ESAB (NYSE:ESAB) Hits New 1-Year Low After Analyst Downgrade

ESAB Corporation (NYSE:ESAB)’s share price hit a new 52-week low during mid-day trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $125.00 to $95.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. ESAB traded as low as $63.29 and last traded at $63.6410, with a volume of 123,460 shares traded. The stock had previously closed at $67.12.

ESAB has been the topic of several other research reports. Roth Capital restated a “buy” rating and set a $133.00 price objective (down from $151.00) on shares of ESAB in a report on Tuesday, September 15th. Oppenheimer decreased their target price on shares of ESAB from $140.00 to $135.00 and set an “outperform” rating for the company in a report on Tuesday, July 21st. DA Davidson started coverage on shares of ESAB in a research report on Monday, June 15th. They issued a “buy” rating and a $130.00 target price on the stock. Stifel Nicolaus reduced their price target on shares of ESAB from $141.00 to $137.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Finally, Weiss Ratings lowered shares of ESAB from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, August 11th. Seven analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $129.86.

Insiders Place Their Bets

In other news, Director Rhonda L. Jordan sold 1,000 shares of the company’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $95.00, for a total value of $95,000.00. Following the transaction, the director owned 1,000 shares in the company, valued at $95,000. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 7.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On ESAB

A number of institutional investors have recently modified their holdings of the stock. HB Wealth Management LLC increased its stake in shares of ESAB by 5.0% in the first quarter. HB Wealth Management LLC now owns 2,479 shares of the company’s stock worth $240,000 after acquiring an additional 118 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in ESAB by 25.5% during the first quarter. EverSource Wealth Advisors LLC now owns 865 shares of the company’s stock valued at $84,000 after purchasing an additional 176 shares during the last quarter. State of Michigan Retirement System grew its stake 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 purchasing an additional 200 shares in the last quarter. Oregon Public Employees Retirement Fund increased its position in ESAB by 2.6% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 11,744 shares of the company’s stock worth $1,135,000 after purchasing an additional 300 shares during the last quarter. Finally, Dynamic Advisor Solutions LLC increased its position in ESAB by 3.0% in the 2nd quarter. Dynamic Advisor Solutions LLC now owns 11,137 shares of the company’s stock worth $1,098,000 after purchasing an additional 328 shares during the last quarter. Institutional investors and hedge funds own 91.13% of the company’s stock.

ESAB Price Performance

The stock has a 50 day moving average price of $75.70 and a two-hundred day moving average price of $87.96. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.22 and a current ratio of 1.96. The company has a market capitalization of $4.17 billion, a PE ratio of 24.02, a P/E/G ratio of 1.02 and a beta of 1.19.

ESAB (NYSE:ESAB) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.33 EPS for the quarter, missing the consensus estimate of $1.37 by ($0.04). ESAB had a net margin of 5.75% and a return on equity of 14.48%. The firm had revenue of $807.63 million during the quarter, compared to the consensus estimate of $755.64 million. During the same period in the previous year, the firm posted $1.36 EPS. The company’s quarterly revenue was up 12.9% compared to the same quarter last year. ESAB has set its FY 2026 guidance at 5.400-5.500 EPS. Equities analysts forecast that ESAB Corporation will post 5.46 earnings per share for the current year.

ESAB Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 16th. Stockholders of record on Friday, October 2nd will be paid a dividend of $0.12 per share. The ex-dividend date is Friday, October 2nd. This represents a $0.48 annualized dividend and a dividend yield of 0.7%. ESAB’s dividend payout ratio is 17.20%.

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.