ESAB (NYSE:ESAB) Stock Falls 7.3% – Here’s What Happened

ESAB Corporation (NYSE:ESAB)’s share price dropped 7.3% on Monday. The company traded as low as $66.39 and last traded at $66.68. Approximately 316,577 shares were traded during mid-day trading, a decline of 53% from the average daily volume of 671,434 shares. The stock had previously closed at $71.91.

Analysts Set New Price Targets

Several research firms have recently commented on ESAB. Roth Capital reissued a “buy” rating and set a $133.00 target price (down from $151.00) on shares of ESAB in a research report on Tuesday, September 15th. Weiss Ratings cut shares of ESAB from a “hold (c)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. Stifel Nicolaus cut their price target on ESAB from $141.00 to $137.00 and set a “buy” rating for the company in a research note on Monday, July 20th. DA Davidson initiated coverage on ESAB in a report on Monday, June 15th. They set a “buy” rating and a $130.00 price objective for the company. Finally, Oppenheimer lowered their price objective on ESAB from $140.00 to $135.00 and set an “outperform” rating for the company in a research note on Tuesday, July 21st. Seven research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $135.57.

ESAB Stock Performance

The company’s 50-day simple moving average is $79.23 and its 200 day simple moving average is $90.16. The company has a current ratio of 1.96, a quick ratio of 1.22 and a debt-to-equity ratio of 0.99. The stock has a market cap of $4.19 billion, a P/E ratio of 24.10, a PEG ratio of 1.13 and a beta of 1.17.

ESAB (NYSE:ESAB) last released its earnings results 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 business had revenue of $807.63 million during the quarter, compared to the consensus estimate of $755.64 million. ESAB had a net margin of 5.75% and a return on equity of 14.48%. The business’s revenue was up 12.9% on a year-over-year basis. During the same period 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. As a group, sell-side analysts expect that ESAB Corporation will post 5.46 EPS for the current fiscal year.

ESAB Dividend Announcement

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

Insider Transactions at ESAB

In other ESAB news, Director Rhonda L. Jordan sold 1,000 shares of the company’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $95.00, for a total value of $95,000.00. Following the completion of 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 through the SEC website. 7.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On ESAB

A number of hedge funds have recently made changes to their positions in the business. Bank of America Corp DE bought a new position in ESAB during the second quarter valued at $22,938,000. Medina Value Partners LLC purchased a new stake in ESAB in the second quarter worth $22,234,753. Walleye Capital LLC raised its stake in shares of ESAB by 506.4% in the first quarter. Walleye Capital LLC now owns 30,399 shares of the company’s stock valued at $2,938,000 after buying an additional 25,386 shares during the period. Stanley Capital Management LLC purchased a new position in shares of ESAB during the 2nd quarter valued at $11,175,000. Finally, Tidal Investments LLC purchased a new position in shares of ESAB during the 2nd quarter valued at $2,195,000. 91.13% of the stock is currently owned by institutional investors.

ESAB Company Profile

ESAB Corporation (NYSE: ESAB) is a global provider of welding and cutting technologies. The company develops and manufactures welding equipment, welding consumables, cutting systems, automation solutions and related accessories used in industrial, commercial and maintenance applications.

Its product portfolio includes arc-welding equipment, electrodes and welding wires, gas and plasma cutting systems, robotic and automated welding solutions, and digital tools designed to improve fabrication processes.