Mawer Investment Management Ltd. Makes New Investment in Pool Corporation (NASDAQ:POOL)

Key Points

• Mawer Investment Management Ltd. has acquired a new stake in Pool Corporation, purchasing 530,029 shares valued at approximately $168.7 million, which represents about 1.41% of the company.
• Pool's board has announced a $600 million share buyback plan, indicating confidence in the company's value, alongside a quarterly dividend increase to $1.25 per share.
• Analysts have mixed ratings on Pool, with a consensus rating of "Hold" and a revised average price target of $338.71.

Mawer Investment Management Ltd. purchased a new position in shares of Pool Corporation (NASDAQ:POOL - Free Report) during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 530,029 shares of the specialty retailer's stock, valued at approximately $168,735,000. Mawer Investment Management Ltd. owned approximately 1.41% of Pool as of its most recent SEC filing.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the stock. Fiera Capital Corp lifted its position in Pool by 41.1% during the 1st quarter. Fiera Capital Corp now owns 31,043 shares of the specialty retailer's stock valued at $9,883,000 after purchasing an additional 9,043 shares during the period. Foundations Investment Advisors LLC grew its stake in shares of Pool by 7.1% during the 1st quarter. Foundations Investment Advisors LLC now owns 1,510 shares of the specialty retailer's stock worth $481,000 after acquiring an additional 100 shares in the last quarter. Mackenzie Financial Corp grew its stake in shares of Pool by 37.3% during the 1st quarter. Mackenzie Financial Corp now owns 2,158 shares of the specialty retailer's stock worth $687,000 after acquiring an additional 586 shares in the last quarter. Bryce Point Capital LLC grew its stake in shares of Pool by 79.1% during the 1st quarter. Bryce Point Capital LLC now owns 2,722 shares of the specialty retailer's stock worth $911,000 after acquiring an additional 1,202 shares in the last quarter. Finally, LPL Financial LLC boosted its holdings in shares of Pool by 44.4% in the 1st quarter. LPL Financial LLC now owns 60,073 shares of the specialty retailer's stock valued at $19,124,000 after buying an additional 18,477 shares during the last quarter. Institutional investors and hedge funds own 98.99% of the company's stock.

Pool Price Performance

Shares of POOL traded up $0.02 during trading hours on Friday, reaching $308.16. 305,841 shares of the company's stock traded hands, compared to its average volume of 525,508. The stock has a market cap of $11.59 billion, a PE ratio of 28.45, a price-to-earnings-growth ratio of 4.31 and a beta of 1.10. 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 firm's 50 day simple moving average is $301.50 and its 200-day simple moving average is $317.69. 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 announced its quarterly earnings results on Thursday, July 24th. The specialty retailer reported $5.17 EPS for the quarter, topping analysts' consensus estimates of $5.12 by $0.05. Pool had a return on equity of 30.99% and a net margin of 7.79%. The business had revenue of $1.78 billion for the quarter, compared to analysts' expectations of $1.79 billion. During the same period in the previous year, the firm earned $4.99 EPS. The business's quarterly revenue was up .9% on a year-over-year basis. Equities analysts expect that Pool Corporation will post 11.32 EPS for the current year.

Pool announced that its Board of Directors has initiated a share repurchase plan on Wednesday, April 30th that authorizes the company to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the specialty retailer to reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's leadership believes its stock is undervalued.

Pool Dividend Announcement

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

Analyst Ratings Changes

Several equities research analysts have issued reports on POOL shares. Robert W. Baird raised their price target on Pool from $310.00 to $340.00 and gave the company a "neutral" rating in a report on Friday, July 25th. Wall Street Zen raised Pool from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Stifel Nicolaus set a $300.00 price target on Pool in a research note on Friday, April 25th. Wells Fargo & Company boosted their target price on Pool from $300.00 to $320.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 8th. Finally, Stephens reduced their price target on Pool from $400.00 to $350.00 and set an "overweight" rating on the stock in a report on Monday, April 28th. Six investment analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat.com, Pool presently has a consensus rating of "Hold" and a consensus target price of $342.14.

Pool Company 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.