Geode Capital Management LLC Sells 44,863 Shares of Pool Corporation $POOL

Key Points

• Geode Capital Management reduced its Pool Corporation stake by 4.8% in the fourth quarter, selling 44,863 shares. Even after the sale, it still owned 882,035 shares worth about $201.4 million.
• Pool reported better-than-expected quarterly earnings of $1.43 per share, but revenue came in below analyst estimates at $1.14 billion. The company also said revenue rose 6.2% year over year and reiterated FY 2026 EPS guidance of 10.87 to 11.17.
• The board approved a $600 million share repurchase program and increased the quarterly dividend to $1.30 per share, or $5.20 annually. Pool’s dividend yield is now about 2.9%.

Geode Capital Management LLC lowered its position in shares of Pool Corporation (NASDAQ:POOL - Free Report) by 4.8% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 882,035 shares of the specialty retailer's stock after selling 44,863 shares during the quarter. Geode Capital Management LLC owned 2.37% of Pool worth $201,426,000 as of its most recent SEC filing.

Other large investors have also recently bought and sold shares of the company. Caledonia Investments PLC increased its position in shares of Pool by 5.2% in the 3rd quarter. Caledonia Investments PLC now owns 160,887 shares of the specialty retailer's stock valued at $49,886,000 after buying an additional 8,000 shares in the last quarter. Schwartz Investment Counsel Inc. bought a new position in Pool during the fourth quarter worth about $4,575,000. Silver Oak Securities Incorporated bought a new position in Pool during the fourth quarter worth about $2,399,000. King Luther Capital Management Corp grew its stake in Pool by 236.4% in the fourth quarter. King Luther Capital Management Corp now owns 11,146 shares of the specialty retailer's stock valued at $2,550,000 after acquiring an additional 7,833 shares during the period. Finally, Perigon Wealth Management LLC acquired a new position in Pool in the fourth quarter valued at about $599,000. Institutional investors own 98.99% of the company's stock.

Pool Price Performance

Shares of NASDAQ POOL opened at $179.60 on Wednesday. The firm has a market cap of $6.54 billion, a PE ratio of 16.52, a PEG ratio of 2.31 and a beta of 1.10. The company has a current ratio of 1.87, a quick ratio of 0.55 and a debt-to-equity ratio of 1.09. Pool Corporation has a 1-year low of $172.68 and a 1-year high of $345.00. The company has a fifty day moving average price of $201.16 and a 200 day moving average price of $226.44.

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

Pool announced that its Board of Directors has approved a stock repurchase program on Wednesday, April 29th that allows the company to buyback $600.00 million in outstanding shares. This buyback authorization allows the specialty retailer to repurchase up to 7.8% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

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 represents a $5.20 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend was Thursday, May 14th. This is a boost from Pool's previous quarterly dividend of $1.25. Pool's dividend payout ratio (DPR) is currently 47.84%.

Insider Activity at Pool

In related news, Director John E. Stokely bought 1,000 shares of Pool stock in a transaction that occurred on Thursday, May 7th. The stock was purchased at an average cost of $193.06 per share, with a total value of $193,060.00. Following the purchase, the director owned 16,230 shares in the company, valued at approximately $3,133,363.80. This trade represents a 6.57% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director De La Mesa Manuel J. Perez bought 10,000 shares of Pool stock in a transaction that occurred on Wednesday, May 13th. The stock was bought at an average cost of $175.95 per share, with a total value of $1,759,500.00. Following the completion of the purchase, the director owned 40,108 shares in the company, valued at approximately $7,057,002.60. This trade represents a 33.21% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders bought a total of 26,989 shares of company stock valued at $5,067,747 in the last quarter. 3.00% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Oppenheimer dropped their price target on Pool from $346.00 to $280.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 24th. Bank of America decreased their price objective on Pool from $229.00 to $226.00 and set an "underperform" rating for the company in a research report on Monday, April 20th. Wall Street Zen raised Pool from a "sell" rating to a "hold" rating in a research note on Monday, April 27th. Stifel Nicolaus dropped their target price on shares of Pool from $240.00 to $210.00 and set a "hold" rating on the stock in a report on Monday, May 11th. Finally, Zacks Research raised shares of Pool from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Four equities research 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 MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $261.38.

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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