Citigroup Cuts A. O. Smith (NYSE:AOS) Price Target to $74.00

Key Points

• Citigroup cut its price target on A. O. Smith from $78 to $74 and kept a "neutral" rating, implying roughly a 12.3% upside from the current share price.
• Analysts' consensus remains a Hold with an average target of $76.56, reflecting mixed views (2 Buys, 7 Holds, 1 Sell) and price targets ranging about $69 (Goldman) to $85 (Stifel).
• A. O. Smith recently beat EPS estimates ($0.90 vs. $0.84) but slightly missed revenue expectations, while showing strong profitability metrics (net margin 14.26% and ROE 29.51%).

A. O. Smith (NYSE:AOS - Get Free Report) had its target price decreased by equities researchers at Citigroup from $78.00 to $74.00 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "neutral" rating on the industrial products company's stock. Citigroup's price target would indicate a potential upside of 12.29% from the company's current price.

Other equities analysts also recently issued research reports about the stock. Weiss Ratings restated a "hold (c)" rating on shares of A. O. Smith in a research report on Wednesday, December 24th. The Goldman Sachs Group set a $69.00 price objective on shares of A. O. Smith and gave the company a "sell" rating in a research note on Thursday, February 12th. Robert W. Baird set a $77.00 price objective on shares of A. O. Smith in a research note on Friday, January 30th. Stifel Nicolaus set a $85.00 price target on shares of A. O. Smith and gave the stock a "buy" rating in a research note on Friday, January 30th. Finally, Jefferies Financial Group set a $75.00 price objective on shares of A. O. Smith and gave the stock a "hold" rating in a report on Friday, January 9th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, A. O. Smith presently has a consensus rating of "Hold" and an average price target of $76.56.

A. O. Smith Stock Down 0.0%

NYSE AOS traded down $0.02 on Monday, hitting $65.90. 246,320 shares of the stock were exchanged, compared to its average volume of 1,402,670. The company has a 50-day moving average price of $71.64 and a 200-day moving average price of $69.63. A. O. Smith has a fifty-two week low of $61.35 and a fifty-two week high of $81.86. The company has a quick ratio of 0.94, a current ratio of 1.50 and a debt-to-equity ratio of 0.06. The company has a market cap of $9.11 billion, a PE ratio of 17.07, a PEG ratio of 1.37 and a beta of 1.35.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its earnings results on Thursday, January 29th. The industrial products company reported $0.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.84 by $0.06. A. O. Smith had a net margin of 14.26% and a return on equity of 29.51%. The business had revenue of $912.50 million during the quarter, compared to analysts' expectations of $928.97 million. During the same quarter in the prior year, the business posted $0.85 EPS. The company's revenue for the quarter was up .0% on a year-over-year basis. Sell-side analysts anticipate that A. O. Smith will post 3.76 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Darrell W. Schuh sold 1,104 shares of the 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 of the company's stock, valued at approximately $163,732.39. This represents a 33.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On A. O. Smith

A number of hedge funds and other institutional investors have recently bought and sold shares of AOS. Vanguard Group Inc. grew its position in shares of A. O. Smith by 4.7% during the 4th quarter. Vanguard Group Inc. now owns 15,096,018 shares of the industrial products company's stock valued at $1,009,622,000 after purchasing an additional 683,176 shares in the last quarter. State Street Corp grew its position in A. O. Smith by 8.4% in the fourth quarter. State Street Corp now owns 5,911,495 shares of the industrial products company's stock worth $395,361,000 after acquiring an additional 458,257 shares in the last quarter. Impax Asset Management Group plc boosted its position in A. O. Smith by 3.4% during the third quarter. Impax Asset Management Group plc now owns 4,850,158 shares of the industrial products company's stock valued at $356,050,000 after buying an additional 157,856 shares during the period. Invesco Ltd. boosted its position in A. O. Smith by 0.8% during the fourth quarter. Invesco Ltd. now owns 4,559,612 shares of the industrial products company's stock valued at $304,947,000 after buying an additional 37,621 shares during the period. Finally, American Century Companies Inc. boosted its position in A. O. Smith by 54.2% during the third quarter. American Century Companies Inc. now owns 3,208,831 shares of the industrial products company's stock valued at $235,560,000 after buying an additional 1,128,543 shares during the period. Institutional investors own 76.10% of the company's stock.

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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