A. O. Smith (NYSE:AOS) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded A. O. Smith to a "strong sell", and several major firms (Goldman Sachs, Citigroup, JPMorgan) have recently cut price targets or adjusted ratings, though MarketBeat's consensus remains a "Hold" with an average target of $70.44.
• Q1 results missed expectations: the company reported $0.85 EPS vs. $0.94 expected and revenue of $945.6M vs. $974.1M, set FY2026 guidance of $3.60–3.90 EPS (consensus ~3.78), and the stock is trading near $60 with a 1‑year low of $58.22.

A. O. Smith (NYSE:AOS - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Wednesday,Zacks.com reports.

Several other research firms have also recently weighed in on AOS. The Goldman Sachs Group cut their price target on A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a report on Monday, April 13th. Citigroup cut their price target on A. O. Smith from $74.00 to $65.00 and set a "neutral" rating for the company in a report on Monday. Jefferies Financial Group set a $75.00 target price on A. O. Smith and gave the stock a "hold" rating in a report on Friday, January 9th. JPMorgan Chase & Co. dropped their target price on A. O. Smith from $75.00 to $65.00 and set a "neutral" rating for the company in a report on Friday, May 1st. Finally, Stifel Nicolaus set a $75.00 target price on A. O. Smith in a report on Friday, May 1st. Two research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, A. O. Smith has an average rating of "Hold" and an average target price of $70.44.

A. O. Smith Stock Performance

NYSE AOS opened at $60.18 on Wednesday. The stock has a market capitalization of $8.32 billion, a PE ratio of 16.00, a P/E/G ratio of 1.35 and a beta of 1.23. The business has a 50 day simple moving average of $66.64 and a two-hundred day simple moving average of $68.77. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.56 and a quick ratio of 1.00. A. O. Smith has a 1-year low of $58.22 and a 1-year high of $81.86.

A. O. Smith (NYSE:AOS - Get Free Report) last released its quarterly earnings results 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). The firm had revenue of $945.60 million for the quarter, compared to analysts' expectations of $974.06 million. A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The business's quarterly revenue was down 1.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.95 EPS. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. On average, research analysts predict that A. O. Smith will post 3.78 EPS for the current fiscal year.

Insider Buying and Selling at A. O. Smith

In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of the company's stock in a transaction 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 completion of 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On A. O. Smith

Several hedge funds have recently made changes to their positions in the company. Prospera Financial Services Inc lifted its holdings 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 worth $218,000 after buying an additional 126 shares during the period. Grey Ledge Advisors LLC lifted its holdings in shares of 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 buying an additional 128 shares during the period. Eukles Asset Management lifted its holdings in shares of 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 buying an additional 151 shares during the period. Larson Financial Group LLC lifted its holdings in shares of A. O. Smith by 31.8% in the 4th quarter. Larson Financial Group LLC now owns 642 shares of the industrial products company's stock worth $43,000 after buying an additional 155 shares during the period. Finally, Founders Financial Alliance LLC lifted its holdings in shares of A. O. Smith by 2.8% in the 4th 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 period. 76.10% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.