Zacks Investment Research upgraded shares of A. O. Smith (NYSE:AOS) from a sell rating to a hold rating in a research report released on Thursday morning.
According to Zacks, “Over the past six months, A.O. Smith’s stock has outperformed the industry average. The company also has an impressive earnings surprise history, having beaten estimates thrice over the four trailing quarters. A flourishing water heater industry, robust consumer product demand in China and positive industry trends are likely to drive top-line growth, going forward. Also, acquisition of residential water treatment firm, Aquasana, looks promising. However, on the flip side, appreciation in steel prices is expected to put margins under pressure. Moreover, transition of the Chinese economy to a consumer driven one has resulted in a significant slowdown that might impact the company’s sales in the region. Also, strong competition in the water boilers and heaters industry compounds the company’s challenges.”
AOS has been the subject of a number of other reports. Boenning Scattergood cut shares of A. O. Smith from an outperform rating to a neutral rating in a research note on Wednesday, October 25th. Stifel Nicolaus reissued a hold rating and issued a $59.00 price objective on shares of A. O. Smith in a research note on Thursday, October 12th. Robert W. Baird reissued a buy rating and issued a $64.00 price objective on shares of A. O. Smith in a research note on Wednesday, October 4th. Finally, SunTrust Banks reissued a buy rating and issued a $65.00 price objective on shares of A. O. Smith in a research note on Thursday, October 12th. Five research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. A. O. Smith presently has a consensus rating of Hold and an average target price of $62.40.
Shares of A. O. Smith (NYSE AOS) traded up $0.57 during midday trading on Thursday, hitting $65.32. 856,560 shares of the stock were exchanged, compared to its average volume of 671,164. The company has a current ratio of 2.32, a quick ratio of 1.92 and a debt-to-equity ratio of 0.27. The stock has a market capitalization of $11,230.00, a PE ratio of 32.02, a PEG ratio of 2.17 and a beta of 1.57. A. O. Smith has a 1 year low of $46.44 and a 1 year high of $65.37.
A. O. Smith (NYSE:AOS) last announced its quarterly earnings data on Wednesday, October 25th. The industrial products company reported $0.54 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.01. The firm had revenue of $749.90 million during the quarter, compared to analysts’ expectations of $741.28 million. A. O. Smith had a net margin of 12.18% and a return on equity of 22.42%. The company’s revenue for the quarter was up 9.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.47 earnings per share. sell-side analysts expect that A. O. Smith will post 2.13 earnings per share for the current fiscal year.
In related news, insider Peter R. Martineau sold 9,723 shares of the company’s stock in a transaction on Friday, November 17th. The shares were sold at an average price of $59.02, for a total transaction of $573,851.46. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Peter R. Martineau sold 22,267 shares of the company’s stock in a transaction on Tuesday, October 31st. The stock was sold at an average price of $59.33, for a total transaction of $1,321,101.11. Following the transaction, the insider now owns 17,528 shares of the company’s stock, valued at approximately $1,039,936.24. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 100,156 shares of company stock valued at $6,092,537. 1.27% of the stock is owned by company insiders.
Several large investors have recently modified their holdings of AOS. Toronto Dominion Bank boosted its position in shares of A. O. Smith by 11.8% during the second quarter. Toronto Dominion Bank now owns 1,807 shares of the industrial products company’s stock worth $102,000 after acquiring an additional 191 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in shares of A. O. Smith by 973.5% during the second quarter. Tower Research Capital LLC TRC now owns 1,825 shares of the industrial products company’s stock worth $103,000 after acquiring an additional 1,655 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its position in shares of A. O. Smith by 6.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,986 shares of the industrial products company’s stock worth $112,000 after acquiring an additional 119 shares during the last quarter. Mountain Capital Investment Advisors Inc bought a new position in shares of A. O. Smith during the second quarter worth $124,000. Finally, ELCO Management Co. LLC bought a new position in shares of A. O. Smith during the second quarter worth $206,000. Hedge funds and other institutional investors own 74.93% of the company’s stock.
A. O. Smith Company Profile
A. O. Smith Corporation operates through two segments: North America and Rest of World. The Company’s Rest of World segment primarily consists of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas, gas tankless and electric water heaters, as well as water treatment products.
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