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

Zacks Investment Research downgraded shares of Lincoln Electric (NASDAQ:LECO) from a buy rating to a hold rating in a research note released on Wednesday.

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. “

LECO has been the topic of several other reports. FBR & Co reissued a buy rating and set a $115.00 price target (up from $105.00) on shares of Lincoln Electric in a research note on Friday, October 27th. Oppenheimer reissued a hold rating on shares of Lincoln Electric in a research note on Monday, October 30th. Robert W. Baird reissued a hold rating and set a $92.00 price target on shares of Lincoln Electric in a research note on Friday, October 13th. B. Riley reaffirmed a buy rating on shares of Lincoln Electric in a research note on Wednesday, November 1st. Finally, KeyCorp reaffirmed a hold rating on shares of Lincoln Electric in a research note on Friday, October 20th. Seven investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. Lincoln Electric currently has an average rating of Buy and a consensus price target of $102.63.

Lincoln Electric (NASDAQ:LECO) traded up $0.38 on Wednesday, hitting $98.92. 289,935 shares of the stock traded hands, compared to its average volume of 436,783. Lincoln Electric has a twelve month low of $79.98 and a twelve month high of $100.68. 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 company has a market capitalization of $6,511.79, a PE ratio of 23.78, a P/E/G ratio of 2.01 and a beta of 1.08.

Lincoln Electric (NASDAQ:LECO) last released its quarterly 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). Lincoln Electric had a net margin of 11.34% and a return on equity of 28.97%. The company had revenue of $669.50 million for the quarter, compared to the consensus estimate of $658.48 million. During the same period last year, the company earned $0.89 earnings per share. Lincoln Electric’s revenue for the quarter was up 17.9% compared to the same quarter last year. sell-side analysts anticipate that Lincoln Electric will post 3.75 EPS for the current fiscal year.

A number of hedge funds have recently made changes to their positions in LECO. Schwab Charles Investment Management Inc. boosted its stake in Lincoln Electric by 3.1% in the second quarter. Schwab Charles Investment Management Inc. now owns 203,377 shares of the industrial products company’s stock valued at $18,729,000 after acquiring an additional 6,049 shares during the last quarter. Neuberger Berman Group LLC boosted its stake in Lincoln Electric by 11.4% in the second quarter. Neuberger Berman Group LLC now owns 3,533 shares of the industrial products company’s stock valued at $325,000 after acquiring an additional 361 shares during the last quarter. Schroder Investment Management Group boosted its stake in Lincoln Electric by 1,060.0% in the second quarter. Schroder Investment Management Group now owns 34,800 shares of the industrial products company’s stock valued at $3,193,000 after acquiring an additional 31,800 shares during the last quarter. Wells Fargo & Company MN boosted its stake in Lincoln Electric by 3.6% in the second quarter. Wells Fargo & Company MN now owns 119,104 shares of the industrial products company’s stock valued at $10,968,000 after acquiring an additional 4,167 shares during the last quarter. Finally, Riverhead Capital Management LLC boosted its stake in Lincoln Electric by 66.5% in the second quarter. Riverhead Capital Management LLC now owns 4,662 shares of the industrial products company’s stock valued at $429,000 after acquiring an additional 1,862 shares during the last quarter. 63.64% of the stock is currently owned by hedge funds and other 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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