A. O. Smith (NYSE:AOS) Given "Hold (C)" Rating at Weiss Ratings

Key Points

• A. O. Smith's stock maintains a "hold (C)" rating from Weiss Ratings, while other brokerages have varied in their analyses, with Oppenheimer raising its price target from $82 to $88.
• The company reported $1.07 earnings per share (EPS) in its latest quarterly results, exceeding estimates, despite a 1.3% year-over-year revenue decline.
• Significant insider activity includes Chairman Kevin J. Wheeler selling 22,200 shares, reducing his ownership by 18.07%.

Weiss Ratings restated their hold (c) rating on shares of A. O. Smith (NYSE:AOS - Free Report) in a research note issued to investors on Saturday,Weiss Ratings reports.

Several other analysts have also recently weighed in on the stock. Stifel Nicolaus lifted their price target on shares of A. O. Smith from $78.00 to $81.00 and gave the company a "buy" rating in a report on Monday, July 21st. JPMorgan Chase & Co. started coverage on shares of A. O. Smith in a report on Tuesday, June 24th. They issued a "neutral" rating and a $70.00 price target on the stock. Oppenheimer lifted their price target on shares of A. O. Smith from $82.00 to $88.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Robert W. Baird lifted their price target on shares of A. O. Smith from $76.00 to $82.00 and gave the company a "neutral" rating in a report on Friday, July 25th. Finally, Wall Street Zen upgraded shares of A. O. Smith from a "hold" rating to a "buy" rating in a report on Friday, August 22nd. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $77.43.

A. O. Smith Trading Up 0.3%

Shares of NYSE AOS traded up $0.23 during mid-day trading on Friday, hitting $70.61. The stock had a trading volume of 548,984 shares, compared to its average volume of 1,513,454. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.03 and a current ratio of 1.65. A. O. Smith has a 1 year low of $58.83 and a 1 year high of $92.06. The business has a 50 day moving average price of $70.26 and a two-hundred day moving average price of $67.31. The firm has a market cap of $9.89 billion, a P/E ratio of 19.67, a price-to-earnings-growth ratio of 1.55 and a beta of 1.25.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its earnings results on Thursday, July 24th. The industrial products company reported $1.07 EPS for the quarter, topping the consensus estimate of $0.97 by $0.10. A. O. Smith had a net margin of 13.68% and a return on equity of 28.42%. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $997.89 million. During the same period in the previous year, the firm earned $1.06 earnings per share. The firm's revenue for the quarter was down 1.3% on a year-over-year basis. A. O. Smith has set its FY 2025 guidance at 3.700-3.900 EPS. On average, equities analysts anticipate that A. O. Smith will post 3.76 EPS for the current fiscal year.

A. O. Smith Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Thursday, July 31st were given a $0.34 dividend. The ex-dividend date of this dividend was Thursday, July 31st. This represents a $1.36 dividend on an annualized basis and a yield of 1.9%. A. O. Smith's payout ratio is 37.88%.

Insiders Place Their Bets

In other A. O. Smith news, Chairman Kevin J. Wheeler sold 22,200 shares of the business's stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $71.26, for a total value of $1,581,972.00. Following the completion of the transaction, the chairman owned 100,647 shares of the company's stock, valued at approximately $7,172,105.22. The trade was a 18.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.76% of the company's stock.

Hedge Funds Weigh In On A. O. Smith

A number of hedge funds have recently bought and sold shares of AOS. Impax Asset Management Group plc raised its position in A. O. Smith by 67.3% in the 1st quarter. Impax Asset Management Group plc now owns 5,188,561 shares of the industrial products company's stock worth $339,124,000 after buying an additional 2,086,433 shares during the last quarter. Norges Bank purchased a new position in A. O. Smith in the 2nd quarter worth about $91,939,000. American Century Companies Inc. increased its position in shares of A. O. Smith by 998.6% during the 1st quarter. American Century Companies Inc. now owns 1,348,247 shares of the industrial products company's stock valued at $88,121,000 after purchasing an additional 1,225,521 shares during the last quarter. Sarasin & Partners LLP purchased a new stake in shares of A. O. Smith during the 1st quarter valued at about $74,180,000. Finally, Qube Research & Technologies Ltd increased its position in shares of A. O. Smith by 655.5% during the 2nd quarter. Qube Research & Technologies Ltd now owns 710,716 shares of the industrial products company's stock valued at $46,602,000 after purchasing an additional 616,638 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.