Lincoln Electric Holdings, Inc. (NASDAQ:LECO) Sees Significant Decrease in Short Interest

Key Points

• Short interest dropped 20.7% in April to 743,845 shares (1.4% of shares outstanding), with a days-to-cover ratio of 1.7, signaling reduced bearish positioning in LECO.
• Lincoln Electric beat Q1 estimates, reporting $2.50 EPS vs. $2.43 expected and $1.12B revenue (+11.7% YoY); shares traded up to $265 and the company declared a $0.79 quarterly dividend (1.2% yield).
• Institutional investors/hedge funds own about 79.61% of the stock, while analyst sentiment is mixed (five Buys, three Holds, one Sell) with a consensus price target near $291.14.

Lincoln Electric Holdings, Inc. (NASDAQ:LECO - Get Free Report) was the target of a significant drop in short interest in April. As of April 15th, there was short interest totaling 743,845 shares, a drop of 20.7% from the March 31st total of 937,435 shares. Based on an average daily trading volume, of 441,555 shares, the days-to-cover ratio is currently 1.7 days. Currently, 1.4% of the shares of the stock are short sold.

Institutional Investors Weigh In On Lincoln Electric

Several hedge funds have recently bought and sold shares of the business. Oregon Public Employees Retirement Fund lifted its stake in Lincoln Electric by 3.2% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 11,333 shares of the industrial products company's stock worth $2,823,000 after acquiring an additional 349 shares in the last quarter. Jackson Thornton Wealth Management LLC lifted its stake in Lincoln Electric by 4.6% in the 1st quarter. Jackson Thornton Wealth Management LLC now owns 1,241 shares of the industrial products company's stock worth $318,000 after acquiring an additional 55 shares in the last quarter. Clare Market Investments LLC purchased a new stake in Lincoln Electric in the 1st quarter worth about $1,065,000. K.J. Harrison & Partners Inc lifted its stake in Lincoln Electric by 71.4% in the 1st quarter. K.J. Harrison & Partners Inc now owns 12,000 shares of the industrial products company's stock worth $2,989,000 after acquiring an additional 5,000 shares in the last quarter. Finally, Praxis Investment Management Inc. lifted its stake in Lincoln Electric by 13.0% in the 1st quarter. Praxis Investment Management Inc. now owns 1,966 shares of the industrial products company's stock worth $490,000 after acquiring an additional 226 shares in the last quarter. 79.61% of the stock is owned by hedge funds and other institutional investors.

Lincoln Electric Trading Up 2.9%

Shares of NASDAQ:LECO traded up $7.49 during midday trading on Thursday, reaching $265.00. The company had a trading volume of 851,706 shares, compared to its average volume of 387,852. The company has a fifty day simple moving average of $261.59 and a two-hundred day simple moving average of $253.47. The firm has a market cap of $14.53 billion, a price-to-earnings ratio of 28.43, a price-to-earnings-growth ratio of 1.60 and a beta of 1.28. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.16 and a current ratio of 1.82. Lincoln Electric has a 1-year low of $175.89 and a 1-year high of $310.00.

Lincoln Electric (NASDAQ:LECO - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $2.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.43 by $0.07. The firm had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.07 billion. Lincoln Electric had a return on equity of 39.35% and a net margin of 12.30%.The business's revenue for the quarter was up 11.7% on a year-over-year basis. During the same period in the prior year, the business earned $2.16 EPS. Research analysts predict that Lincoln Electric will post 10.76 earnings per share for the current year.

Lincoln Electric Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be paid a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Tuesday, June 30th. Lincoln Electric's dividend payout ratio is currently 33.91%.

Wall Street Analyst Weigh In

LECO has been the subject of a number of recent analyst reports. Wall Street Zen lowered Lincoln Electric from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Roth Mkm reiterated a "buy" rating and issued a $297.00 price target (up from $285.00) on shares of Lincoln Electric in a research report on Tuesday, February 3rd. Weiss Ratings upgraded Lincoln Electric from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, April 16th. KeyCorp increased their price target on Lincoln Electric from $280.00 to $340.00 and gave the company an "overweight" rating in a research report on Friday, February 13th. Finally, Barclays decreased their price target on Lincoln Electric from $310.00 to $280.00 and set an "overweight" rating for the company in a research report on Wednesday, April 1st. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $291.14.

Lincoln Electric Company Profile

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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