A. O. Smith Corporation (NYSE:AOS) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts give A. O. Smith an average recommendation of "Hold" from 10 firms (1 sell, 7 hold, 2 buy) with a consensus 12‑month price target of $77.00.
• SVP Darrell W. Schuh sold 1,104 shares at an average price of $74.39 on March 4, reducing his holding by 33.4%; corporate insiders own about 0.50% of the company.
• The company posted a quarterly EPS beat of $0.90 versus $0.84 expected while revenue missed at $912.5M versus ~$929M, and it pays a quarterly dividend of $0.36 ($1.44 annualized) for a ~2.0% yield and a 37.3% payout ratio.

Shares of A. O. Smith Corporation (NYSE:AOS - Get Free Report) have been assigned an average recommendation of "Hold" from the ten research firms that are currently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $77.00.

Several brokerages recently commented on AOS. Citigroup reiterated a "neutral" rating and issued a $78.00 target price (up from $72.00) on shares of A. O. Smith in a report on Friday, January 30th. The Goldman Sachs Group set a $69.00 price target on A. O. Smith and gave the company a "sell" rating in a research report on Thursday, February 12th. DA Davidson reiterated a "neutral" rating and issued a $75.00 price objective on shares of A. O. Smith in a research note on Thursday, November 13th. Stifel Nicolaus set a $85.00 price objective on A. O. Smith and gave the stock a "buy" rating in a research report on Friday, January 30th. Finally, Wall Street Zen downgraded A. O. Smith from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th.

Insider Buying and Selling at A. O. Smith

In other news, SVP Darrell W. Schuh sold 1,104 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $74.39, for a total value of $82,126.56. Following the sale, the senior vice president owned 2,201 shares in the company, valued at approximately $163,732.39. This trade represents a 33.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On A. O. Smith

Several large investors have recently bought and sold shares of the stock. Creative Financial Designs Inc. ADV grew its position in A. O. Smith by 3,481.8% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company's stock worth $26,000 after purchasing an additional 383 shares during the last quarter. Rothschild Investment LLC raised its position in shares of A. O. Smith by 3,125.0% during the third quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company's stock valued at $28,000 after buying an additional 375 shares during the last quarter. Loomis Sayles & Co. L P acquired a new position in shares of A. O. Smith during the second quarter valued at about $30,000. Torren Management LLC bought a new stake in shares of A. O. Smith in the fourth quarter valued at about $31,000. Finally, Evelyn Partners Investment Management LLP lifted its stake in shares of A. O. Smith by 988.9% in the second quarter. Evelyn Partners Investment Management LLP now owns 490 shares of the industrial products company's stock valued at $32,000 after buying an additional 445 shares during the period. 76.10% of the stock is currently owned by institutional investors and hedge funds.

A. O. Smith Stock Down 0.8%

Shares of A. O. Smith stock opened at $70.47 on Tuesday. A. O. Smith has a 12-month low of $58.83 and a 12-month high of $81.86. The company has a quick ratio of 0.94, a current ratio of 1.50 and a debt-to-equity ratio of 0.06. The stock has a 50 day moving average price of $73.95 and a two-hundred day moving average price of $70.79. The stock has a market capitalization of $9.75 billion, a P/E ratio of 18.26, a PEG ratio of 1.47 and a beta of 1.33.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings data on Thursday, January 29th. The industrial products company reported $0.90 earnings per share for the quarter, topping analysts' consensus estimates of $0.84 by $0.06. The business had revenue of $912.50 million during the quarter, compared to analysts' expectations of $928.97 million. A. O. Smith had a net margin of 14.26% and a return on equity of 29.51%. A. O. Smith's revenue for the quarter was up .0% on a year-over-year basis. During the same period in the previous year, the company earned $0.85 earnings per share. Equities analysts expect that A. O. Smith will post 3.76 earnings per share for the current year.

A. O. Smith Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, February 17th. Stockholders of record on Friday, January 30th were issued a dividend of $0.36 per share. The ex-dividend date was Friday, January 30th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.0%. A. O. Smith's payout ratio is 37.31%.

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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