10th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, ESCO Technologies presently has an average rating of "Buy" and a consensus target price of $416.50.

ESCO Technologies Trading Up 1.1%

ESE opened at $270.27 on Friday. ESCO Technologies Inc. has a 12-month low of $193.68 and a 12-month high of $362.15. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.38 and a quick ratio of 0.94. The stock has a market capitalization of $7.00 billion, a PE ratio of 22.26, a P/E/G ratio of 1.53 and a beta of 1.10. The firm's fifty day moving average price is $303.53 and its 200 day moving average price is $302.49.

ESCO Technologies (NYSE:ESE - Get Free Report) last released its earnings results on Thursday, August 6th. The scientific and technical instruments company reported $2.20 earnings per share for the quarter, topping the consensus estimate of $2.12 by $0.08. The company had revenue of $339.03 million during the quarter, compared to the consensus estimate of $341.40 million. ESCO Technologies had a net margin of 24.39% and a return on equity of 13.28%. The company's revenue was up 14.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.60 EPS. ESCO Technologies has set its FY 2026 guidance at 8.300-8.400 EPS and its Q4 2026 guidance at 2.550-2.650 EPS. As a group, research analysts expect that ESCO Technologies Inc. will post 8.35 EPS for the current fiscal year.

ESCO Technologies Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st will be paid a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date is Thursday, October 1st. ESCO Technologies's dividend payout ratio (DPR) is presently 2.64%.

About ESCO Technologies

ESCO Technologies Inc is a St. Louis, Missouri-based provider of engineered products and services for the aerospace, defense, utility, healthcare, telecommunications and industrial markets. The company develops specialized technologies used in testing, measurement, filtration, fluid control and power-delivery applications.

Through its Aerospace & Defense segment, ESCO supplies filtration systems, fluid-control equipment, valves, electromechanical products and other components for commercial and military aircraft, spacecraft and defense platforms.

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