ESAB (NYSE:ESAB) Stock Price Down 7.3% - Here's Why

Key Points

• ESAB shares fell 7.3% to $66.68 in Monday trading, with volume about 53% below the average session level.
• Analysts remain broadly positive, with seven Buy ratings and one Hold rating and a consensus price target of $135.57, despite several firms recently lowering their targets.
• The company slightly missed quarterly EPS estimates at $1.33 versus $1.37, although revenue rose 12.9% year over year to $807.63 million; ESAB maintained fiscal 2026 EPS guidance of $5.40–$5.50 and declared a $0.12 quarterly dividend.

Shares of ESAB Corporation (NYSE:ESAB - Get Free Report) fell 7.3% during trading on Monday. The stock traded as low as $66.39 and last traded at $66.68. Approximately 316,577 shares were traded during mid-day trading, a decline of 53% from the average session volume of 671,434 shares. The stock had previously closed at $71.91.

Analysts Set New Price Targets

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

ESAB Stock Performance

The firm has a market capitalization of $4.19 billion, a P/E ratio of 24.10, a P/E/G ratio of 1.13 and a beta of 1.17. The stock has a fifty day simple moving average of $79.23 and a two-hundred day simple moving average of $90.16. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.96 and a quick ratio of 1.22.

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 the consensus estimate of $1.37 by ($0.04). The business had revenue of $807.63 million during the quarter, compared to analyst estimates of $755.64 million. ESAB had a net margin of 5.75% and a return on equity of 14.48%. ESAB's quarterly revenue was up 12.9% compared to the same quarter last year. During the same period last year, the firm posted $1.36 earnings per share. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. On average, research analysts predict that ESAB Corporation will post 5.46 EPS for the current year.

ESAB Dividend Announcement

The business also recently declared 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 is Friday, October 2nd. ESAB's dividend payout ratio (DPR) is presently 17.20%.

Insiders Place Their Bets

In other ESAB news, Director Rhonda L. Jordan sold 1,000 shares of ESAB 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 completion of the sale, the director directly owned 1,000 shares of the company's stock, valued at approximately $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 SEC, which is accessible through this hyperlink. Company insiders own 7.20% of the company's stock.

Hedge Funds Weigh In On ESAB

Institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in ESAB in the second quarter valued at approximately $524,533,000. Bank of New York Mellon Corp acquired a new position in shares of ESAB during the second quarter worth approximately $94,210,000. Norges Bank bought a new position in shares of ESAB in the 4th quarter worth $85,692,000. Capital Research Global Investors bought a new position in shares of ESAB in the 4th quarter worth $69,099,000. Finally, TimesSquare Capital Management LLC acquired a new stake in ESAB in the 2nd quarter valued at $56,678,000. Institutional investors own 91.13% of the company's stock.

ESAB Company Profile

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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