Zacks Investment Research Lowers Lincoln Electric (LECO) to Sell

Zacks Investment Research cut shares of Lincoln Electric (NASDAQ:LECO) from a hold rating to a sell rating in a report released on Tuesday morning.

According to Zacks, “Lincoln Electric witnessed surcharges in second-quarter 2018 primarily related to the U.S. business where the recent tariffs are having the greatest impact. Its results will be hurt by the impact of recent tariffs, raw material inflation and a stronger U.S. dollar. Softer energy business also remains a concern for Lincoln Electric in the near term.”

Other equities analysts also recently issued reports about the stock. BidaskClub upgraded shares of Lincoln Electric from a hold rating to a buy rating in a research note on Thursday, July 12th. Oppenheimer set a $105.00 price objective on shares of Lincoln Electric and gave the stock a buy rating in a research note on Monday, July 23rd. Finally, ValuEngine upgraded shares of Lincoln Electric from a sell rating to a hold rating in a research note on Saturday, July 14th. Two analysts have rated the stock with a sell rating, four have given a hold rating and seven have assigned a buy rating to the company’s stock. Lincoln Electric presently has a consensus rating of Hold and an average target price of $106.25.

Lincoln Electric stock opened at $83.62 on Tuesday. Lincoln Electric has a one year low of $81.48 and a one year high of $101.34. The company has a debt-to-equity ratio of 0.74, a current ratio of 2.62 and a quick ratio of 1.94. The stock has a market cap of $6.09 billion, a PE ratio of 22.06, a price-to-earnings-growth ratio of 1.55 and a beta of 1.19.

Lincoln Electric (NASDAQ:LECO) last posted its quarterly earnings data on Monday, July 23rd. The industrial products company reported $1.22 EPS for the quarter, hitting the Zacks’ consensus estimate of $1.22. Lincoln Electric had a net margin of 8.77% and a return on equity of 29.77%. The company had revenue of $790.10 million during the quarter, compared to the consensus estimate of $810.54 million. During the same period in the prior year, the business posted $0.97 EPS. The company’s quarterly revenue was up 26.0% on a year-over-year basis. On average, sell-side analysts expect that Lincoln Electric will post 4.75 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Monday, October 15th. Stockholders of record on Friday, September 28th will be issued a $0.39 dividend. The ex-dividend date of this dividend is Thursday, September 27th. This represents a $1.56 dividend on an annualized basis and a dividend yield of 1.87%. Lincoln Electric’s payout ratio is 41.16%.

In other news, Director William E. Macdonald III sold 3,500 shares of the company’s stock in a transaction dated Thursday, August 9th. The shares were sold at an average price of $92.96, for a total value of $325,360.00. Following the sale, the director now directly owns 15,307 shares of the company’s stock, valued at approximately $1,422,938.72. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director G Russell Lincoln sold 12,318 shares of the company’s stock in a transaction dated Saturday, July 21st. The shares were sold at an average price of $38.98, for a total transaction of $480,155.64. Following the completion of the sale, the director now directly owns 214,923 shares in the company, valued at $8,377,698.54. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 18,958 shares of company stock worth $1,100,990. 3.04% of the stock is owned by insiders.

Several hedge funds have recently modified their holdings of the company. Profund Advisors LLC raised its holdings in shares of Lincoln Electric by 8.2% in the 1st quarter. Profund Advisors LLC now owns 8,331 shares of the industrial products company’s stock valued at $749,000 after purchasing an additional 630 shares during the period. Metropolitan Life Insurance Co. NY raised its holdings in Lincoln Electric by 3.3% in the 2nd quarter. Metropolitan Life Insurance Co. NY now owns 21,088 shares of the industrial products company’s stock valued at $1,851,000 after acquiring an additional 673 shares during the period. Canada Pension Plan Investment Board raised its holdings in Lincoln Electric by 2.6% in the 2nd quarter. Canada Pension Plan Investment Board now owns 26,700 shares of the industrial products company’s stock valued at $2,343,000 after acquiring an additional 675 shares during the period. OppenheimerFunds Inc. raised its holdings in Lincoln Electric by 8.9% in the 1st quarter. OppenheimerFunds Inc. now owns 8,488 shares of the industrial products company’s stock valued at $763,000 after acquiring an additional 693 shares during the period. Finally, GHP Investment Advisors Inc. raised its holdings in Lincoln Electric by 2.5% in the 2nd quarter. GHP Investment Advisors Inc. now owns 28,139 shares of the industrial products company’s stock valued at $2,469,000 after acquiring an additional 695 shares during the period. 70.29% of the stock is currently owned by institutional investors.

About Lincoln Electric

Lincoln Electric Holdings, Inc, through its subsidiaries, designs, manufactures, and sells welding, cutting, and brazing products worldwide. It operates through three segments: Americas Welding, International Welding, and The Harris Products Group. The company's welding products include arc welding power sources, plasma cutters, wire feeding systems, robotic welding packages, integrated automation systems, fume extraction equipment, consumable electrodes, fluxes and welding accessories, and specialty welding consumables and fabrication products.

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