ESAB (NYSE:ESAB) Stock Falls 7.2% – What’s Next?
by Renee Jackson · The Cerbat GemESAB Corporation (NYSE:ESAB – Get Free Report)’s share price was down 7.2% during mid-day trading on Wednesday. The company traded as low as $67.27 and last traded at $66.6550. Approximately 142,122 shares were traded during mid-day trading, a decline of 79% from the average session volume of 685,024 shares. The stock had previously closed at $71.83.
Analyst Upgrades and Downgrades
A number of research firms recently weighed in on ESAB. JPMorgan Chase & Co. lowered their price target on ESAB from $125.00 to $95.00 and set an “overweight” rating on the stock in a report on Thursday. Weiss Ratings downgraded ESAB from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. Stifel Nicolaus dropped their price target on ESAB from $141.00 to $137.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Roth Capital reaffirmed a “buy” rating and set a $133.00 price target (down from $151.00) on shares of ESAB in a research note on Tuesday, September 15th. Finally, Oppenheimer lowered their price objective on shares of ESAB from $140.00 to $135.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 21st. Seven analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, ESAB has an average rating of “Moderate Buy” and a consensus target price of $129.86.
Check Out Our Latest Stock Analysis on ESAB
ESAB Stock Down 3.4%
The company has a market cap of $4.03 billion, a PE ratio of 23.25, a P/E/G ratio of 1.05 and a beta of 1.19. The firm has a 50-day simple moving average of $76.09 and a two-hundred day simple moving average of $88.11. 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 data 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 company had revenue of $807.63 million during the quarter, compared to analysts’ expectations of $755.64 million. ESAB had a net margin of 5.75% and a return on equity of 14.48%. The firm’s revenue was up 12.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.36 earnings per share. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. Research analysts anticipate that ESAB Corporation will post 5.46 earnings per share for the current fiscal year.
ESAB Announces Dividend
The company also recently declared a quarterly dividend, which will be paid on Friday, October 16th. Shareholders of record on Friday, October 2nd will be paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Friday, October 2nd. ESAB’s dividend payout ratio (DPR) is currently 17.20%.
Insider Transactions at ESAB
In other ESAB news, Director Rhonda L. Jordan sold 1,000 shares of ESAB stock in a transaction that occurred 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 7.20% of the company’s stock.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently modified their holdings of the stock. HB Wealth Management LLC grew its position in shares of ESAB by 5.0% during the first quarter. HB Wealth Management LLC now owns 2,479 shares of the company’s stock worth $240,000 after buying an additional 118 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in ESAB by 25.5% in the first quarter. EverSource Wealth Advisors LLC now owns 865 shares of the company’s stock valued at $84,000 after acquiring an additional 176 shares in the last quarter. State of Michigan Retirement System raised its holdings in ESAB by 1.5% in the first quarter. State of Michigan Retirement System now owns 13,702 shares of the company’s stock valued at $1,324,000 after acquiring an additional 200 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its stake in ESAB by 2.6% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 11,744 shares of the company’s stock valued at $1,135,000 after acquiring an additional 300 shares during the last quarter. Finally, Dynamic Advisor Solutions LLC grew its holdings in ESAB by 3.0% during the 2nd quarter. Dynamic Advisor Solutions LLC now owns 11,137 shares of the company’s stock worth $1,098,000 after acquiring an additional 328 shares in the last quarter. Institutional investors and hedge funds own 91.13% of the company’s stock.
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.