A. O. Smith Corporation $AOS Shares Purchased by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors increased its A. O. Smith stake by 3.4% in the first quarter, acquiring 64,873 additional shares and bringing its ownership to approximately 1.42%. Institutional investors collectively hold 76.1% of the company’s stock.
• A. O. Smith reported quarterly EPS of $0.85 and revenue of $945.6 million, missing analyst estimates and declining 1.9% year over year. Shares recently traded at $62.51, within a 52-week range of $54.16 to $81.86.
• The company declared a quarterly dividend of $0.36 per share, representing a 2.3% annualized yield. Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $68.62.

Dimensional Fund Advisors LP raised its stake in A. O. Smith Corporation (NYSE:AOS - Free Report) by 3.4% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 1,959,696 shares of the industrial products company's stock after buying an additional 64,873 shares during the quarter. Dimensional Fund Advisors LP owned approximately 1.42% of A. O. Smith worth $129,202,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Parallel Advisors LLC raised its holdings in shares of A. O. Smith by 24.4% during the first quarter. Parallel Advisors LLC now owns 2,172 shares of the industrial products company's stock valued at $143,000 after buying an additional 426 shares during the last quarter. Regents Gate Capital LLP increased its position in A. O. Smith by 33.6% in the 1st quarter. Regents Gate Capital LLP now owns 263,951 shares of the industrial products company's stock valued at $17,405,000 after acquiring an additional 66,387 shares during the period. California Public Employees Retirement System raised its stake in A. O. Smith by 5.8% during the 1st quarter. California Public Employees Retirement System now owns 236,011 shares of the industrial products company's stock valued at $15,563,000 after acquiring an additional 12,888 shares in the last quarter. John G Ullman & Associates Inc. raised its stake in A. O. Smith by 14.4% during the 1st quarter. John G Ullman & Associates Inc. now owns 11,100 shares of the industrial products company's stock valued at $732,000 after acquiring an additional 1,400 shares in the last quarter. Finally, Kera Capital Partners Inc. boosted its position in A. O. Smith by 20.0% during the 1st quarter. Kera Capital Partners Inc. now owns 5,477 shares of the industrial products company's stock worth $361,000 after acquiring an additional 911 shares during the period. Institutional investors and hedge funds own 76.10% of the company's stock.

A. O. Smith Stock Performance

NYSE:AOS opened at $62.51 on Tuesday. The company has a 50-day moving average of $59.19 and a 200-day moving average of $65.59. The firm has a market cap of $8.62 billion, a price-to-earnings ratio of 16.63, a price-to-earnings-growth ratio of 1.35 and a beta of 1.16. The company has a current ratio of 1.56, a quick ratio of 1.00 and a debt-to-equity ratio of 0.31. A. O. Smith Corporation has a twelve month low of $54.16 and a twelve month high of $81.86.

A. O. Smith (NYSE:AOS - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $0.85 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 business had revenue of $945.60 million during the quarter, compared to the consensus estimate of $974.06 million. During the same quarter in the previous year, the firm earned $0.95 earnings per share. The firm's revenue for the quarter was down 1.9% compared to the same quarter last year. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. Analysts forecast that A. O. Smith Corporation will post 3.74 earnings per share for the current fiscal year.

A. O. Smith Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be given a dividend of $0.36 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.3%. A. O. Smith's payout ratio is 38.30%.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. DA Davidson set a $67.00 price target on A. O. Smith and gave the stock a "neutral" rating in a research note on Monday, May 4th. Stifel Nicolaus set a $76.00 price objective on shares of A. O. Smith and gave the company a "buy" rating in a research note on Monday, July 20th. Citigroup reduced their price objective on shares of A. O. Smith from $74.00 to $65.00 and set a "neutral" rating for the company in a report on Monday, May 4th. JPMorgan Chase & Co. reiterated an "underweight" rating and issued a $60.00 target price (down from $65.00) on shares of A. O. Smith in a research report on Friday, May 15th. Finally, The Goldman Sachs Group lowered their target price 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 investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $68.62.

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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