Clearline Capital LP Buys Shares of 32,355 Pool Corporation $POOL

Key Points

• Clearline Capital LP initiated a new position in Pool Corporation, buying 32,355 shares valued at about $7.4 million in the fourth quarter. The stake represented roughly 0.09% of the company.
• Institutional ownership of Pool remains extremely high, with 98.99% of shares held by hedge funds and other institutions. Several firms, including Wellington Management, Morgan Stanley, and T. Rowe Price, either increased or started positions.
• Pool recently reported better-than-expected EPS of $1.43, raised its quarterly dividend to $1.30 per share, and authorized a $600 million share buyback. Analysts currently rate the stock a consensus Hold with a target price of $261.38.

Clearline Capital LP bought a new stake in shares of Pool Corporation (NASDAQ:POOL - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 32,355 shares of the specialty retailer's stock, valued at approximately $7,401,000. Clearline Capital LP owned about 0.09% of Pool at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Wellington Management Group LLP boosted its stake in Pool by 16.2% during the 3rd quarter. Wellington Management Group LLP now owns 2,563,373 shares of the specialty retailer's stock valued at $794,825,000 after purchasing an additional 357,643 shares during the last quarter. Morgan Stanley lifted its holdings in shares of Pool by 1.8% during the 4th quarter. Morgan Stanley now owns 1,371,772 shares of the specialty retailer's stock valued at $313,794,000 after buying an additional 23,736 shares during the period. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Pool by 2,435.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,290,958 shares of the specialty retailer's stock valued at $295,307,000 after buying an additional 1,240,041 shares during the period. Norges Bank bought a new position in shares of Pool during the 4th quarter valued at $97,612,000. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Pool by 29.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 420,644 shares of the specialty retailer's stock valued at $96,229,000 after buying an additional 96,173 shares during the period. 98.99% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on POOL. Wells Fargo & Company lowered their price target on Pool from $230.00 to $215.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 8th. Wall Street Zen raised Pool from a "sell" rating to a "hold" rating in a report on Monday, April 27th. Oppenheimer lowered their price target on Pool from $346.00 to $280.00 and set an "outperform" rating on the stock in a report on Tuesday, February 24th. Robert W. Baird lowered their price target on Pool from $320.00 to $300.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Finally, Weiss Ratings cut Pool from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, May 14th. Four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $261.38.

Key Stories Impacting Pool

Here are the key news stories impacting Pool this week:

• Neutral Sentiment: Recent articles are centered on the Lincoln Memorial Reflecting Pool algae issue and related political coverage, which is unrelated to Pool Corporation’s business and is unlikely to have a direct impact on POOL shares.
• Neutral Sentiment: No company-specific earnings, guidance, analyst, or acquisition news was included in the latest headlines, so the stock’s move appears more likely tied to broader market sentiment than a fundamental update for Pool Corporation.

Pool Price Performance

NASDAQ:POOL opened at $194.34 on Thursday. The company has a quick ratio of 0.55, a current ratio of 1.87 and a debt-to-equity ratio of 1.09. The business's 50-day simple moving average is $197.94 and its two-hundred day simple moving average is $222.02. The stock has a market cap of $7.08 billion, a PE ratio of 17.88, a P/E/G ratio of 2.51 and a beta of 1.10. Pool Corporation has a 52 week low of $172.68 and a 52 week high of $345.00.

Pool (NASDAQ:POOL - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The specialty retailer reported $1.43 EPS for the quarter, beating analysts' consensus estimates of $1.34 by $0.09. The business had revenue of $1.14 billion for the quarter, compared to analysts' expectations of $1.82 billion. Pool had a return on equity of 32.37% and a net margin of 7.57%.The business's quarterly revenue was up 6.2% on a year-over-year basis. During the same period last year, the firm earned $1.32 earnings per share. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. As a group, analysts forecast that Pool Corporation will post 11.08 EPS for the current fiscal year.

Pool Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 14th were issued a dividend of $1.30 per share. This is a boost from Pool's previous quarterly dividend of $1.25. This represents a $5.20 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Thursday, May 14th. Pool's payout ratio is 47.84%.

Pool declared that its Board of Directors has authorized a share buyback plan on Wednesday, April 29th that permits the company to buyback $600.00 million in shares. This buyback authorization permits the specialty retailer to reacquire up to 7.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other Pool news, Director James D. Hope purchased 464 shares of the firm's stock in a transaction on Thursday, May 7th. The shares were acquired at an average cost of $194.41 per share, with a total value of $90,206.24. Following the completion of the acquisition, the director directly owned 3,678 shares in the company, valued at $715,039.98. The trade was a 14.44% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director David G. Whalen acquired 525 shares of the business's stock in a transaction dated Friday, May 8th. The shares were purchased at an average price of $190.44 per share, with a total value of $99,981.00. Following the transaction, the director owned 8,936 shares of the company's stock, valued at approximately $1,701,771.84. This represents a 6.24% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired 21,989 shares of company stock valued at $4,042,747 in the last ninety days. Insiders own 3.00% of the company's stock.

About Pool

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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