Lincoln Electric (NASDAQ:LECO) was downgraded by Zacks Investment Research from a “buy” rating to a “sell” rating in a research note issued on Tuesday, Zacks.com reports. They currently have a $141.00 price target on the industrial products company’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 7.34% from the company’s previous close.
According to Zacks, “Lincoln Electric’s backlog at the end of the second quarter of 2021 was higher than pre-pandemic levels. Backed by improving demand, acquisitions and pricing actions, the company anticipates current-year organic sales growth in high-teens percentage. Incremental margin will average in the high 20% range for 2021, highlighting increasing volume levels and operating leverage. Escalating labor, freight and raw material costs are likely to negate some of these gains, and consequently weigh on margins. Estimates for the current year have thus gone down recently. Nevertheless, acquisitions to augment its capabilities and geographical footprint will aid Lincoln Electric's growth. Focus on developing new products and utilization of digital platforms to engage customers will drive its top line. A solid balance sheet also bodes well.”
LECO has been the topic of several other reports. Morgan Stanley lifted their price objective on Lincoln Electric from $136.00 to $142.00 and gave the company an “equal weight” rating in a research note on Wednesday, July 28th. Oppenheimer boosted their price objective on Lincoln Electric from $147.00 to $155.00 and gave the company an “outperform” rating in a research report on Wednesday, July 28th. Finally, Barclays boosted their price target on Lincoln Electric from $140.00 to $145.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 14th. One research analyst has rated the stock with a sell rating, three have issued a hold rating and four have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $135.00.
Lincoln Electric (NASDAQ:LECO) last posted its quarterly earnings data on Tuesday, July 27th. The industrial products company reported $1.67 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.48 by $0.19. The business had revenue of $826.50 million during the quarter, compared to the consensus estimate of $790.15 million. Lincoln Electric had a return on equity of 41.01% and a net margin of 9.97%. The company’s revenue was up 39.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.80 earnings per share. As a group, equities analysts anticipate that Lincoln Electric will post 6.17 earnings per share for the current year.
In other news, EVP Jennifer I. Ansberry sold 6,860 shares of Lincoln Electric stock in a transaction dated Tuesday, September 7th. The shares were sold at an average price of $134.03, for a total transaction of $919,445.80. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 3.35% of the company’s stock.
Several large investors have recently added to or reduced their stakes in LECO. Thrivent Financial for Lutherans increased its holdings in shares of Lincoln Electric by 2.9% during the 2nd quarter. Thrivent Financial for Lutherans now owns 707,814 shares of the industrial products company’s stock valued at $93,226,000 after purchasing an additional 20,186 shares in the last quarter. Parametric Portfolio Associates LLC increased its stake in shares of Lincoln Electric by 3.2% during the second quarter. Parametric Portfolio Associates LLC now owns 110,246 shares of the industrial products company’s stock worth $14,521,000 after buying an additional 3,437 shares during the period. Comerica Bank boosted its holdings in shares of Lincoln Electric by 15.0% in the second quarter. Comerica Bank now owns 84,233 shares of the industrial products company’s stock valued at $11,504,000 after acquiring an additional 10,964 shares during the period. Morgan Stanley lifted its holdings in shares of Lincoln Electric by 171.7% during the second quarter. Morgan Stanley now owns 169,454 shares of the industrial products company’s stock worth $22,320,000 after purchasing an additional 107,096 shares during the period. Finally, Zacks Investment Management increased its position in shares of Lincoln Electric by 6.9% in the second quarter. Zacks Investment Management now owns 25,452 shares of the industrial products company’s stock valued at $3,352,000 after buying an additional 1,650 shares in the last quarter. Institutional investors and hedge funds own 74.16% of the company’s stock.
About Lincoln Electric
Lincoln Electric Holdings, Inc engages in the manufacture of arc welding equipment, consumable welding products and other welding and cutting products. Its welding products include arc welding power sources, wire feeding systems, robotic welding packages, fume extraction equipment, consumable electrodes and fluxes.
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