Lincoln Electric (NASDAQ:LECO) Trading Down 6.7% – Here’s Why

Lincoln Electric Holdings, Inc. (NASDAQ:LECO) fell 6.7% during mid-day trading on Thursday . The stock traded as low as $252.16 and last traded at $253.2520. Approximately 112,823 shares traded hands during trading, a decline of 70% from the average daily volume of 379,869 shares. The stock had previously closed at $271.52.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the company. Morgan Stanley raised Lincoln Electric from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $257.00 to $283.00 in a research note on Monday, August 10th. DA Davidson assumed coverage on Lincoln Electric in a report on Tuesday, June 16th. They issued a “buy” rating and a $320.00 target price for the company. UBS Group assumed coverage on shares of Lincoln Electric in a research report on Monday, August 10th. They set a “buy” rating and a $340.00 target price on the stock. Wall Street Zen raised shares of Lincoln Electric from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, Weiss Ratings upgraded shares of Lincoln Electric from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, July 10th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $307.22.

Lincoln Electric Trading Down 8.3%

The firm has a market cap of $13.57 billion, a price-to-earnings ratio of 24.81, a PEG ratio of 1.66 and a beta of 1.21. The business has a fifty day moving average of $268.51 and a two-hundred day moving average of $264.93. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.20 and a current ratio of 1.98.

Lincoln Electric (NASDAQ:LECO) last issued its quarterly earnings data on Thursday, July 30th. The industrial products company reported $2.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.81 by $0.12. The firm had revenue of $1.22 billion during the quarter, compared to analysts’ expectations of $1.17 billion. Lincoln Electric had a return on equity of 39.23% and a net margin of 12.35%.Lincoln Electric’s revenue was up 12.0% on a year-over-year basis. During the same period in the previous year, the firm posted $2.60 earnings per share. As a group, equities analysts expect that Lincoln Electric Holdings, Inc. will post 11.16 earnings per share for the current fiscal year.

Lincoln Electric Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be given a $0.79 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.3%. Lincoln Electric’s dividend payout ratio (DPR) is currently 31.57%.

Insider Activity

In related news, EVP Michael Whitehead sold 845 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $274.81, for a total value of $232,214.45. Following the sale, the executive vice president directly owned 9,319 shares in the company, valued at $2,560,954.39. The trade was a 8.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.68% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lincoln Electric

Several hedge funds have recently added to or reduced their stakes in LECO. Tidal Investments LLC lifted its holdings in shares of Lincoln Electric by 31.1% in the second quarter. Tidal Investments LLC now owns 1,163 shares of the industrial products company’s stock valued at $309,000 after purchasing an additional 276 shares in the last quarter. NewEdge Advisors LLC lifted its stake in Lincoln Electric by 403.4% in the 2nd quarter. NewEdge Advisors LLC now owns 21,388 shares of the industrial products company’s stock valued at $5,679,000 after buying an additional 17,139 shares in the last quarter. Allworth Financial LP grew its holdings in Lincoln Electric by 20.1% during the 2nd quarter. Allworth Financial LP now owns 5,565 shares of the industrial products company’s stock valued at $1,478,000 after buying an additional 933 shares during the last quarter. Nykredit A S acquired a new stake in Lincoln Electric during the 2nd quarter valued at $578,000. Finally, VELA Investment Management LLC increased its position in Lincoln Electric by 0.3% during the second quarter. VELA Investment Management LLC now owns 34,079 shares of the industrial products company’s stock worth $9,048,000 after buying an additional 111 shares in the last quarter. 79.61% of the stock is currently owned by hedge funds and other institutional investors.

Lincoln Electric Company Profile

Lincoln Electric Holdings, Inc (NASDAQ: LECO) is a Cleveland, Ohio-based manufacturer of welding, cutting and automation products. Founded in 1895 by John C. Lincoln, the company serves industrial, construction, energy, transportation and other end markets that use fabrication and joining technologies.

Its product portfolio includes arc-welding machines, welding consumables such as electrodes and wire, plasma and oxyfuel cutting equipment, robotic welding systems, and related automation solutions.