Carnegie Investment Counsel Makes New $2.01 Million Investment in Pool Corporation (NASDAQ:POOL)

Key Points

• Carnegie Investment Counsel has acquired a new position in Pool Corporation, purchasing 6,619 shares valued at approximately $2.01 million during the first quarter.
• Pool Corporation's board has authorized a share buyback plan of up to $600 million, allowing the company to repurchase about 5.4% of its shares, indicating a belief that its stock is undervalued.
• Pool recently increased its quarterly dividend from $1.20 to $1.25 per share, representing an annualized dividend of $5.00 and a yield of 1.54% with a payout ratio of 46.90%.

Carnegie Investment Counsel bought a new position in shares of Pool Corporation (NASDAQ:POOL - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 6,619 shares of the specialty retailer's stock, valued at approximately $2,006,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Whipplewood Advisors LLC grew its stake in shares of Pool by 471.4% in the first quarter. Whipplewood Advisors LLC now owns 80 shares of the specialty retailer's stock worth $25,000 after purchasing an additional 66 shares during the last quarter. City Holding Co. bought a new stake in shares of Pool in the first quarter worth $26,000. Sentry Investment Management LLC bought a new stake in shares of Pool in the first quarter worth $30,000. Versant Capital Management Inc grew its stake in shares of Pool by 790.9% in the first quarter. Versant Capital Management Inc now owns 98 shares of the specialty retailer's stock worth $31,000 after purchasing an additional 87 shares during the last quarter. Finally, FWL Investment Management LLC bought a new stake in shares of Pool in the fourth quarter worth $39,000. Institutional investors own 98.99% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have commented on POOL shares. Stifel Nicolaus set a $300.00 price target on shares of Pool in a research report on Friday, April 25th. Wall Street Zen raised shares of Pool from a "sell" rating to a "hold" rating in a research report on Saturday. Deutsche Bank Aktiengesellschaft started coverage on shares of Pool in a research report on Tuesday, April 1st. They set a "hold" rating and a $344.00 price target on the stock. Stephens cut their price target on shares of Pool from $400.00 to $350.00 and set an "overweight" rating on the stock in a research report on Monday, April 28th. Finally, Wells Fargo & Company upped their price target on shares of Pool from $300.00 to $320.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Six equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $338.71.

Pool Stock Down 0.6%

Shares of NASDAQ POOL traded down $1.86 during trading on Monday, hitting $323.04. 311,400 shares of the company traded hands, compared to its average volume of 526,483. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.87 and a current ratio of 2.52. Pool Corporation has a fifty-two week low of $282.22 and a fifty-two week high of $395.60. The firm has a market capitalization of $12.14 billion, a price-to-earnings ratio of 29.73, a P/E/G ratio of 4.53 and a beta of 1.10. The business's fifty day moving average is $301.28 and its 200 day moving average is $317.77.

Pool (NASDAQ:POOL - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The specialty retailer reported $5.17 earnings per share for the quarter, beating the consensus estimate of $5.12 by $0.05. Pool had a net margin of 7.79% and a return on equity of 30.99%. The business had revenue of $1.78 billion for the quarter, compared to analysts' expectations of $1.79 billion. During the same quarter last year, the firm earned $4.99 EPS. The firm's revenue for the quarter was up .9% compared to the same quarter last year. Equities research analysts predict that Pool Corporation will post 11.32 earnings per share for the current fiscal year.

Pool declared that its Board of Directors has authorized a stock buyback plan on Wednesday, April 30th that allows the company to repurchase $600.00 million in outstanding shares. This repurchase authorization allows the specialty retailer to buy up to 5.4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board believes its shares are undervalued.

Pool Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 29th. Investors of record on Thursday, May 15th were given a $1.25 dividend. This is a boost from Pool's previous quarterly dividend of $1.20. The ex-dividend date was Thursday, May 15th. This represents a $5.00 annualized dividend and a yield of 1.55%. Pool's dividend payout ratio (DPR) is presently 46.13%.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling.