ESAB (NYSE:ESAB) Reaches New 12-Month Low - Here's Why

Key Points

• ESAB shares hit a new 52-week low, falling 2.3% to about $73.58 and trading well below their 50-day and 200-day moving averages.
• Despite recent price-target cuts and a quarterly EPS miss, analysts maintain a “Moderate Buy” consensus with an average target of $138.14, significantly above the current share price.
• Quarterly revenue rose 12.9% year over year to $807.6 million, exceeding estimates, while institutional investors own a substantial 91.13% of outstanding shares.

ESAB Corporation (NYSE:ESAB - Get Free Report)'s share price hit a new 52-week low on Wednesday . The company traded as low as $73.21 and last traded at $73.5760, with a volume of 9225 shares traded. The stock had previously closed at $74.74.

Wall Street Analyst Weigh In

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

ESAB Trading Down 2.3%

The business has a 50 day moving average of $85.01 and a two-hundred day moving average of $94.94. 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 firm has a market capitalization of $4.54 billion, a price-to-earnings ratio of 26.19, a P/E/G ratio of 1.46 and a beta of 1.17.

ESAB (NYSE:ESAB - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $1.33 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 firm had revenue of $807.63 million during the quarter, compared to analyst estimates of $755.64 million. During the same period last year, the business posted $1.36 EPS. The company's revenue was up 12.9% on a year-over-year basis. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. Equities analysts predict that ESAB Corporation will post 5.46 EPS for the current year.

Insiders Place Their Bets

In other ESAB news, Director Rhonda L. Jordan sold 1,000 shares of the firm's stock in a transaction 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 transaction, the director directly owned 1,000 shares of the company's stock, valued at approximately $95,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 7.20% of the company's stock.

Institutional Investors Weigh In On ESAB

Several hedge funds and other institutional investors have recently made changes to their positions in ESAB. Nykredit A S bought a new position in ESAB in the 2nd quarter valued at about $197,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of ESAB in the second quarter valued at approximately $365,000. California State Teachers Retirement System boosted its position in shares of 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 valued at $616,417,000 after buying an additional 6,182,431 shares during the last quarter. HB Wealth Management LLC grew its holdings 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 in the last quarter. Finally, AlphaGrep UK Ltd purchased a new stake in ESAB in the 2nd quarter valued at $247,000. 91.13% of the stock is owned by institutional investors.

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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