ESAB (NYSE:ESAB) Reaches New 1-Year Low – Time to Sell?

ESAB Corporation (NYSE:ESAB)’s share price hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $83.09 and last traded at $82.74, with a volume of 686551 shares changing hands. The stock had previously closed at $88.48.

Analysts Set New Price Targets

Several brokerages have recently issued reports on ESAB. JPMorgan Chase & Co. reduced their price target on ESAB from $148.00 to $135.00 and set an “overweight” rating for the company in a report on Friday, April 10th. Wall Street Zen lowered ESAB from a “buy” rating to a “hold” rating in a report on Saturday, March 21st. Stifel Nicolaus set a $141.00 price objective on ESAB in a research note on Friday, May 8th. Roth Mkm set a $142.00 price objective on ESAB in a research note on Thursday, April 16th. Finally, Weiss Ratings downgraded ESAB from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, April 27th. Eight analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, ESAB has an average rating of “Moderate Buy” and an average price target of $139.88.

ESAB Price Performance

The stock has a 50 day moving average of $96.04 and a two-hundred day moving average of $108.41. The company has a debt-to-equity ratio of 0.91, a quick ratio of 2.26 and a current ratio of 2.97. The firm has a market capitalization of $5.57 billion, a P/E ratio of 27.06, a P/E/G ratio of 1.52 and a beta of 1.19.

ESAB (NYSE:ESAB) last issued its quarterly earnings data on Thursday, May 7th. The company reported $1.31 earnings per share for the quarter, missing analysts’ consensus estimates of $1.32 by ($0.01). ESAB had a net margin of 7.11% and a return on equity of 15.04%. The company had revenue of $745.60 million during the quarter, compared to the consensus estimate of $706.74 million. During the same period in the previous year, the business posted $1.25 earnings per share. The firm’s revenue was up 10.0% on a year-over-year basis. Sell-side analysts predict that ESAB Corporation will post 5.81 earnings per share for the current fiscal year.

ESAB Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 17th. Shareholders of record on Friday, July 3rd will be given a $0.12 dividend. The ex-dividend date of this dividend is Thursday, July 2nd. This represents a $0.48 annualized dividend and a yield of 0.5%. This is an increase from ESAB’s previous quarterly dividend of $0.10. ESAB’s dividend payout ratio (DPR) is presently 11.83%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Oppenheimer & Co. Inc. bought a new position in ESAB in the 3rd quarter worth approximately $1,126,000. Teacher Retirement System of Texas increased its position in ESAB by 33.9% in the 4th quarter. Teacher Retirement System of Texas now owns 177,428 shares of the company’s stock worth $19,822,000 after buying an additional 44,877 shares during the period. Confluence Investment Management LLC bought a new position in ESAB in the 4th quarter worth approximately $998,000. Defender Capital LLC. bought a new position in ESAB in the 4th quarter worth approximately $3,977,000. Finally, Schwartz Investment Counsel Inc. bought a new position in ESAB in the 4th quarter worth approximately $8,938,000. 91.13% of the stock is owned by institutional investors.

About ESAB

ESAB Corporation is a global leader in welding, cutting and gas control technologies, offering a comprehensive portfolio of equipment, consumables and automation solutions. The company’s products include welding power sources, cutting machines, torches, electrodes, filler metals and gas regulating equipment designed to meet the needs of diverse industries. ESAB serves sectors such as construction, shipbuilding, automotive, energy, infrastructure and manufacturing, providing both standard and customized solutions to enhance productivity and quality in metal fabrication and processing.

Founded in 1904 by Swedish inventor Oscar Kjellberg, ESAB pioneered the development of coated welding electrodes, laying the groundwork for modern welding practices.