ESAB (NYSE:ESAB) Shares Gap Down – Time to Sell?

ESAB Corporation (NYSE:ESAB)’s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $88.03, but opened at $84.81. ESAB shares last traded at $83.4330, with a volume of 6,910 shares traded.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. DA Davidson cut their price target on ESAB from $146.00 to $142.00 and set a “buy” rating for the company in a report on Thursday, April 16th. Roth Mkm set a $142.00 price target on ESAB in a report on Thursday, April 16th. JPMorgan Chase & Co. cut 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. Stifel Nicolaus set a $141.00 price target on ESAB in a report on Friday, May 8th. Finally, Jefferies Financial Group restated a “buy” rating and set a $130.00 price target (down from $150.00) on shares of ESAB in a report on Tuesday, March 31st. Eight equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, ESAB currently has an average rating of “Moderate Buy” and an average target price of $139.88.

ESAB Price Performance

The firm has a market capitalization of $5.56 billion, a P/E ratio of 27.02, a price-to-earnings-growth ratio of 1.66 and a beta of 1.24. The firm has a 50 day moving average price of $98.13 and a 200-day moving average price of $110.58. The company has a current ratio of 2.97, a quick ratio of 2.26 and a debt-to-equity ratio of 0.91.

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

ESAB Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 17th. Stockholders of record on Friday, July 3rd will be paid a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Thursday, July 2nd. This is a positive change from ESAB’s previous quarterly dividend of $0.10. ESAB’s dividend payout ratio is 11.83%.

Insider Activity

In other news, CEO Shyam Kambeyanda sold 59,404 shares of the firm’s stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $123.79, for a total value of $7,353,621.16. Following the completion of the sale, the chief executive officer directly owned 99,864 shares of the company’s stock, valued at $12,362,164.56. This trade represents a 37.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 7.20% of the stock is owned by insiders.

Institutional Investors Weigh In On ESAB

Institutional investors and hedge funds have recently modified their holdings of the business. FNY Investment Advisers LLC bought a new stake in shares of ESAB during the 3rd quarter worth approximately $30,000. Los Angeles Capital Management LLC bought a new stake in shares of ESAB during the 4th quarter worth approximately $33,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of ESAB by 109.4% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 333 shares of the company’s stock worth $40,000 after acquiring an additional 174 shares during the last quarter. Smartleaf Asset Management LLC lifted its stake in shares of ESAB by 259.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 381 shares of the company’s stock worth $43,000 after acquiring an additional 275 shares during the last quarter. Finally, Global Retirement Partners LLC lifted its stake in shares of ESAB by 3,023.1% during the 4th quarter. Global Retirement Partners LLC now owns 406 shares of the company’s stock worth $45,000 after acquiring an additional 393 shares during the last quarter. 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.