Lincoln Electric (NASDAQ:LECO) Shares Gap Down Following Weak Earnings

Lincoln Electric Holdings, Inc. (NASDAQ:LECO - Get Free Report) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $184.00, but opened at $170.02. Lincoln Electric shares last traded at $173.54, with a volume of 38,542 shares changing hands.

The industrial products company reported $2.16 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.22 by ($0.06). Lincoln Electric had a return on equity of 40.19% and a net margin of 11.63%. The business had revenue of $365.45 million for the quarter, compared to analyst estimates of $974.39 million. During the same quarter in the previous year, the company earned $2.23 EPS. The business's revenue for the quarter was up 2.4% on a year-over-year basis.

Lincoln Electric Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 15th. Stockholders of record on Monday, June 30th will be given a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a dividend yield of 1.64%. The ex-dividend date is Monday, June 30th. Lincoln Electric's dividend payout ratio is presently 36.99%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on LECO. Morgan Stanley lowered their target price on Lincoln Electric from $187.00 to $179.00 and set an "underweight" rating for the company in a research note on Wednesday, April 16th. Barclays boosted their price target on Lincoln Electric from $220.00 to $235.00 and gave the company an "overweight" rating in a report on Tuesday, February 18th. StockNews.com upgraded Lincoln Electric from a "hold" rating to a "buy" rating in a research report on Friday, April 25th. Stifel Nicolaus increased their price objective on shares of Lincoln Electric from $178.00 to $180.00 and gave the stock a "hold" rating in a research report on Thursday. Finally, Robert W. Baird lowered their price target on shares of Lincoln Electric from $242.00 to $212.00 and set an "outperform" rating for the company in a research report on Thursday. One analyst has rated the stock with a sell rating, one has given a hold rating and five have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $216.00.

Insider Transactions at Lincoln Electric

In related news, CEO Steven B. Hedlund sold 21,054 shares of the business's stock in a transaction dated Wednesday, February 19th. The stock was sold at an average price of $215.47, for a total value of $4,536,505.38. Following the transaction, the chief executive officer now owns 54,660 shares in the company, valued at approximately $11,777,590.20. The trade was a 27.81 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 2.63% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of LECO. Mizuho Bank Ltd. purchased a new position in Lincoln Electric during the 4th quarter valued at about $30,000. Jones Financial Companies Lllp raised its position in Lincoln Electric by 255.1% in the fourth quarter. Jones Financial Companies Lllp now owns 174 shares of the industrial products company's stock worth $33,000 after purchasing an additional 125 shares in the last quarter. V Square Quantitative Management LLC increased its position in shares of Lincoln Electric by 54.1% during the 4th quarter. V Square Quantitative Management LLC now owns 299 shares of the industrial products company's stock worth $56,000 after purchasing an additional 105 shares in the last quarter. Wood Tarver Financial Group LLC acquired a new position in Lincoln Electric during the 4th quarter worth about $68,000. Finally, UMB Bank n.a. increased its stake in shares of Lincoln Electric by 37.5% in the 4th quarter. UMB Bank n.a. now owns 389 shares of the industrial products company's stock valued at $73,000 after buying an additional 106 shares during the period. Institutional investors own 79.61% of the company's stock.

Lincoln Electric Stock Down 0.4 %

The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.25 and a current ratio of 1.87. The firm's 50-day simple moving average is $187.29 and its 200 day simple moving average is $196.04. The company has a market cap of $10.24 billion, a P/E ratio of 22.43, a PEG ratio of 1.51 and a beta of 1.18.

About Lincoln Electric

Lincoln Electric Holdings, Inc, through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. It offers brazing and soldering filler metals, arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, and specialty gas regulators, and education solutions, as well as a portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing, as well as involved in brazing and soldering alloys, and in the retail business in the United States.