Lincoln Electric (LECO) Lowered to “Hold” at Zacks Investment Research

Lincoln Electric (NASDAQ:LECO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Thursday.

According to Zacks, “Lincoln Electric stands to gain from its improving end markets. Focus on commercializing innovative products, relatively stable pricing environment and cost-cutting initiatives will drive growth. It will also benefit from consistent investment in welding automation. Further, the acquisition of Air Liquide will enhance 2020 Vision and Strategy and enables Lincoln to build its global footprint. It will also be accretive to earnings. The company has a positive record of earnings surprises. Raw material inflation will impact margins in fourth-quarter 2017 as well as in 2018. A stronger U.S. dollar will continue to affect the company’s exports. The stock has underperformed the industry, over the past year. “

Several other research firms also recently commented on LECO. FBR & Co reissued a “buy” rating and set a $115.00 target price (up from $105.00) on shares of Lincoln Electric in a research report on Friday, October 27th. KeyCorp reissued a “hold” rating on shares of Lincoln Electric in a research report on Friday, October 20th. Robert W. Baird reissued a “hold” rating and set a $92.00 target price on shares of Lincoln Electric in a research report on Friday, October 13th. Stifel Nicolaus reissued a “hold” rating and set a $95.00 target price on shares of Lincoln Electric in a research report on Wednesday, October 4th. Finally, ValuEngine downgraded shares of Lincoln Electric from a “buy” rating to a “hold” rating in a research report on Monday, October 2nd. Nine analysts have rated the stock with a hold rating and five have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $99.13.

Lincoln Electric (NASDAQ:LECO) traded down $0.59 during trading on Thursday, reaching $95.72. 303,400 shares of the company’s stock traded hands, compared to its average volume of 409,286. The company has a debt-to-equity ratio of 0.75, a current ratio of 2.55 and a quick ratio of 1.83. The firm has a market capitalization of $6,290.00, a P/E ratio of 23.07, a price-to-earnings-growth ratio of 1.92 and a beta of 1.08. Lincoln Electric has a 52-week low of $75.86 and a 52-week high of $99.59.

Lincoln Electric (NASDAQ:LECO) last posted its earnings results on Friday, October 27th. The industrial products company reported $0.93 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.94 by ($0.01). The business had revenue of $669.50 million for the quarter, compared to analyst estimates of $658.48 million. Lincoln Electric had a return on equity of 28.97% and a net margin of 11.34%. The company’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.89 earnings per share. equities research analysts forecast that Lincoln Electric will post 3.75 EPS for the current year.

Several large investors have recently modified their holdings of the company. Sit Investment Associates Inc. grew its position in shares of Lincoln Electric by 4.5% in the fourth quarter. Sit Investment Associates Inc. now owns 18,845 shares of the industrial products company’s stock valued at $1,726,000 after purchasing an additional 815 shares during the last quarter. Prudential Financial Inc. grew its position in shares of Lincoln Electric by 584.5% in the third quarter. Prudential Financial Inc. now owns 691,029 shares of the industrial products company’s stock valued at $63,353,000 after purchasing an additional 590,070 shares during the last quarter. Public Employees Retirement System of Ohio grew its position in shares of Lincoln Electric by 95.1% in the third quarter. Public Employees Retirement System of Ohio now owns 46,256 shares of the industrial products company’s stock valued at $4,241,000 after purchasing an additional 22,546 shares during the last quarter. California Public Employees Retirement System grew its position in shares of Lincoln Electric by 8.4% in the third quarter. California Public Employees Retirement System now owns 146,726 shares of the industrial products company’s stock valued at $13,452,000 after purchasing an additional 11,426 shares during the last quarter. Finally, Cubist Systematic Strategies LLC grew its position in shares of Lincoln Electric by 731.7% in the third quarter. Cubist Systematic Strategies LLC now owns 20,542 shares of the industrial products company’s stock valued at $1,883,000 after purchasing an additional 18,072 shares during the last quarter. 63.64% of the stock is currently owned by institutional investors.

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Lincoln Electric Company Profile

Lincoln Electric Holdings, Inc is a manufacturer of welding, cutting and brazing products. The Company operates through three segments: Americas Welding, International Welding and The Harris Products Group. The Americas Welding segment includes welding operations in North and South America. The International Welding segment primarily includes welding operations in Europe, Africa, Asia and Australia.

Analyst Recommendations for Lincoln Electric (NASDAQ:LECO)

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