A. O. Smith Corporation (NYSE:AOS) Given Average Recommendation of "Reduce" by Brokerages

Key Points

• Broker sentiment is cautious: A. O. Smith has an average analyst recommendation of "Reduce" from 11 brokerages, with three sell ratings, six holds, and two buys. The average 1-year price target is about $69.33.
• Recent earnings missed expectations: The company reported $0.85 EPS for the quarter, below the consensus estimate of $0.94, and revenue of $945.6 million, also short of expectations. Revenue was down 1.9% year over year.
• Shares are trading below longer-term levels: AOS opened at $60.52, near its 50-day average of $58.89 but well below its 200-day average of $66.19. The stock’s 52-week range is $54.16 to $81.86.

A. O. Smith Corporation (NYSE:AOS - Get Free Report) has been assigned an average recommendation of "Reduce" from the eleven brokerages that are covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell rating, six have assigned a hold rating and two have issued a buy rating on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $69.3333.

Several equities analysts have recently issued reports on AOS shares. Weiss Ratings lowered shares of A. O. Smith from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, May 27th. The Goldman Sachs Group reduced their target price on A. O. Smith from $69.00 to $61.00 and set a "sell" rating on the stock in a report on Monday, April 13th. Oppenheimer set a $75.00 price target on A. O. Smith and gave the stock an "outperform" rating in a report on Wednesday, June 10th. Stifel Nicolaus set a $75.00 target price on A. O. Smith in a research note on Friday, May 1st. Finally, DA Davidson set a $67.00 target price on shares of A. O. Smith and gave the stock a "neutral" rating in a report on Monday, May 4th.

A. O. Smith Trading Up 0.1%

Shares of AOS opened at $60.52 on Monday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56. The company has a market cap of $8.34 billion, a price-to-earnings ratio of 16.09, a PEG ratio of 1.34 and a beta of 1.16. The stock has a fifty day moving average price of $58.89 and a two-hundred day moving average price of $66.19. A. O. Smith has a 52-week low of $54.16 and a 52-week high of $81.86.

A. O. Smith (NYSE:AOS - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $0.85 earnings per share for the quarter, missing analysts' consensus estimates of $0.94 by ($0.09). A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The firm had revenue of $945.60 million for the quarter, compared to the consensus estimate of $974.06 million. During the same quarter in the previous year, the firm earned $0.95 EPS. The company's revenue was down 1.9% compared to the same quarter last year. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. Analysts predict that A. O. Smith will post 3.77 EPS for the current fiscal year.

Institutional Trading of A. O. Smith

A number of large investors have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. grew its stake in A. O. Smith by 26.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 665,793 shares of the industrial products company's stock valued at $48,876,000 after buying an additional 139,117 shares during the last quarter. Earnest Partners LLC lifted its position in A. O. Smith by 1.8% during the third quarter. Earnest Partners LLC now owns 2,082,982 shares of the industrial products company's stock worth $152,912,000 after acquiring an additional 36,122 shares during the last quarter. ProShare Advisors LLC boosted its holdings in shares of A. O. Smith by 2.6% during the fourth quarter. ProShare Advisors LLC now owns 2,344,631 shares of the industrial products company's stock worth $156,809,000 after acquiring an additional 60,260 shares during the period. Oak Thistle LLC grew its position in shares of A. O. Smith by 230.1% in the fourth quarter. Oak Thistle LLC now owns 36,077 shares of the industrial products company's stock valued at $2,413,000 after purchasing an additional 25,147 shares during the last quarter. Finally, SG Americas Securities LLC increased its stake in shares of A. O. Smith by 3,725.2% during the fourth quarter. SG Americas Securities LLC now owns 259,466 shares of the industrial products company's stock worth $17,353,000 after purchasing an additional 252,683 shares during the period. Institutional investors and hedge funds own 76.10% of the company's stock.

About A. O. Smith

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.

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