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

Key Points

• ESAB shares fell to a new 52-week low of $63.29, well below their 50-day and 200-day moving averages of $76.51 and $88.31, respectively.
• Several analysts recently lowered their price targets, although the stock retains a “Moderate Buy” consensus rating from seven Buy ratings and one Hold, with an average target of $135.57.
• ESAB’s latest quarterly EPS of $1.33 missed estimates of $1.37, despite revenue rising 12.9% year over year to $807.63 million; the company also declared a quarterly dividend of $0.12 per share.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) reached a new 52-week low during trading on Thursday. The company traded as low as $63.29 and last traded at $63.6410, with a volume of 123460 shares trading hands. The stock had previously closed at $67.12.

Analyst Ratings Changes

A number of brokerages recently issued reports on ESAB. Weiss Ratings lowered shares of ESAB from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. 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. Stifel Nicolaus dropped their price target 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. DA Davidson assumed coverage on shares of ESAB in a research note on Monday, June 15th. They issued a "buy" rating and a $130.00 price target for the company. Finally, Roth Capital restated a "buy" rating and set a $133.00 price target (down from $151.00) on shares of ESAB in a report on Tuesday, September 15th. Seven equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $135.57.

ESAB Stock Performance

The firm has a fifty day simple moving average of $76.51 and a 200-day simple moving average of $88.31. The company has a quick ratio of 1.22, a current ratio of 1.96 and a debt-to-equity ratio of 0.99. The company has a market cap of $3.98 billion, a PE ratio of 22.93, a price-to-earnings-growth ratio of 1.13 and a beta of 1.19.

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

ESAB Announces Dividend

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

Insider Transactions at ESAB

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 stock was sold at an average price of $95.00, for a total transaction of $95,000.00. Following the transaction, the director owned 1,000 shares in the company, valued at approximately $95,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 7.20% of the company's stock.

Institutional Trading of ESAB

A number of institutional investors have recently modified their holdings of ESAB. Global Retirement Partners LLC acquired a new stake in ESAB in the second quarter valued at $76,000. EverSource Wealth Advisors LLC grew its stake in shares of ESAB by 25.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 865 shares of the company's stock worth $84,000 after purchasing an additional 176 shares during the period. Ascentis Independent Advisors purchased a new position in shares of ESAB in the 1st quarter valued at about $105,000. Northwestern Mutual Wealth Management Co. purchased a new position in shares of ESAB in the 2nd quarter valued at about $151,000. Finally, Nykredit A S acquired a new stake in shares of ESAB in the second quarter valued at about $197,000. 91.13% of the stock is currently owned by hedge funds and other institutional investors.

ESAB Company Profile

ESAB Corporation NYSE: ESAB is a global provider of welding and cutting technologies. The company develops and manufactures equipment, consumable products and related solutions used to join, cut and protect metals in industrial, construction, infrastructure, transportation and other applications.

Its product portfolio includes welding systems, cutting machines, welding electrodes and wires, gas-control equipment, automation technologies, protective equipment and accessories. ESAB markets its products under brands that include ESAB, Victor, Tweco, Stoody and Thermal Dynamics, serving customers through direct sales, distributors and other channels.

The company traces its origins to 1904, when Swedish inventor Oscar Kjellberg developed a coated welding electrode.

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