ESAB (NYSE:ESAB) Stock Falls 7.2% - Here's What Happened

Key Points

• ESAB shares fell 7.2% to about $66.66, with trading volume down 79% from the average session. The stock is also trading well below its 50-day and 200-day moving averages.
• Analyst sentiment remains broadly positive: seven analysts rate ESAB a Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of $135.57, despite several recent target-price cuts.
• ESAB’s latest quarter showed mixed results: EPS of $1.33 missed estimates by $0.04, while revenue of $807.63 million exceeded forecasts and rose 12.9% year over year. The company also declared a quarterly dividend of $0.12 per share.

ESAB Corporation (NYSE:ESAB - Get Free Report)'s share price was down 7.2% during trading on Wednesday. The stock traded as low as $67.27 and last traded at $66.6550. Approximately 142,122 shares changed hands during trading, a decline of 79% from the average session volume of 685,024 shares. The stock had previously closed at $71.83.

Wall Street Analyst Weigh In

ESAB has been the subject of a number of research analyst reports. Roth Capital reiterated a "buy" rating and set a $133.00 price target (down from $151.00) on shares of ESAB in a research report on Tuesday, September 15th. DA Davidson started coverage on shares of ESAB in a research report on Monday, June 15th. They issued a "buy" rating and a $130.00 price objective on the stock. Stifel Nicolaus dropped their target price on shares of ESAB from $141.00 to $137.00 and set a "buy" rating for the company in a research report on Monday, July 20th. Oppenheimer cut their price target on shares of ESAB from $140.00 to $135.00 and set an "outperform" rating for the company in a research note on Tuesday, July 21st. Finally, Weiss Ratings lowered shares of ESAB from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, August 11th. Seven investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, ESAB currently has a consensus rating of "Moderate Buy" and a consensus target price of $135.57.

ESAB Stock Performance

The company has a debt-to-equity ratio of 0.99, a current ratio of 1.96 and a quick ratio of 1.22. The company has a 50 day simple moving average of $76.89 and a 200-day simple moving average of $88.53. The firm has a market cap of $4.18 billion, a PE ratio of 24.10, a price-to-earnings-growth ratio of 1.12 and a beta of 1.19.

ESAB (NYSE:ESAB - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $1.33 EPS for the quarter, missing the consensus estimate 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 analysts' expectations of $755.64 million. During the same period last year, the business posted $1.36 earnings per share. The company'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. As a group, equities research analysts anticipate that ESAB Corporation will post 5.46 EPS for the current year.

ESAB Announces Dividend

The firm also recently declared 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. 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 Activity

In other news, Director Rhonda L. Jordan sold 1,000 shares of ESAB stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $95.00, for a total value 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 7.20% of the company's stock.

Hedge Funds Weigh In On ESAB

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

About ESAB

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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