ESAB Corporation (NYSE:ESAB) to Issue Dividend Increase – $0.12 Per Share

ESAB Corporation (NYSE:ESAB) declared a quarterly dividend on Friday, May 8th. Stockholders of record on Friday, July 3rd will be given a dividend of 0.12 per share on Friday, July 17th. This represents a c) dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, July 2nd. This is a 20.0% increase from ESAB’s previous quarterly dividend of $0.10.

ESAB has a payout ratio of 8.3% meaning its dividend is sufficiently covered by earnings. Equities analysts expect ESAB to earn $6.62 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 7.3%.

ESAB Price Performance

ESAB stock opened at $97.69 on Tuesday. The business has a 50 day moving average price of $95.93 and a 200 day moving average price of $107.48. The stock has a market cap of $5.95 billion, a price-to-earnings ratio of 28.90, a PEG ratio of 1.84 and a beta of 1.19. ESAB has a fifty-two week low of $82.18 and a fifty-two week high of $137.42. The company has a quick ratio of 2.26, a current ratio of 2.97 and a debt-to-equity ratio of 0.91.

ESAB (NYSE:ESAB) last announced its quarterly earnings results on Thursday, May 7th. The company reported $1.31 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.32 by ($0.01). ESAB had a net margin of 7.11% and a return on equity of 15.04%. The business had revenue of $745.60 million during the quarter, compared to analyst estimates of $706.74 million. During the same period last year, the company earned $1.25 earnings per share. The business’s revenue for the quarter was up 10.0% compared to the same quarter last year. Equities research analysts anticipate that ESAB will post 5.82 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on ESAB. DA Davidson began coverage on shares of ESAB in a report on Monday, June 15th. They issued a “buy” rating and a $130.00 target price for the company. Jefferies Financial Group reissued a “buy” rating and issued a $130.00 price target (down from $150.00) on shares of ESAB in a research report on Tuesday, March 31st. Wall Street Zen lowered ESAB from a “buy” rating to a “hold” rating in a report on Saturday, March 21st. JPMorgan Chase & Co. cut their target price on ESAB from $148.00 to $135.00 and set an “overweight” rating on the stock in a research report on Friday, April 10th. Finally, Weiss Ratings downgraded ESAB from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, April 27th. Eight analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $138.38.

ESAB Company Profile

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.