A. O. Smith Corporation $AOS Position Raised by Nomura Asset Management Co. Ltd.

Key Points

• Nomura Asset Management increased its stake in A. O. Smith by 3.8% in the fourth quarter, bringing its holdings to 1,179,709 shares worth about $78.9 million.
• Several analysts remain cautious on the stock: JPMorgan lowered its price target to $60 and kept an underweight rating, while the overall consensus rating is “Reduce” with an average target price of $69.89.
• A. O. Smith recently reported missed earnings and revenue estimates for the quarter, though it still announced a quarterly dividend of $0.36 per share, or $1.44 annually, for a 2.5% yield.

Nomura Asset Management Co. Ltd. raised its stake in A. O. Smith Corporation (NYSE:AOS - Free Report) by 3.8% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 1,179,709 shares of the industrial products company's stock after buying an additional 43,320 shares during the quarter. Nomura Asset Management Co. Ltd. owned approximately 0.85% of A. O. Smith worth $78,899,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in AOS. Creative Financial Designs Inc. ADV raised its stake in shares of A. O. Smith by 3,481.8% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company's stock valued at $26,000 after purchasing an additional 383 shares in the last quarter. Rothschild Investment LLC raised its stake in shares of A. O. Smith by 3,125.0% during the third quarter. Rothschild Investment LLC now owns 387 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 375 shares in the last quarter. Torren Management LLC bought a new stake in shares of A. O. Smith during the fourth quarter valued at about $31,000. Eagle Bay Advisors LLC bought a new stake in shares of A. O. Smith during the fourth quarter valued at about $32,000. Finally, Larson Financial Group LLC raised its stake in shares of A. O. Smith by 67.9% during the third quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company's stock valued at $36,000 after purchasing an additional 197 shares in the last quarter. 76.10% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of brokerages recently weighed in on AOS. JPMorgan Chase & Co. restated an "underweight" rating and set a $60.00 price objective (down from $65.00) on shares of A. O. Smith in a research note on Friday, May 15th. Robert W. Baird set a $70.00 price objective on shares of A. O. Smith in a research note on Friday, May 1st. Zacks Research cut shares of A. O. Smith from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 6th. Citigroup cut their price objective on shares of 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. Finally, The Goldman Sachs Group cut their price objective on shares of A. O. Smith from $69.00 to $61.00 and set a "sell" rating on the stock in a research note on Monday, April 13th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, A. O. Smith has an average rating of "Reduce" and an average target price of $69.89.

Insider Transactions at A. O. Smith

In related news, SVP Darrell W. Schuh sold 1,104 shares of A. O. Smith stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total transaction of $82,126.56. Following the transaction, the senior vice president directly owned 2,201 shares of the company's stock, valued at $163,732.39. The trade was a 33.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.50% of the stock is currently owned by insiders.

A. O. Smith Price Performance

NYSE:AOS opened at $56.80 on Friday. The business's 50-day moving average price is $62.22 and its 200 day moving average price is $67.65. The firm has a market cap of $7.83 billion, a P/E ratio of 15.11, a PEG ratio of 1.25 and a beta of 1.23. A. O. Smith Corporation has a 52-week low of $54.16 and a 52-week high of $81.86. The company has a quick ratio of 1.00, a current ratio of 1.56 and a debt-to-equity ratio of 0.31.

A. O. Smith (NYSE:AOS - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $0.85 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.94 by ($0.09). The firm had revenue of $945.60 million for the quarter, compared to analyst estimates of $974.06 million. A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.A. O. Smith's revenue was down 1.9% on a year-over-year basis. During the same period in the previous year, the firm earned $0.95 earnings per share. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. As a group, sell-side analysts predict that A. O. Smith Corporation will post 3.78 earnings per share for the current fiscal year.

A. O. Smith Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Thursday, April 30th were issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Thursday, April 30th. A. O. Smith's payout ratio is presently 38.30%.

A. O. Smith 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.

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