A. O. Smith Corporation (NYSE:AOS) Receives Average Rating of "Hold" from Analysts

Key Points

• Analysts have assigned an average rating of "Hold" to A. O. Smith from 10 firms (1 sell, 7 hold, 2 buy), with an average one‑year price target of about $74.89.
• A. O. Smith reported quarterly EPS of $0.90 (vs. $0.84 expected) but revenue of $912.5M missed estimates (~$929M); the shares trade near $63.87 with a 52‑week range of $62.14–$81.86, market cap ~$8.83B and a P/E of 16.55.
• The company declared a quarterly dividend of $0.36 (annualized $1.44, yield 2.3%) with ex‑dividend April 30 and pay date May 15; an SVP sold 1,104 shares (a 33.4% reduction) while insiders own 0.5% and institutions own 76.1% of the stock.

Shares of A. O. Smith Corporation (NYSE:AOS - Get Free Report) have been assigned an average rating of "Hold" from the ten ratings firms that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $74.8889.

A number of equities analysts have weighed in on AOS shares. The Goldman Sachs Group reduced their price objective on A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a research note on Monday, April 13th. Stifel Nicolaus set a $78.00 price objective on A. O. Smith and gave the company a "buy" rating in a research note on Tuesday, April 14th. Robert W. Baird set a $77.00 price objective on A. O. Smith in a research note on Friday, January 30th. Wall Street Zen lowered A. O. Smith from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Finally, Jefferies Financial Group set a $75.00 price objective on A. O. Smith and gave the company a "hold" rating in a research note on Friday, January 9th.

Insider Buying and Selling at A. O. Smith

In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of A. O. Smith stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total transaction of $82,126.56. Following the completion of the transaction, 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On A. O. Smith

Institutional investors and hedge funds have recently modified their holdings of the business. Rothschild Investment LLC increased its stake in shares of A. O. Smith by 3,125.0% in the 3rd quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 375 shares in the last quarter. Creative Financial Designs Inc. ADV increased its stake in shares of 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 valued at $26,000 after purchasing an additional 383 shares in the last quarter. Root Financial Partners LLC purchased a new position in shares of A. O. Smith in the 3rd quarter valued at about $33,000. Torren Management LLC purchased a new position in shares of A. O. Smith in the 4th quarter valued at about $31,000. Finally, Eagle Bay Advisors LLC purchased a new position in shares of A. O. Smith in the 4th quarter valued at about $32,000. Hedge funds and other institutional investors own 76.10% of the company's stock.

A. O. Smith Stock Performance

Shares of AOS opened at $63.87 on Wednesday. The stock has a 50-day moving average of $68.29 and a two-hundred day moving average of $69.04. A. O. Smith has a one year low of $62.14 and a one year high of $81.86. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.94 and a current ratio of 1.50. The stock has a market cap of $8.83 billion, a P/E ratio of 16.55, a P/E/G ratio of 1.35 and a beta of 1.35.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The industrial products company reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.84 by $0.06. A. O. Smith had a return on equity of 29.51% and a net margin of 14.26%.The company had revenue of $912.50 million during the quarter, compared to analysts' expectations of $928.97 million. During the same quarter in the previous year, the firm posted $0.85 EPS. The firm's revenue was up .0% compared to the same quarter last year. As a group, research analysts predict that A. O. Smith will post 3.98 EPS for the current year.

A. O. Smith Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Thursday, April 30th will be paid a dividend of $0.36 per share. The ex-dividend date is Thursday, April 30th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.3%. A. O. Smith's dividend payout ratio (DPR) is presently 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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