ESAB (NYSE:ESAB) Hits New 1-Year Low - Should You Sell?

Key Points

• ESAB shares hit a new 52-week low, trading as low as $64.83, well below their 50-day and 200-day moving averages of $81.24 and $91.71, respectively.
• Despite the decline, analysts remain broadly positive: seven rate the stock a Buy and one a Hold, with an average price target of $135.57—more than double the recent trading price.
• ESAB’s latest quarterly revenue rose 12.9% year over year to $807.6 million and exceeded estimates, although EPS of $1.33 missed expectations. The company also declared a $0.12 quarterly dividend, yielding approximately 0.7%.

ESAB Corporation (NYSE:ESAB - Get Free Report) shares hit a new 52-week low on Monday . The stock traded as low as $64.83 and last traded at $66.2410, with a volume of 1034785 shares changing hands. The stock had previously closed at $64.94.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on ESAB shares. Stifel Nicolaus lowered their price target on shares of ESAB from $141.00 to $137.00 and set a "buy" rating on the stock in a report on Monday, July 20th. Oppenheimer decreased their target price on shares of ESAB from $140.00 to $135.00 and set an "outperform" rating on the stock in a report on Tuesday, July 21st. DA Davidson began coverage on shares of ESAB in a report on Monday, June 15th. They set a "buy" rating and a $130.00 target price on the stock. Roth Capital reiterated a "buy" rating and issued a $133.00 target price (down from $151.00) on shares of ESAB in a research note on Tuesday, September 15th. Finally, Weiss Ratings downgraded shares of ESAB from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $135.57.

ESAB Price Performance

The firm has a market capitalization of $4.14 billion, a P/E ratio of 23.88, a price-to-earnings-growth ratio of 1.27 and a beta of 1.17. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.22 and a current ratio of 1.96. The business has a 50 day simple moving average of $81.24 and a two-hundred day simple moving average of $91.71.

ESAB (NYSE:ESAB - Get Free Report) last issued 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). ESAB had a net margin of 5.75% and a return on equity of 14.48%. The business had revenue of $807.63 million for the quarter, compared to the consensus estimate of $755.64 million. During the same quarter last year, the business posted $1.36 EPS. The business's revenue was up 12.9% compared to the same quarter last year. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. On average, sell-side analysts expect that ESAB Corporation will post 5.46 EPS for the current fiscal year.

ESAB Dividend Announcement

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

Insider Buying and Selling

In other ESAB news, Director Rhonda L. Jordan sold 1,000 shares of the business's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $95.00, for a total value of $95,000.00. Following the completion of the transaction, the director owned 1,000 shares of the company's stock, valued at $95,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 7.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of ESAB in the 2nd quarter worth about $524,533,000. Bank of New York Mellon Corp purchased a new position in shares of ESAB during the 2nd quarter valued at about $94,210,000. Norges Bank purchased a new position in shares of ESAB during the 4th quarter valued at about $85,692,000. Capital Research Global Investors bought a new stake in ESAB in the 4th quarter worth approximately $69,099,000. Finally, TimesSquare Capital Management LLC bought a new stake in ESAB in the 2nd quarter worth approximately $56,678,000. 91.13% of the stock is currently owned by hedge funds and other institutional investors.

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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