Handelsbanken Fonder AB Trims Holdings in A. O. Smith Corporation $AOS

Key Points

• Handelsbanken Fonder AB cut its A. O. Smith stake by 46.9% in the fourth quarter, leaving it with 28,500 shares worth about $1.91 million.
• Wall Street sentiment remains cautious: several firms recently lowered ratings, and the stock now carries a consensus “Reduce” rating with a $69.89 average price target.
• A. O. Smith reported quarterly EPS of $0.85, missing estimates, while revenue also came in below expectations; the company still paid a $0.36 quarterly dividend for a 2.5% yield.

Handelsbanken Fonder AB decreased its stake in shares of A. O. Smith Corporation (NYSE:AOS - Free Report) by 46.9% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 28,500 shares of the industrial products company's stock after selling 25,200 shares during the quarter. Handelsbanken Fonder AB's holdings in A. O. Smith were worth $1,906,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Resona Asset Management Co. Ltd. lifted its position in A. O. Smith by 5.5% during the fourth quarter. Resona Asset Management Co. Ltd. now owns 29,336 shares of the industrial products company's stock worth $1,997,000 after buying an additional 1,522 shares in the last quarter. ProShare Advisors LLC lifted its position in A. O. Smith by 2.6% during the fourth quarter. ProShare Advisors LLC now owns 2,344,631 shares of the industrial products company's stock worth $156,809,000 after buying an additional 60,260 shares in the last quarter. HighTower Advisors LLC lifted its position in A. O. Smith by 6.7% during the fourth quarter. HighTower Advisors LLC now owns 14,042 shares of the industrial products company's stock worth $939,000 after buying an additional 878 shares in the last quarter. North Dakota State Investment Board purchased a new position in A. O. Smith during the fourth quarter worth approximately $261,000. Finally, Canada Post Corp Registered Pension Plan lifted its position in A. O. Smith by 28.6% during the fourth quarter. Canada Post Corp Registered Pension Plan now owns 2,745 shares of the industrial products company's stock worth $184,000 after buying an additional 610 shares in the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on AOS. Zacks Research downgraded A. O. Smith from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 6th. DA Davidson set a $67.00 target price on A. O. Smith and gave the stock a "neutral" rating in a research note on Monday, May 4th. Wall Street Zen cut A. O. Smith from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Robert W. Baird set a $70.00 target price on A. O. Smith in a research note on Friday, May 1st. Finally, JPMorgan Chase & Co. reissued an "underweight" rating and set a $60.00 target price (down from $65.00) on shares of A. O. Smith in a research note on Friday, May 15th. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $69.89.

Insider Buying and Selling at A. O. Smith

In other news, SVP Darrell W. Schuh sold 1,104 shares of A. O. Smith stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total value of $82,126.56. Following the completion of the sale, the senior vice president directly owned 2,201 shares of the company's stock, valued at approximately $163,732.39. The trade was a 33.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.50% of the company's stock.

A. O. Smith Trading Up 0.1%

Shares of NYSE AOS opened at $57.34 on Tuesday. A. O. Smith Corporation has a twelve month low of $54.16 and a twelve month high of $81.86. The company has a current ratio of 1.56, a quick ratio of 1.00 and a debt-to-equity ratio of 0.31. The stock has a fifty day simple moving average of $62.86 and a 200-day simple moving average of $67.89. The stock has a market capitalization of $7.90 billion, a PE ratio of 15.25, a PEG ratio of 1.26 and a beta of 1.23.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $0.85 earnings per share for the quarter, missing analysts' consensus estimates of $0.94 by ($0.09). A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The firm had revenue of $945.60 million during the quarter, compared to analyst estimates of $974.06 million. During the same period in the previous year, the firm posted $0.95 earnings per share. The company's quarterly revenue was down 1.9% compared to the same quarter last year. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. On average, equities analysts forecast that A. O. Smith Corporation will post 3.78 earnings per share for the current year.

A. O. Smith Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Thursday, April 30th were paid a $0.36 dividend. The ex-dividend date of this dividend was Thursday, April 30th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.5%. A. O. Smith's payout ratio is presently 38.30%.

A. O. Smith Company 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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