Lincoln Electric (NASDAQ:LECO) Shares Gap Up Following Strong Earnings

Shares of Lincoln Electric Holdings, Inc. (NASDAQ:LECO) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $258.65, but opened at $275.01. Lincoln Electric shares last traded at $275.9480, with a volume of 66,203 shares trading hands.

The industrial products company reported $2.98 earnings per share for the quarter, beating analysts’ consensus estimates of $2.81 by $0.17. Lincoln Electric had a net margin of 12.35% and a return on equity of 39.23%. During the same period in the prior year, the company earned $2.47 earnings per share. The company’s revenue was up 15.1% compared to the same quarter last year.

Lincoln Electric Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be issued a dividend of $0.87 per share. The ex-dividend date is Thursday, December 31st. This is a positive change from Lincoln Electric’s previous quarterly dividend of $0.79. This represents a $3.48 dividend on an annualized basis and a yield of 1.3%. Lincoln Electric’s dividend payout ratio is presently 31.57%.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Morgan Stanley upgraded shares of Lincoln Electric from an “underweight” rating to an “equal weight” rating and increased their price target for the company from $257.00 to $283.00 in a research note on Monday, August 10th. Weiss Ratings upgraded shares of Lincoln Electric from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, October 8th. Wall Street Zen cut shares of Lincoln Electric from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. UBS Group started coverage on shares of Lincoln Electric in a research note on Monday, August 10th. They issued a “buy” rating and a $340.00 target price for the company. Finally, Stifel Nicolaus set a $271.00 price target on Lincoln Electric in a research report on Monday, October 19th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $306.78.

Institutional Trading of Lincoln Electric

Hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. increased its position in Lincoln Electric by 40.5% during the 2nd quarter. BlackRock Inc. now owns 18,561,962 shares of the industrial products company’s stock worth $656,165,000 after buying an additional 5,354,141 shares during the period. The Manufacturers Life Insurance Company bought a new stake in shares of Lincoln Electric in the second quarter valued at about $1,858,000. Hsbc Holdings PLC boosted its position in shares of Lincoln Electric by 126.9% in the second quarter. Hsbc Holdings PLC now owns 17,021 shares of the industrial products company’s stock valued at $4,500,000 after acquiring an additional 9,518 shares during the period. NewEdge Advisors LLC boosted its position in shares of Lincoln Electric by 403.4% in the second quarter. NewEdge Advisors LLC now owns 21,388 shares of the industrial products company’s stock valued at $5,679,000 after acquiring an additional 17,139 shares during the period. Finally, California State Teachers Retirement System grew its stake in shares of Lincoln Electric by 23.2% in the first quarter. California State Teachers Retirement System now owns 64,257 shares of the industrial products company’s stock valued at $16,005,000 after acquiring an additional 12,093 shares in the last quarter. Institutional investors own 79.61% of the company’s stock.

Lincoln Electric Price Performance

The firm has a market capitalization of $14.98 billion, a price-to-earnings ratio of 27.35, a P/E/G ratio of 1.53 and a beta of 1.21. The company’s 50 day moving average is $267.97 and its 200 day moving average is $265.31. The company has a quick ratio of 1.20, a current ratio of 1.98 and a debt-to-equity ratio of 0.74.

About Lincoln Electric

Lincoln Electric Holdings, Inc (NASDAQ: LECO) is a global manufacturer of welding, cutting and industrial automation products. The company serves customers in industries including construction, manufacturing, energy, transportation and heavy equipment.

Its product portfolio includes arc-welding equipment, welding consumables such as electrodes and welding wire, plasma-cutting systems, welding accessories and personal protective equipment. Lincoln Electric also provides robotic and automated welding systems, industrial automation solutions, application engineering, training and maintenance services.