William Blair Investment Management LLC Invests $22.91 Million in ESAB Corporation $ESAB

Key Points

• William Blair Investment Management opened a new position in ESAB Corporation in the fourth quarter, buying 205,018 shares worth about $22.9 million. The stake represented roughly 0.34% of the company.
• ESAB reported quarterly earnings of $1.31 per share, narrowly missing analyst expectations, but revenue rose 10% year over year to $745.6 million and came in above estimates. Analysts still expect full-year EPS of $5.81.
• The company raised its quarterly dividend to $0.12 per share from $0.10, and analysts maintain a generally positive view with an average rating of Moderate Buy and an average price target of about $139.88.

William Blair Investment Management LLC acquired a new position in ESAB Corporation (NYSE:ESAB - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 205,018 shares of the company's stock, valued at approximately $22,905,000. William Blair Investment Management LLC owned about 0.34% of ESAB as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Thrivent Financial for Lutherans raised its stake in shares of ESAB by 0.7% in the second quarter. Thrivent Financial for Lutherans now owns 13,417 shares of the company's stock worth $1,617,000 after purchasing an additional 95 shares during the last quarter. Xponance Inc. increased its position in shares of ESAB by 1.6% during the third quarter. Xponance Inc. now owns 6,488 shares of the company's stock valued at $725,000 after acquiring an additional 102 shares during the last quarter. Public Employees Retirement System of Ohio increased its position in shares of ESAB by 0.5% during the third quarter. Public Employees Retirement System of Ohio now owns 19,605 shares of the company's stock valued at $2,191,000 after acquiring an additional 107 shares during the last quarter. Coldstream Capital Management Inc. increased its position in shares of ESAB by 5.9% during the third quarter. Coldstream Capital Management Inc. now owns 2,689 shares of the company's stock valued at $300,000 after acquiring an additional 149 shares during the last quarter. Finally, Lafayette Investments Inc. increased its position in shares of ESAB by 0.5% during the fourth quarter. Lafayette Investments Inc. now owns 34,266 shares of the company's stock valued at $3,828,000 after acquiring an additional 161 shares during the last quarter. 91.13% of the stock is owned by hedge funds and other institutional investors.

ESAB Stock Performance

NYSE:ESAB opened at $91.81 on Tuesday. 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 business has a fifty day simple moving average of $97.57 and a two-hundred day simple moving average of $110.28. ESAB Corporation has a 1 year low of $83.17 and a 1 year high of $137.42. The company has a market capitalization of $5.59 billion, a P/E ratio of 27.16, a P/E/G ratio of 1.68 and a beta of 1.24.

ESAB (NYSE:ESAB - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $1.31 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.32 by ($0.01). ESAB had a return on equity of 15.04% and a net margin of 7.11%.The firm had revenue of $745.60 million during the quarter, compared to analysts' expectations of $706.74 million. During the same period in the prior year, the business earned $1.25 earnings per share. The business's quarterly revenue was up 10.0% compared to the same quarter last year. On average, analysts expect that ESAB Corporation will post 5.81 earnings per share for the current year.

ESAB Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 17th. Shareholders of record on Friday, July 3rd will be given a $0.12 dividend. This is an increase from ESAB's previous quarterly dividend of $0.10. This represents a $0.48 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, July 2nd. ESAB's dividend payout ratio (DPR) is 11.83%.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on ESAB. JPMorgan Chase & Co. decreased their price target on ESAB from $148.00 to $135.00 and set an "overweight" rating for the company in a research report on Friday, April 10th. Weiss Ratings downgraded ESAB from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, April 27th. Roth Mkm set a $142.00 price target on ESAB in a research report on Thursday, April 16th. DA Davidson decreased their price target on ESAB from $146.00 to $142.00 and set a "buy" rating for the company in a research report on Thursday, April 16th. Finally, Wall Street Zen downgraded ESAB from a "buy" rating to a "hold" rating in a research report on Saturday, March 21st. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $139.88.

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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