A. O. Smith Corporation $AOS Shares Bought by Vanguard Group Inc.

Key Points

• Vanguard Group increased its stake in A. O. Smith by 4.7% to 15,096,018 shares, owning about 10.84% of the company worth roughly $1.01 billion at the end of the quarter.
• A. O. Smith missed Q1 estimates (EPS $0.85 vs. ~$0.94; revenue $945.6M vs. ~$974M) and cut FY‑2026 EPS guidance to $3.60–$3.90 (adjusted $3.70–$4.00), citing weakness in China and triggering analyst downgrades and lower price targets.
• The company declared a quarterly dividend of $0.36 (annualized $1.44, ~2.4% yield) while the stock trades near $60 with a P/E of ~15.6 and a consensus analyst rating of Hold (average target $72.33).

Vanguard Group Inc. boosted its position in shares of A. O. Smith Corporation (NYSE:AOS - Free Report) by 4.7% in the fourth quarter, according to the company in its most recent filing with the SEC. The firm owned 15,096,018 shares of the industrial products company's stock after acquiring an additional 683,176 shares during the quarter. Vanguard Group Inc. owned about 10.84% of A. O. Smith worth $1,009,622,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Impax Asset Management Group plc boosted its position in A. O. Smith by 3.4% in 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 last quarter. American Century Companies Inc. boosted its position in A. O. Smith by 54.2% in 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 last quarter. First Trust Advisors LP boosted its position in A. O. Smith by 4.6% in the third quarter. First Trust Advisors LP now owns 2,508,947 shares of the industrial products company's stock valued at $184,182,000 after buying an additional 109,654 shares during the last quarter. Earnest Partners LLC boosted its position in A. O. Smith by 1.8% in the third quarter. Earnest Partners LLC now owns 2,082,982 shares of the industrial products company's stock valued at $152,912,000 after buying an additional 36,122 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in A. O. Smith by 2.1% in the third quarter. Dimensional Fund Advisors LP now owns 1,871,694 shares of the industrial products company's stock valued at $137,393,000 after buying an additional 38,694 shares during the last quarter. Institutional investors and hedge funds own 76.10% of the company's stock.

A. O. Smith Trading Down 2.4%

Shares of NYSE:AOS opened at $60.34 on Friday. The business has a 50 day moving average of $67.68 and a two-hundred day moving average of $68.96. A. O. Smith Corporation has a 12-month low of $59.83 and a 12-month high of $81.86. The company has a market capitalization of $8.34 billion, a PE ratio of 15.63, a PEG ratio of 1.29 and a beta of 1.23. The company has a current ratio of 1.56, a quick ratio of 0.94 and a debt-to-equity ratio of 0.31.

A. O. Smith (NYSE:AOS - Get Free Report) last announced its quarterly 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). A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The firm had revenue of $945.60 million for the quarter, compared to analysts' expectations of $974.06 million. During the same period last year, the company posted $0.95 earnings per share. The business's quarterly revenue was down 1.9% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. As a group, analysts forecast that A. O. Smith Corporation will post 4 EPS for the current year.

A. O. Smith Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Thursday, April 30th will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Thursday, April 30th. A. O. Smith's payout ratio is currently 37.31%.

Insider Buying and Selling 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 value of $82,126.56. Following the completion of the transaction, the senior vice president owned 2,201 shares in the company, valued at $163,732.39. The trade was a 33.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.50% of the stock is currently owned by corporate insiders.

Key Stories Impacting A. O. Smith

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Strong cash generation and free cash flow improved materially in Q1, supporting balance‑sheet strength and giving management flexibility for operations and acquisitions. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
• Positive Sentiment: North America sales rose (helped by the Leonard Valve acquisition and pricing), partially offsetting international weakness and showing the business can sustain margins in its largest market. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
• Neutral Sentiment: Management hosted an earnings call and published the slide deck and transcript; these provide more detail on segment dynamics and cost actions but do not change the headline miss. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Q1 results missed expectations — EPS $0.85 vs. consensus ~$0.94 and revenue ~$946M vs. ~$974M — showing a year‑over‑year decline and prompting investor concern about near‑term demand. A.O. Smith Q1 Earnings and Revenues Lag Estimates
• Negative Sentiment: Management lowered FY‑2026 EPS guidance to $3.60–$3.90 (adjusted $3.70–$4.00), below the prior consensus (~$3.98), which reduces near‑term earnings visibility and drove downgrades. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
• Negative Sentiment: Persistent weakness in China’s consumer appliance market materially pressured Rest‑of‑World sales (down ~11%), a key reason for the guidance cut and the earnings miss. A. O. Smith Misses Earnings & Sales Estimates in Q1, Lowers 26' View
• Negative Sentiment: JPMorgan cut its price target (from $75 to $65) and set a neutral rating, signaling lower broker enthusiasm and limiting near‑term upside. JPMorgan Lowers Price Target

Analysts Set New Price Targets

A number of brokerages recently commented on AOS. Wall Street Zen lowered A. O. Smith from a "buy" rating to a "hold" rating in a research report on Saturday, February 14th. Oppenheimer reiterated an "outperform" rating and issued a $80.00 target price on shares of A. O. Smith in a research report on Friday. The Goldman Sachs Group dropped their target price on A. O. Smith from $69.00 to $61.00 and set a "sell" rating on the stock in a research report on Monday, April 13th. Jefferies Financial Group set a $75.00 price objective on A. O. Smith and gave the company a "hold" rating in a research note on Friday, January 9th. Finally, Citigroup reduced their price objective on A. O. Smith from $78.00 to $74.00 and set a "neutral" rating for the company in a research note on Monday, April 13th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $72.33.

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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