Ethic Inc. Cuts Stock Holdings in A. O. Smith Corporation $AOS

Key Points

• Ethic Inc. reduced its holdings in A. O. Smith by 35.2%, selling 3,918 shares, resulting in a total ownership of 7,213 shares valued at $473,000.
• A. O. Smith's recent earnings report showed an EPS of $1.07, surpassing estimates, while quarterly revenue dipped 1.3% year-over-year.
• The company announced a quarterly dividend of $0.34 per share, reflecting an annualized yield of 1.9% and a payout ratio of 37.88%.

Ethic Inc. trimmed its stake in shares of A. O. Smith Corporation (NYSE:AOS - Free Report) by 35.2% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 7,213 shares of the industrial products company's stock after selling 3,918 shares during the period. Ethic Inc.'s holdings in A. O. Smith were worth $473,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the stock. Beverly Hills Private Wealth LLC lifted its position in A. O. Smith by 3.1% during the first quarter. Beverly Hills Private Wealth LLC now owns 5,847 shares of the industrial products company's stock valued at $382,000 after purchasing an additional 176 shares during the last quarter. Allspring Global Investments Holdings LLC lifted its position in A. O. Smith by 3.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 5,532 shares of the industrial products company's stock valued at $363,000 after purchasing an additional 177 shares during the last quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group lifted its position in A. O. Smith by 1.2% during the first quarter. Vienna Powszechne Towarzystwo Emerytalne S.A. Vienna Insurance Group now owns 15,607 shares of the industrial products company's stock valued at $1,020,000 after purchasing an additional 184 shares during the last quarter. National Pension Service lifted its position in A. O. Smith by 74.8% during the first quarter. National Pension Service now owns 458 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 196 shares during the last quarter. Finally, TCTC Holdings LLC lifted its position in A. O. Smith by 69.9% during the first quarter. TCTC Holdings LLC now owns 491 shares of the industrial products company's stock valued at $32,000 after purchasing an additional 202 shares during the last quarter. 76.10% of the stock is owned by hedge funds and other institutional investors.

A. O. Smith Trading Up 0.1%

AOS stock traded up $0.06 during trading on Wednesday, hitting $72.44. The company had a trading volume of 1,111,854 shares, compared to its average volume of 1,097,817. The firm has a market capitalization of $10.15 billion, a P/E ratio of 20.18, a PEG ratio of 1.57 and a beta of 1.22. A. O. Smith Corporation has a 52-week low of $58.83 and a 52-week high of $92.06. The company has a 50 day simple moving average of $69.66 and a 200-day simple moving average of $67.15. The company has a quick ratio of 1.03, a current ratio of 1.65 and a debt-to-equity ratio of 0.15.

A. O. Smith (NYSE:AOS - Get Free Report) last posted its earnings results on Thursday, July 24th. The industrial products company reported $1.07 EPS for the quarter, beating analysts' consensus estimates of $0.97 by $0.10. The business had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $997.89 million. A. O. Smith had a net margin of 13.68% and a return on equity of 28.42%. The company's revenue for the quarter was down 1.3% on a year-over-year basis. During the same quarter last year, the firm posted $1.06 EPS. A. O. Smith has set its FY 2025 guidance at 3.700-3.900 EPS. As a group, research analysts forecast that A. O. Smith Corporation will post 3.76 earnings per share for the current fiscal year.

A. O. Smith Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 15th. Shareholders of record on Thursday, July 31st were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Thursday, July 31st. This represents a $1.36 dividend on an annualized basis and a yield of 1.9%. A. O. Smith's dividend payout ratio (DPR) is 37.88%.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Stifel Nicolaus increased their price objective on shares of A. O. Smith from $78.00 to $81.00 and gave the company a "buy" rating in a research report on Monday, July 21st. Oppenheimer increased their price objective on shares of A. O. Smith from $82.00 to $88.00 and gave the company an "outperform" rating in a research report on Monday, July 28th. Weiss Ratings reiterated a "hold (c)" rating on shares of A. O. Smith in a research report on Thursday, August 14th. Wall Street Zen upgraded shares of A. O. Smith from a "hold" rating to a "buy" rating in a report on Friday, August 22nd. Finally, JPMorgan Chase & Co. began coverage on shares of A. O. Smith in a report on Tuesday, June 24th. They issued a "neutral" rating and a $70.00 target price for the company. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $77.43.

Insider Buying and Selling

In other A. O. Smith news, Chairman Kevin J. Wheeler sold 22,200 shares of the firm's stock in a transaction dated Wednesday, July 30th. The shares were sold at an average price of $71.26, for a total transaction of $1,581,972.00. Following the transaction, the chairman owned 100,647 shares of the company's stock, valued at approximately $7,172,105.22. This trade represents a 18.07% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.76% of the company's stock.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.