Edgestream Partners L.P. Increases Position in A. O. Smith Corporation $AOS

Key Points

• Institutional ownership increased: Edgestream Partners L.P. boosted its A. O. Smith position by 473.5% to 71,236 shares, while other funds also raised holdings. Institutional investors now own approximately 76.1% of the company.
• Quarterly results beat expectations: A. O. Smith reported adjusted EPS of $1.03 versus the $0.96 consensus and revenue of about $1.0 billion. Management reaffirmed 2026 adjusted EPS guidance of $3.70–$3.85 and declared a $0.36 quarterly dividend.
• Analyst sentiment remains cautious: Recent target-price reductions and a consensus “Reduce” rating reflect concerns about international weakness, higher input costs and limited growth revisions. Analysts’ average price target is $67.75.

Edgestream Partners L.P. raised its position in shares of A. O. Smith Corporation (NYSE:AOS - Free Report) by 473.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 71,236 shares of the industrial products company's stock after buying an additional 58,814 shares during the period. Edgestream Partners L.P. owned about 0.05% of A. O. Smith worth $4,697,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Goldman Sachs Group Inc. increased its stake in A. O. Smith by 19.6% during the first quarter. Goldman Sachs Group Inc. now owns 939,302 shares of the industrial products company's stock worth $61,393,000 after purchasing an additional 154,201 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in A. O. Smith by 78.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company's stock worth $63,000 after buying an additional 422 shares in the last quarter. Marshall Wace LLP acquired a new position in shares of A. O. Smith in the second quarter worth $5,212,000. California Public Employees Retirement System increased its position in shares of A. O. Smith by 11.4% during the second quarter. California Public Employees Retirement System now owns 211,176 shares of the industrial products company's stock worth $13,847,000 after acquiring an additional 21,657 shares during the period. Finally, Bank of Nova Scotia boosted its holdings in A. O. Smith by 165.3% in the second quarter. Bank of Nova Scotia now owns 32,874 shares of the industrial products company's stock valued at $2,156,000 after purchasing an additional 20,485 shares during the period. Hedge funds and other institutional investors own 76.10% of the company's stock.

Wall Street Analysts Forecast Growth

AOS has been the subject of several recent research reports. Oppenheimer set a $75.00 price objective on A. O. Smith and gave the company an "outperform" rating in a research note on Wednesday, June 10th. The Goldman Sachs Group decreased their price objective on shares of A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a research report on Monday, April 13th. JPMorgan Chase & Co. restated an "underweight" rating and issued a $60.00 price target (down from $65.00) on shares of A. O. Smith in a research note on Friday, May 15th. DA Davidson set a $67.00 price objective on A. O. Smith and gave the company a "neutral" rating in a report on Monday, May 4th. Finally, Citigroup decreased their target price on A. O. Smith from $65.00 to $64.00 and set a "neutral" rating for the company in a research note on Friday. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, A. O. Smith currently has a consensus rating of "Reduce" and a consensus target price of $67.75.

More A. O. Smith News

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported adjusted EPS of $1.03, above the $0.96 consensus estimate, while sales of approximately $1.0 billion also topped forecasts. North America sales rose 5% to $820.5 million, supported by the Leonard Valve acquisition, 21% boiler sales growth and pricing actions. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: Cash generation and shareholder returns improved. Year-to-date operating cash flow increased 42% to $254 million, free cash flow climbed 67% to $233 million, and the company raised its 2026 share-repurchase target to $300 million. A. O. Smith also declared a quarterly dividend of $0.36 per share. A. O. Smith Q2 Sales Report
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. Management reiterated adjusted EPS guidance of $3.70 to $3.85 and sales growth of 2% to 3%; the midpoint is close to the analyst consensus. The company’s earnings beat and boiler momentum provide support, but the outlook does not represent a major upward revision. A. O. Smith Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: International weakness and costs remain concerns. Rest of World sales fell 19%, primarily because of continued weakness in China’s consumer-appliance market. Quarterly revenue declined slightly year over year, adjusted EPS was below the prior-year result, and higher input costs pressured profitability. A. O. Smith Q2 Earnings Beat Estimates
• Negative Sentiment: Analysts lowered their valuation targets. Citigroup cut its target to $64 from $65 and kept a neutral rating, while Stifel reduced its target to $70 from $76 but maintained a buy rating. The reductions may limit upside sentiment despite both targets remaining above the recent trading level. Analyst Price Target Changes

A. O. Smith Stock Performance

Shares of A. O. Smith stock opened at $60.31 on Friday. The firm's fifty day simple moving average is $59.56 and its 200-day simple moving average is $65.39. A. O. Smith Corporation has a 12 month low of $54.16 and a 12 month high of $81.86. The stock has a market capitalization of $8.31 billion, a price-to-earnings ratio of 16.75, a PEG ratio of 1.33 and a beta of 1.16. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.59 and a quick ratio of 1.00.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.07. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The company had revenue of $1 billion for the quarter, compared to the consensus estimate of $994.89 million. During the same period last year, the firm posted $1.07 EPS. A. O. Smith's revenue for the quarter was down .7% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. As a group, equities analysts forecast that A. O. Smith Corporation will post 3.74 earnings per share for the current year.

A. O. Smith Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be issued a $0.36 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.4%. A. O. Smith's payout ratio is presently 38.30%.

A. O. Smith Profile

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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