A. O. Smith Corporation (NYSE:AOS) Receives Consensus Rating of "Reduce" from Brokerages

Key Points

• A. O. Smith received a consensus “Reduce” rating from nine brokerages: three sell ratings, four holds and two buys. The average 12-month price target is $67.75, with several analysts recently lowering targets.
• The company exceeded quarterly earnings expectations, reporting $1.03 in EPS versus a $0.96 consensus estimate and $1 billion in revenue, although revenue declined 0.7% year over year.
• A. O. Smith declared a quarterly dividend of $0.36 per share, equivalent to $1.44 annually and a 2.3% yield; institutional investors own 76.1% of the company’s stock.

Shares of A. O. Smith Corporation (NYSE:AOS - Get Free Report) have been given a consensus rating of "Reduce" by the nine brokerages that are covering the company, Marketbeat.com reports. Three analysts have rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $67.75.

A number of equities research analysts have weighed in on AOS shares. JPMorgan Chase & Co. reaffirmed an "underweight" rating and set a $60.00 target price (down from $65.00) on shares of A. O. Smith in a research report on Friday, May 15th. Zacks Research downgraded A. O. Smith from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 6th. Robert W. Baird set a $70.00 price target on A. O. Smith in a research note on Friday, May 1st. Stifel Nicolaus decreased their price objective on A. O. Smith from $76.00 to $70.00 and set a "buy" rating for the company in a report on Friday, July 31st. Finally, Citigroup lowered their price objective on shares of A. O. Smith from $65.00 to $64.00 and set a "neutral" rating for the company in a research note on Friday, July 31st.

Institutional Trading of A. O. Smith

Hedge funds have recently bought and sold shares of the stock. Prospera Financial Services Inc increased its holdings in shares of A. O. Smith by 4.0% during the fourth quarter. Prospera Financial Services Inc now owns 3,261 shares of the industrial products company's stock valued at $218,000 after acquiring an additional 126 shares in the last quarter. Grey Ledge Advisors LLC boosted its stake in A. O. Smith by 1.4% in the 4th quarter. Grey Ledge Advisors LLC now owns 8,966 shares of the industrial products company's stock worth $600,000 after purchasing an additional 128 shares in the last quarter. Eukles Asset Management boosted its stake in A. O. Smith by 0.5% in the 4th quarter. Eukles Asset Management now owns 29,240 shares of the industrial products company's stock worth $1,956,000 after purchasing an additional 151 shares in the last quarter. Larson Financial Group LLC grew its position in A. O. Smith by 31.8% during the 4th quarter. Larson Financial Group LLC now owns 642 shares of the industrial products company's stock worth $43,000 after purchasing an additional 155 shares during the last quarter. Finally, Founders Financial Alliance LLC raised its holdings in shares of A. O. Smith by 2.8% in the fourth quarter. Founders Financial Alliance LLC now owns 5,607 shares of the industrial products company's stock worth $375,000 after buying an additional 155 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

A. O. Smith Trading Down 0.3%

NYSE AOS opened at $63.02 on Friday. The stock has a market cap of $8.69 billion, a PE ratio of 17.51, a PEG ratio of 1.41 and a beta of 1.17. A. O. Smith has a 12 month low of $54.16 and a 12 month high of $81.86. The company's 50-day moving average price is $59.94 and its 200-day moving average price is $65.10. The company has a current ratio of 1.59, a quick ratio of 1.04 and a debt-to-equity ratio of 0.32.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its earnings results on Thursday, July 30th. The industrial products company reported $1.03 EPS for the quarter, topping analysts' consensus estimates of $0.96 by $0.07. The business had revenue of $1 billion for the quarter, compared to analyst estimates of $994.89 million. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The company's quarterly revenue was down .7% compared to the same quarter last year. During the same period last year, the company posted $1.07 earnings per share. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. Equities research analysts forecast that A. O. Smith will post 3.74 earnings per share for the current year.

A. O. Smith Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be paid a dividend of $0.36 per share. The ex-dividend date is Friday, July 31st. 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 currently 40.00%.

A. O. Smith Company Profile

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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