Lincoln Electric (NASDAQ:LECO) Trading Down 6.7% - Here's Why

Key Points

• Lincoln Electric shares fell 6.7% to about $253.25 in midday trading, with volume down 70% from the average. The stock remains below its 50-day moving average of $268.51.
• Despite the selloff, analyst sentiment remains positive: the stock carries a “Moderate Buy” consensus rating and a $307.22 average price target, implying potential upside.
• The company recently exceeded quarterly expectations, reporting $2.93 in EPS and $1.22 billion in revenue, while also declaring a quarterly dividend of $0.79 per share.

Lincoln Electric Holdings, Inc. (NASDAQ:LECO - Get Free Report)'s stock price was down 6.7% during mid-day trading on Thursday . The stock traded as low as $252.16 and last traded at $253.2520. 112,823 shares traded hands during trading, a decline of 70% from the average daily volume of 379,869 shares. The stock had previously closed at $271.52.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Wall Street Zen raised Lincoln Electric from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. UBS Group began coverage on Lincoln Electric in a report on Monday, August 10th. They issued a "buy" rating and a $340.00 price target for the company. DA Davidson started coverage on shares of Lincoln Electric in a report on Tuesday, June 16th. They set a "buy" rating and a $320.00 price objective on the stock. Weiss Ratings raised shares of Lincoln Electric from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, July 10th. Finally, Morgan Stanley upgraded shares of Lincoln Electric from an "underweight" rating to an "equal weight" rating and upped their price objective for the company from $257.00 to $283.00 in a research note on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $307.22.

Lincoln Electric Stock Down 8.3%

The business's fifty day moving average price is $268.51 and its 200 day moving average price is $264.93. The firm has a market capitalization of $13.57 billion, a price-to-earnings ratio of 24.81, a PEG ratio of 1.66 and a beta of 1.21. The company has a current ratio of 1.98, a quick ratio of 1.20 and a debt-to-equity ratio of 0.74.

Lincoln Electric (NASDAQ:LECO - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The industrial products company reported $2.93 earnings per share for the quarter, topping analysts' consensus estimates of $2.81 by $0.12. The firm had revenue of $1.22 billion during the quarter, compared to analysts' expectations of $1.17 billion. Lincoln Electric had a net margin of 12.35% and a return on equity of 39.23%. Lincoln Electric's quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.60 EPS. On average, equities analysts expect that Lincoln Electric Holdings, Inc. will post 11.16 EPS for the current year.

Lincoln Electric Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be issued a dividend of $0.79 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.3%. Lincoln Electric's dividend payout ratio (DPR) is currently 31.57%.

Insider Transactions at Lincoln Electric

In other Lincoln Electric news, EVP Michael Whitehead sold 845 shares of the company's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $274.81, for a total transaction of $232,214.45. Following the completion of the sale, the executive vice president directly owned 9,319 shares of the company's stock, valued at $2,560,954.39. This represents a 8.31% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 1.68% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lincoln Electric

Several large investors have recently modified their holdings of the stock. Earned Wealth Advisors LLC increased its stake in Lincoln Electric by 3.8% in the 1st quarter. Earned Wealth Advisors LLC now owns 1,177 shares of the industrial products company's stock valued at $293,000 after buying an additional 43 shares during the period. Hilltop Holdings Inc. lifted its stake in shares of Lincoln Electric by 2.5% in the 4th quarter. Hilltop Holdings Inc. now owns 1,832 shares of the industrial products company's stock worth $439,000 after acquiring an additional 45 shares during the period. Parallel Advisors LLC lifted its stake in shares of Lincoln Electric by 9.4% in the 1st quarter. Parallel Advisors LLC now owns 606 shares of the industrial products company's stock worth $151,000 after acquiring an additional 52 shares during the period. Sumitomo Life Insurance Co. boosted its holdings in shares of Lincoln Electric by 1.2% in the fourth quarter. Sumitomo Life Insurance Co. now owns 4,314 shares of the industrial products company's stock valued at $1,034,000 after acquiring an additional 52 shares in the last quarter. Finally, Jackson Thornton Wealth Management LLC boosted its holdings in shares of Lincoln Electric by 4.6% in the first quarter. Jackson Thornton Wealth Management LLC now owns 1,241 shares of the industrial products company's stock valued at $318,000 after acquiring an additional 55 shares in the last quarter. Hedge funds and other institutional investors own 79.61% of the company's stock.

About Lincoln Electric

Lincoln Electric Holdings, Inc NASDAQ: LECO is a Cleveland, Ohio-based manufacturer of welding, cutting and automation products. Founded in 1895 by John C. Lincoln, the company serves industrial, construction, energy, transportation and other end markets that use fabrication and joining technologies.

Its product portfolio includes arc-welding machines, welding consumables such as electrodes and wire, plasma and oxyfuel cutting equipment, robotic welding systems, and related automation solutions.

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