A. O. Smith (NYSE:AOS) Sets New 52-Week Low - Here's What Happened

Key Points

• A. O. Smith shares hit a new 52-week low on Tuesday, trading as low as $55.08 after closing at $56.70 previously.
• Recent analyst commentary has been mixed to negative, including a Citigroup price target cut to $65 and an overall average rating of "Reduce" with a consensus target of $69.89.
• The company recently reported Q1 earnings that missed expectations, with EPS of $0.85 versus $0.94 estimated and revenue of $945.6 million below consensus.

A. O. Smith Corporation (NYSE:AOS - Get Free Report)'s share price reached a new 52-week low during trading on Tuesday . The company traded as low as $55.08 and last traded at $55.9690, with a volume of 79855 shares. The stock had previously closed at $56.70.

Wall Street Analyst Weigh In

A number of research firms have recently commented on AOS. Citigroup dropped their price objective on A. O. Smith from $74.00 to $65.00 and set a "neutral" rating on the stock in a research note on Monday, May 4th. Oppenheimer reiterated an "outperform" rating and issued a $80.00 price objective on shares of A. O. Smith in a research note on Friday, May 1st. DA Davidson set a $67.00 price objective on A. O. Smith and gave the stock a "neutral" rating in a research note on Monday, May 4th. Wall Street Zen lowered A. O. Smith from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Finally, Robert W. Baird set a $70.00 price target on A. O. Smith in a research note on Friday, May 1st. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $69.89.

A. O. Smith Stock Performance

The company has a market capitalization of $7.69 billion, a P/E ratio of 14.86, a price-to-earnings-growth ratio of 1.24 and a beta of 1.23. The firm has a 50 day moving average price of $64.09 and a two-hundred day moving average price of $68.21. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56.

A. O. Smith (NYSE:AOS - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $0.85 earnings per share for the quarter, missing the consensus estimate of $0.94 by ($0.09). A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The company had revenue of $945.60 million during the quarter, compared to the consensus estimate of $974.06 million. During the same quarter in the prior year, the company posted $0.95 earnings per share. The company's revenue for the quarter was down 1.9% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. On average, research analysts expect that A. O. Smith Corporation will post 3.78 earnings per share for the current fiscal year.

A. O. Smith Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Thursday, April 30th were paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.6%. The ex-dividend date was Thursday, April 30th. A. O. Smith's dividend payout ratio is currently 38.30%.

Insider Buying and Selling at A. O. Smith

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

Institutional Investors Weigh In On A. O. Smith

Several large investors have recently modified their holdings of the stock. Prospera Financial Services Inc grew its stake in shares of A. O. Smith by 4.0% in the 4th quarter. Prospera Financial Services Inc now owns 3,261 shares of the industrial products company's stock valued at $218,000 after purchasing an additional 126 shares during the period. Grey Ledge Advisors LLC grew its position in A. O. Smith by 1.4% during the 4th quarter. Grey Ledge Advisors LLC now owns 8,966 shares of the industrial products company's stock worth $600,000 after acquiring an additional 128 shares during the last quarter. Eukles Asset Management grew its position in A. O. Smith by 0.5% during the 4th quarter. Eukles Asset Management now owns 29,240 shares of the industrial products company's stock worth $1,956,000 after acquiring an additional 151 shares during 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 acquiring an additional 155 shares during the last quarter. Finally, Founders Financial Alliance LLC grew its position in A. O. Smith by 2.8% during the 4th quarter. Founders Financial Alliance LLC now owns 5,607 shares of the industrial products company's stock worth $375,000 after acquiring an additional 155 shares during the last quarter. 76.10% of the stock is currently owned by institutional investors.

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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