Short Interest in Lincoln Electric Holdings, Inc. (NASDAQ:LECO) Expands By 62.3%

Key Points

• Short interest jumped 62.3% in March to 937,435 shares (about 1.7% of shares outstanding), with a days-to-cover ratio of roughly 2.7 days, signaling increased bearish positioning.
• Analysts are split—four Buy, four Hold and one Sell—leaving a consensus rating of Hold and a consensus price target of $291.14 after several recent target revisions.
• Fundamentals and shareholder returns: Lincoln Electric beat quarterly EPS estimates ($2.65 vs. $2.53), posted 5.5% revenue growth year-over-year, and announced a $0.79 quarterly dividend ($3.16 annual, ~1.2% yield); institutional investors own about 79.6% of the stock.

Lincoln Electric Holdings, Inc. (NASDAQ:LECO - Get Free Report) was the recipient of a significant increase in short interest in the month of March. As of March 31st, there was short interest totaling 937,435 shares, an increase of 62.3% from the March 15th total of 577,622 shares. Currently, 1.7% of the shares of the stock are sold short. Based on an average daily volume of 346,519 shares, the days-to-cover ratio is currently 2.7 days.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on LECO shares. Morgan Stanley upped their price target on shares of Lincoln Electric from $240.00 to $247.00 and gave the stock an "underweight" rating in a report on Monday, March 30th. Roth Mkm reaffirmed a "buy" rating and issued a $297.00 price target (up from $285.00) on shares of Lincoln Electric in a report on Tuesday, February 3rd. Barclays decreased their price target on shares of Lincoln Electric from $310.00 to $280.00 and set an "overweight" rating on the stock in a report on Wednesday, April 1st. Weiss Ratings cut Lincoln Electric from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, March 31st. Finally, Stifel Nicolaus reduced their target price on Lincoln Electric from $300.00 to $264.00 and set a "hold" rating on the stock in a research note on Wednesday, April 8th. Four investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $291.14.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Rockefeller Capital Management L.P. grew its stake in shares of Lincoln Electric by 72.2% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,156 shares of the industrial products company's stock valued at $517,000 after buying an additional 904 shares during the last quarter. World Investment Advisors grew its stake in shares of Lincoln Electric by 6.9% during the fourth quarter. World Investment Advisors now owns 3,748 shares of the industrial products company's stock valued at $898,000 after buying an additional 243 shares during the last quarter. Corient Private Wealth LLC grew its stake in shares of Lincoln Electric by 252.1% during the fourth quarter. Corient Private Wealth LLC now owns 8,293 shares of the industrial products company's stock valued at $1,988,000 after buying an additional 5,938 shares during the last quarter. Midway Capital Research & Management bought a new position in shares of Lincoln Electric during the fourth quarter valued at about $2,468,000. Finally, Tempo Wealth LLC bought a new position in shares of Lincoln Electric during the fourth quarter valued at about $988,000. 79.61% of the stock is owned by institutional investors.

Lincoln Electric Price Performance

LECO traded up $3.89 during trading on Monday, reaching $260.15. The stock had a trading volume of 337,001 shares, compared to its average volume of 386,445. The stock has a market cap of $14.26 billion, a PE ratio of 27.91, a PEG ratio of 1.59 and a beta of 1.28. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.16 and a current ratio of 1.82. Lincoln Electric has a one year low of $169.69 and a one year high of $310.00. The business has a 50-day moving average of $269.47 and a 200-day moving average of $251.46.

Lincoln Electric (NASDAQ:LECO - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The industrial products company reported $2.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.53 by $0.12. Lincoln Electric had a return on equity of 39.35% and a net margin of 12.30%.The firm had revenue of $1.08 billion for the quarter, compared to analysts' expectations of $1.09 billion. During the same period last year, the firm earned $2.57 earnings per share. The company's revenue for the quarter was up 5.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Lincoln Electric will post 9.36 EPS for the current fiscal year.

Lincoln Electric Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be paid a dividend of $0.79 per share. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Lincoln Electric's dividend payout ratio (DPR) is 33.91%.

Lincoln Electric Company Profile

Lincoln Electric Holdings, Inc NASDAQ: LECO is a global manufacturer and distributor of welding products, robotic welding systems, plasma and oxyfuel cutting equipment, and surface treatment systems. The company's portfolio encompasses welding consumables such as electrodes and wires, as well as power sources, torches, and automated welding cells. Lincoln Electric also offers software solutions and training services designed to optimize productivity and quality in fabrication and manufacturing operations.

Founded in 1895 by John C.

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