Hsbc Holdings PLC Boosts Stock Position in Pool Corporation $POOL

Key Points

• Hsbc Holdings PLC increased its stake in Pool Corporation by 1.0%, owning approximately 0.22% of the company valued at $26.37 million after purchasing an additional 824 shares in the first quarter.
• Pool Corporation recently reported $5.17 EPS for the last quarter, exceeding the expected $5.12, and announced a quarterly dividend of $1.25, which reflects a 1.5% dividend yield.
• The company has initiated a $600 million share buyback plan, indicating confidence from its leadership that the stock is undervalued.

Hsbc Holdings PLC increased its holdings in Pool Corporation (NASDAQ:POOL - Free Report) by 1.0% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 83,063 shares of the specialty retailer's stock after purchasing an additional 824 shares during the period. Hsbc Holdings PLC owned 0.22% of Pool worth $26,365,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Whipplewood Advisors LLC lifted its holdings in Pool by 471.4% in the 1st quarter. Whipplewood Advisors LLC now owns 80 shares of the specialty retailer's stock worth $25,000 after purchasing an additional 66 shares in the last quarter. City Holding Co. purchased a new position in Pool in the 1st quarter worth approximately $26,000. Sentry Investment Management LLC bought a new stake in Pool in the 1st quarter worth approximately $30,000. Versant Capital Management Inc increased its stake in Pool by 790.9% in the 1st quarter. Versant Capital Management Inc now owns 98 shares of the specialty retailer's stock worth $31,000 after acquiring an additional 87 shares during the last quarter. Finally, FWL Investment Management LLC bought a new stake in Pool in the 4th quarter worth approximately $39,000. 98.99% of the stock is owned by hedge funds and other institutional investors.

Pool Trading Down 1.0%

Shares of NASDAQ POOL traded down $3.24 during trading hours on Thursday, hitting $314.62. 75,593 shares of the company traded hands, compared to its average volume of 515,401. The stock has a market capitalization of $11.74 billion, a price-to-earnings ratio of 29.01, a price-to-earnings-growth ratio of 4.40 and a beta of 1.07. The company has a current ratio of 2.52, a quick ratio of 0.87 and a debt-to-equity ratio of 0.93. The company's 50 day moving average price is $308.03 and its 200 day moving average price is $313.34. Pool Corporation has a 12 month low of $282.22 and a 12 month high of $395.60.

Pool (NASDAQ:POOL - Get Free Report) last released its 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. The firm had revenue of $1.78 billion for the quarter, compared to the consensus estimate of $1.79 billion. Pool had a return on equity of 30.99% and a net margin of 7.79%.The company's revenue for the quarter was up .9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $4.99 EPS. Pool has set its FY 2025 guidance at 10.700-11.200 EPS. On average, equities research analysts anticipate that Pool Corporation will post 11.32 earnings per share for the current fiscal year.

Pool declared that its board has initiated a share buyback plan on Wednesday, April 30th that allows the company to buyback $600.00 million in shares. This buyback authorization allows the specialty retailer to buy up to 5.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's leadership believes its shares are undervalued.

Pool Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 28th. Stockholders of record on Thursday, August 14th will be given a dividend of $1.25 per share. The ex-dividend date of this dividend is Thursday, August 14th. This represents a $5.00 annualized dividend and a dividend yield of 1.6%. Pool's payout ratio is currently 46.13%.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Wells Fargo & Company lifted their price objective on Pool from $300.00 to $320.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th. Oppenheimer lifted their price objective on Pool from $322.00 to $346.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 29th. Wall Street Zen raised Pool from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Finally, Robert W. Baird lifted their price objective on Pool from $310.00 to $340.00 and gave the stock a "neutral" rating in a research note on Friday, July 25th. Two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $342.14.

Pool Profile

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.