London Co. of Virginia Cuts Position in Pool Corporation $POOL

Key Points

• London Co. of Virginia trimmed its Pool Corp. stake by 8.0% in the fourth quarter, selling 37,815 shares and ending with 433,463 shares valued at about $99.2 million.
• Insider buying was notable, with directors James D. Hope and David G. Whalen purchasing shares in May; insiders bought 21,989 shares worth about $4.0 million over the last three months.
• Pool announced a $600 million share repurchase program and raised its quarterly dividend to $1.30 per share, equal to an annualized yield of 2.6%.

London Co. of Virginia cut its stake in Pool Corporation (NASDAQ:POOL - Free Report) by 8.0% in the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 433,463 shares of the specialty retailer's stock after selling 37,815 shares during the period. London Co. of Virginia owned about 1.16% of Pool worth $99,156,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Schwartz Investment Counsel Inc. purchased a new stake in Pool during the fourth quarter valued at about $4,575,000. Silver Oak Securities Incorporated purchased a new stake in Pool during the fourth quarter valued at about $2,399,000. CenterBook Partners LP purchased a new stake in Pool during the fourth quarter valued at about $3,381,000. King Luther Capital Management Corp boosted its position in Pool by 236.4% during 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 buying an additional 7,833 shares during the period. Finally, Caledonia Investments PLC boosted its position in Pool by 9.3% during the fourth quarter. Caledonia Investments PLC now owns 175,887 shares of the specialty retailer's stock valued at $40,236,000 after buying an additional 15,000 shares during the period. 98.99% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director James D. Hope purchased 464 shares of Pool stock in a transaction that occurred on Thursday, May 7th. The shares were bought at an average price of $194.41 per share, for a total transaction of $90,206.24. Following the completion of the transaction, the director directly owned 3,678 shares of the company's stock, valued at $715,039.98. This represents a 14.44% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David G. Whalen purchased 525 shares of Pool stock in a transaction that occurred on Friday, May 8th. The shares were bought at an average price of $190.44 per share, for a total transaction of $99,981.00. Following the transaction, the director directly owned 8,936 shares of the company's stock, valued at $1,701,771.84. This trade represents a 6.24% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders bought 21,989 shares of company stock valued at $4,042,747. 3.00% of the stock is currently owned by insiders.

Pool Stock Performance

Shares of NASDAQ:POOL opened at $198.08 on Wednesday. The company has a market cap of $7.22 billion, a price-to-earnings ratio of 18.22, a price-to-earnings-growth ratio of 2.42 and a beta of 1.10. The company has a 50-day moving average price of $198.15 and a 200-day moving average price of $222.38. 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 12 month low of $172.68 and a 12 month high of $345.00.

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

Pool declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, April 29th that authorizes the company to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the specialty retailer to reacquire up to 7.8% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Pool Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th were paid a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 2.6%. This is a positive change from Pool's previous quarterly dividend of $1.25. The ex-dividend date of this dividend was Thursday, May 14th. Pool's payout ratio is currently 47.84%.

Pool News Summary

Here are the key news stories impacting Pool this week:

• Neutral Sentiment: Most of the recent headlines are unrelated to Pool Corporation and focus on the Lincoln Memorial reflecting pool algae issue, so they do not appear to materially affect POOL’s business outlook or earnings trajectory.
• Neutral Sentiment: Several articles reference other companies’ “share award pools” or incentive pools, but these are unrelated corporate actions from non-U.S. firms and are not meaningful catalysts for Pool Corporation.
• Neutral Sentiment: One private-equity announcement about forming a platform for pool service brands could be mildly supportive for the broader pool-services industry, but it does not directly involve Pool Corporation or change its near-term operating outlook.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on POOL. Oppenheimer cut their price target on shares of Pool from $346.00 to $280.00 and set an "outperform" rating for the company in a research report on Tuesday, February 24th. Bank of America cut their price target on shares of Pool from $229.00 to $226.00 and set an "underperform" rating for the company in a research report on Monday, April 20th. Deutsche Bank Aktiengesellschaft set a $246.00 price target on shares of Pool in a research report on Friday, February 20th. Wells Fargo & Company cut their price target on shares of Pool from $230.00 to $215.00 and set an "equal weight" rating for the company in a research report on Wednesday, April 8th. Finally, Stifel Nicolaus cut their price target on shares of Pool from $240.00 to $210.00 and set a "hold" rating for the company in a research report on Monday, May 11th. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus 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.

Want to see what other hedge funds are holding POOL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pool Corporation (NASDAQ:POOL - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.