ESAB (NYSE:ESAB) Hits New 1-Year Low - Here's What Happened

Key Points

• ESAB shares fell 4.6% to a new 52-week low of $67.21, trading well below their 50-day and 200-day moving averages.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus, with seven Buy ratings and an average price target of $138.14.
• Quarterly EPS came in slightly below expectations at $1.33, though revenue rose 12.9% year over year to $807.63 million; ESAB also declared a $0.12 quarterly dividend.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) hit a new 52-week low on Tuesday . The stock traded as low as $67.21 and last traded at $67.4350, with a volume of 1241021 shares changing hands. The stock had previously closed at $70.69.

Wall Street Analyst Weigh In

ESAB has been the topic of several recent research reports. Oppenheimer lowered their price objective on ESAB from $140.00 to $135.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 21st. DA Davidson initiated coverage on shares of ESAB in a research note on Monday, June 15th. They issued a "buy" rating and a $130.00 price target on the stock. Roth Capital increased their target price on ESAB from $142.00 to $151.00 and gave the company a "buy" rating in a report on Tuesday, July 7th. Stifel Nicolaus dropped their price objective on shares of ESAB from $141.00 to $137.00 and set a "buy" rating for the company in a research note on Monday, July 20th. Finally, Weiss Ratings downgraded ESAB from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, ESAB currently has a consensus rating of "Moderate Buy" and an average target price of $138.14.

ESAB Stock Down 4.6%

The firm's fifty day simple moving average is $83.08 and its two-hundred day simple moving average is $93.34. The company has a current ratio of 1.96, a quick ratio of 1.22 and a debt-to-equity ratio of 0.99. The company has a market capitalization of $4.19 billion, a price-to-earnings ratio of 24.17, a price-to-earnings-growth ratio of 1.38 and a beta of 1.17.

ESAB (NYSE:ESAB - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.33 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.37 by ($0.04). The firm had revenue of $807.63 million for the quarter, compared to analyst estimates of $755.64 million. ESAB had a return on equity of 14.48% and a net margin of 5.75%.The firm's quarterly revenue was up 12.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.36 EPS. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. Sell-side analysts anticipate that ESAB Corporation will post 5.46 EPS for the current year.

ESAB Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 16th. Investors of record on Friday, October 2nd will be given a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 0.7%. The ex-dividend date is Friday, October 2nd. ESAB's dividend payout ratio is presently 17.20%.

Insider Transactions at ESAB

In other ESAB news, Director Rhonda L. Jordan sold 1,000 shares of ESAB stock in a transaction on Friday, August 7th. The stock was sold at an average price of $95.00, for a total value of $95,000.00. Following the sale, the director owned 1,000 shares in the company, valued at $95,000. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 7.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ESAB

Large investors have recently modified their holdings of the business. Tidal Investments LLC acquired a new stake in shares of ESAB during the 2nd quarter worth about $2,195,000. Nykredit A S acquired a new position in ESAB in the second quarter valued at about $197,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in ESAB in the second quarter valued at about $365,000. California State Teachers Retirement System boosted its stake in ESAB by 9,178.5% during the second quarter. California State Teachers Retirement System now owns 6,249,789 shares of the company's stock worth $616,417,000 after buying an additional 6,182,431 shares during the period. Finally, HB Wealth Management LLC boosted its stake in ESAB by 29.4% during the second quarter. HB Wealth Management LLC now owns 3,207 shares of the company's stock worth $316,000 after buying an additional 728 shares during the period. Institutional investors and hedge funds own 91.13% of the company's stock.

About ESAB

ESAB Corporation NYSE: ESAB is a global provider of welding and cutting technologies. The company develops and manufactures welding equipment, welding consumables, cutting systems, automation solutions and related accessories used in industrial, commercial and maintenance applications.

Its product portfolio includes arc-welding equipment, electrodes and welding wires, gas and plasma cutting systems, robotic and automated welding solutions, and digital tools designed to improve fabrication processes.

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