Bank of New York Mellon Corp Raises Stake in A. O. Smith Corporation $AOS

Key Points

• Bank of New York Mellon increased its stake in A. O. Smith by 30.9% in the fourth quarter, adding 326,833 shares to bring its holding to 1,383,057 shares worth about $92.5 million.
• A. O. Smith’s latest quarter showed weaker-than-expected results, with EPS of $0.85 versus the $0.94 consensus and revenue of $945.6 million below estimates. Revenue also fell 1.9% year over year.
• The company continues to pay a quarterly dividend of $0.36 per share, implying an annualized yield of about 2.5%. Meanwhile, analysts are mixed, with an average rating of “Reduce” and a mean price target of $69.89.

Bank of New York Mellon Corp raised its position in A. O. Smith Corporation (NYSE:AOS - Free Report) by 30.9% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,383,057 shares of the industrial products company's stock after acquiring an additional 326,833 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.99% of A. O. Smith worth $92,499,000 as of its most recent SEC filing.

Other institutional investors also recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted 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 worth $1,009,622,000 after buying an additional 683,176 shares during the last quarter. Impax Asset Management Group plc lifted its position in shares of A. O. Smith by 3.4% during the 3rd quarter. Impax Asset Management Group plc now owns 4,850,158 shares of the industrial products company's stock worth $356,050,000 after buying an additional 157,856 shares during the last quarter. American Century Companies Inc. lifted its position in shares of A. O. Smith by 54.2% during the 3rd quarter. American Century Companies Inc. now owns 3,208,831 shares of the industrial products company's stock worth $235,560,000 after buying an additional 1,128,543 shares during the last quarter. First Trust Advisors LP lifted its position in shares of A. O. Smith by 4.6% during the 3rd quarter. First Trust Advisors LP now owns 2,508,947 shares of the industrial products company's stock worth $184,182,000 after buying an additional 109,654 shares during the last quarter. Finally, ProShare Advisors LLC lifted its position in shares of A. O. Smith by 2.6% during the 4th quarter. ProShare Advisors LLC now owns 2,344,631 shares of the industrial products company's stock worth $156,809,000 after buying an additional 60,260 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

A. O. Smith Stock Performance

Shares of AOS opened at $57.37 on Tuesday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56. The stock has a market capitalization of $7.91 billion, a P/E ratio of 15.26, a P/E/G ratio of 1.26 and a beta of 1.18. The company's fifty day moving average is $61.21 and its two-hundred day moving average is $67.32. A. O. Smith Corporation has a 1 year low of $54.16 and a 1 year high of $81.86.

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

A. O. Smith Announces Dividend

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

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on AOS. Oppenheimer restated an "outperform" rating and set a $80.00 price objective on shares of A. O. Smith in a research report on Friday, May 1st. Weiss Ratings downgraded shares of A. O. Smith from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 27th. Citigroup cut their target price on shares of A. O. Smith from $74.00 to $65.00 and set a "neutral" rating on the stock in a report on Monday, May 4th. DA Davidson set a $67.00 target price on shares of A. O. Smith and gave the company a "neutral" rating in a report on Monday, May 4th. Finally, Robert W. Baird set a $70.00 target price on shares of A. O. Smith in a report on Friday, May 1st. Two research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, A. O. Smith has an average rating of "Reduce" and an average price target of $69.89.

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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