A. O. Smith (NYSE:AOS) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded A. O. Smith from “hold” to “strong sell.” Analysts’ overall consensus is “Reduce,” with an average price target of $66.
• Recent analyst views are mixed: Goldman Sachs maintained a “sell” rating, while Oppenheimer kept an “outperform” rating and lowered its target to $72. Citigroup raised its target to $67 but maintained a “neutral” rating.
• A. O. Smith reported quarterly EPS of $0.93, topping estimates of $0.90, but revenue of $940.5 million fell short of forecasts and declined 0.2% year over year.

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

A number of other equities analysts have also recently commented on the stock. The Goldman Sachs Group reissued a "sell" rating and issued a $58.00 price objective on shares of A. O. Smith in a research note on Friday, October 30th. Longbow Research cut shares of A. O. Smith from a "buy" rating to a "neutral" rating in a research report on Monday, October 19th. Citigroup increased their price target on shares of A. O. Smith from $64.00 to $67.00 and gave the company a "neutral" rating in a report on Friday, October 30th. Stifel Nicolaus set a $59.00 price target on A. O. Smith and gave the stock a "hold" rating in a research report on Sunday, October 18th. Finally, Oppenheimer reissued an "outperform" rating and set a $72.00 price objective (down from $75.00) on shares of A. O. Smith in a research note on Wednesday, October 21st. One equities research analyst has rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, A. O. Smith currently has a consensus rating of "Reduce" and an average price target of $66.00.

A. O. Smith Stock Performance

Shares of NYSE AOS opened at $67.19 on Tuesday. A. O. Smith has a 12-month low of $54.16 and a 12-month high of $81.86. The firm has a market capitalization of $9.13 billion, a price-to-earnings ratio of 18.72, a price-to-earnings-growth ratio of 1.49 and a beta of 1.03. The company has a current ratio of 1.64, a quick ratio of 1.05 and a debt-to-equity ratio of 0.35. The firm has a 50 day moving average of $59.14 and a 200 day moving average of $63.46.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The industrial products company reported $0.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.90 by $0.03. The business had revenue of $940.50 million during the quarter, compared to analyst estimates of $960.20 million. A. O. Smith had a return on equity of 27.66% and a net margin of 13.01%. A. O. Smith's revenue for the quarter was down .2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.94 EPS. On average, research analysts anticipate that A. O. Smith will post 3.56 earnings per share for the current year.

Hedge Funds Weigh In On A. O. Smith

Hedge funds and other institutional investors have recently bought and sold shares of the business. StoneRidge PMG Advisors LLC purchased a new position in A. O. Smith in the 3rd quarter valued at approximately $499,000. Parallel Advisors LLC grew its holdings in A. O. Smith by 111.1% in the third quarter. Parallel Advisors LLC now owns 5,086 shares of the industrial products company's stock valued at $287,000 after purchasing an additional 2,677 shares during the last quarter. Wedbush Securities Inc. raised its stake in shares of A. O. Smith by 2.4% during the 3rd quarter. Wedbush Securities Inc. now owns 12,705 shares of the industrial products company's stock worth $716,000 after buying an additional 297 shares during the last quarter. Nisa Investment Advisors LLC raised its stake in shares of A. O. Smith by 118.2% during the 3rd quarter. Nisa Investment Advisors LLC now owns 29,200 shares of the industrial products company's stock worth $1,646,000 after buying an additional 15,818 shares during the last quarter. Finally, Willis Investment Counsel boosted its position in shares of A. O. Smith by 6.2% in the 3rd quarter. Willis Investment Counsel now owns 80,989 shares of the industrial products company's stock worth $4,565,000 after buying an additional 4,763 shares in the last quarter. Institutional investors and hedge funds own 76.10% of the company's stock.

About A. O. Smith

A. O. Smith Corporation is a manufacturer of water heating and water treatment products for residential, commercial and industrial customers. Its portfolio includes gas and electric storage water heaters, tankless water heaters, boilers, heat pump water heaters, water filtration systems, water softeners and reverse-osmosis products.

The company markets products under the A. O. Smith brand and other regional brands, serving applications ranging from homes and apartments to hotels, hospitals, schools, manufacturing facilities and other commercial properties.

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