Shares of ESAB Corporation (NYSE:ESAB) have received a consensus recommendation of “Moderate Buy” from analysts, according to Marketbeat.com. Currently, nine ratings firms cover the company, with three analysts assigning a hold rating and six recommending a buy. The average price target for the stock over the next year is set at $141.50.
Analysts’ reports have varied in their assessments of ESAB. Notably, Wall Street Zen downgraded the stock from a buy to a hold on December 28, 2023. In contrast, JPMorgan Chase & Co. raised its target price from $138.00 to $140.00, maintaining an “overweight” rating on October 30, 2023. Similarly, Stifel Nicolaus increased its price target from $141.00 to $143.00 and affirmed a buy rating on December 16, 2023. UBS Group also raised its price objective from $147.00 to $149.00, reiterating a buy rating on October 20, 2023.
Recent Earnings Performance
ESAB published its latest earnings report on October 29, 2023, revealing earnings per share (EPS) of $1.32 for the quarter, surpassing the consensus estimate of $1.27 by $0.05. The company noted a return on equity of 15.93% and a net profit margin of 8.70%. Revenues reached $727.85 million, significantly exceeding analysts’ expectations of $663.57 million. This represents an 8.1% increase in quarterly revenue compared to the same period last year. Looking ahead, ESAB has set its fiscal year 2025 guidance at $5.20-$5.30 EPS, while analysts anticipate an EPS of $5.16 for the current fiscal year.
Dividend Announcement and Institutional Interest
In addition to its earnings report, ESAB announced a quarterly dividend of $0.10 per share, payable on January 16, 2024, to investors of record by December 31, 2023. This equates to an annualized dividend of $0.40 and yields 0.4%. The ex-dividend date is also set for December 31, 2023, with a payout ratio of 10.08%.
Several institutional investors have recently adjusted their positions in ESAB. First Citizens Bank & Trust Co. increased its stake by 266% in the second quarter, now holding 7,861 shares valued at approximately $948,000. Advantage Alpha Capital Partners LP grew its position by 56.4%, acquiring 26,644 shares worth $3.2 million. Additionally, Daiwa Securities Group Inc. raised its holdings by 82.1%, bringing its total to 39,739 shares valued at about $4.79 million.
As of now, institutional investors and hedge funds own approximately 91.13% of ESAB’s stock, reflecting strong interest from larger financial entities.
Founded in 1904 by Swedish inventor Oscar Kjellberg, ESAB Corporation is a leader in welding, cutting, and gas control technologies, providing a range of equipment and solutions that cater to various industries, including construction, automotive, and manufacturing.
