Bridges Investment Management Inc. Trims Position in Pool Corporation $POOL

Key Points

• Bridges Investment Management cut its Pool Corporation stake by 41% in the fourth quarter, selling 28,640 shares and ending with 41,266 shares worth about $9.44 million.
• Pool reported Q1 earnings of $1.43 per share, beating estimates, though revenue of $1.14 billion fell short of expectations; the company also raised its quarterly dividend to $1.30 and authorized a $600 million share repurchase program.
• Analysts currently have a Hold consensus on Pool, with a consensus price target of $261.38, while the stock was trading near $179.60—well below its 50-day and 200-day moving averages.

Bridges Investment Management Inc. lessened its stake in Pool Corporation (NASDAQ:POOL - Free Report) by 41.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 41,266 shares of the specialty retailer's stock after selling 28,640 shares during the period. Bridges Investment Management Inc. owned 0.11% of Pool worth $9,440,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in the stock. MUFG Securities EMEA plc increased its stake in Pool by 114.3% in the 4th quarter. MUFG Securities EMEA plc now owns 1,348 shares of the specialty retailer's stock worth $308,000 after buying an additional 719 shares during the period. BNP Paribas Financial Markets increased its stake in Pool by 49.1% in the 4th quarter. BNP Paribas Financial Markets now owns 78,086 shares of the specialty retailer's stock worth $17,862,000 after buying an additional 25,731 shares during the period. AdvisorShares Investments LLC increased its position in Pool by 31.4% during the 4th quarter. AdvisorShares Investments LLC now owns 2,093 shares of the specialty retailer's stock valued at $479,000 after purchasing an additional 500 shares during the period. Norges Bank purchased a new position in Pool during the 4th quarter valued at about $97,612,000. Finally, Eurizon Capital SGR S.p.A. purchased a new position in Pool during the 4th quarter valued at about $59,000. Hedge funds and other institutional investors own 98.99% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Zacks Research raised shares of Pool from a "strong sell" rating to a "hold" rating in a research report on Monday, April 27th. Deutsche Bank Aktiengesellschaft set a $246.00 target price on shares of Pool in a research report on Friday, February 20th. Robert W. Baird cut their target price on shares of Pool from $320.00 to $300.00 and set an "outperform" rating on the stock in a research report on Friday, February 20th. Oppenheimer cut their target price on shares of Pool from $346.00 to $280.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 24th. Finally, Wall Street Zen raised shares of Pool from a "sell" rating to a "hold" rating in a research report on Monday, April 27th. Four analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $261.38.

Pool Stock Down 1.4%

Shares of Pool stock opened at $179.60 on Wednesday. The firm's 50 day moving average price is $201.16 and its 200-day moving average price is $226.44. The company has a quick ratio of 0.55, a current ratio of 1.87 and a debt-to-equity ratio of 1.09. Pool Corporation has a 52-week low of $172.68 and a 52-week high of $345.00. The company has a market cap of $6.54 billion, a P/E ratio of 16.52, a PEG ratio of 2.31 and a beta of 1.10.

Pool (NASDAQ:POOL - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The specialty retailer reported $1.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.34 by $0.09. Pool had a net margin of 7.57% and a return on equity of 32.37%. The firm had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.82 billion. During the same quarter in the previous year, the firm earned $1.32 EPS. The company's quarterly revenue was up 6.2% compared to the same quarter last year. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. On average, sell-side analysts predict that Pool Corporation will post 11.08 EPS for the current fiscal year.

Pool Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 14th were paid a $1.30 dividend. This is a boost from Pool's previous quarterly dividend of $1.25. The ex-dividend date was Thursday, May 14th. This represents a $5.20 dividend on an annualized basis and a yield of 2.9%. Pool's dividend payout ratio (DPR) is 47.84%.

Pool announced that its board has approved a share repurchase program on Wednesday, April 29th that authorizes the company to repurchase $600.00 million in shares. This repurchase authorization authorizes the specialty retailer to repurchase up to 7.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are undervalued.

Insider Activity at Pool

In related news, Director John E. Stokely bought 1,000 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average cost of $193.06 per share, for a total transaction of $193,060.00. Following the purchase, the director directly owned 16,230 shares of the company's stock, valued at approximately $3,133,363.80. This trade represents a 6.57% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director James D. Hope bought 464 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average price of $194.41 per share, with a total value of $90,206.24. Following the completion of the purchase, the director directly owned 3,678 shares in the company, valued at $715,039.98. This represents a 14.44% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased 26,989 shares of company stock valued at $5,067,747 over the last 90 days. Company insiders own 3.00% of the company's stock.

Pool Company Profile

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation's extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company's product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.

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