Norges Bank Buys New Position in Pool Corporation $POOL

Key Points

• Norges Bank initiated a new position in Pool Corporation, buying 426,717 shares valued at about $97.6 million and representing roughly 1.15% of the company.
• Institutional ownership remains very high, with several other hedge funds also increasing their stakes in POOL during recent quarters, while 98.99% of the stock is held by hedge funds and other institutional investors.
• Analyst sentiment is cautious: the stock carries an average Hold rating and a consensus price target of $261.38, even as Pool recently beat EPS estimates, raised its dividend, and authorized a $600 million share buyback.

Norges Bank bought a new stake in shares of Pool Corporation (NASDAQ:POOL - Free Report) during the 4th quarter, according to its most recent filing with the SEC. The firm bought 426,717 shares of the specialty retailer's stock, valued at approximately $97,612,000. Norges Bank owned 1.15% of Pool as of its most recent filing with the SEC.

Several other hedge funds have also modified their holdings of POOL. Wellington Management Group LLP raised its holdings in shares of Pool by 16.2% during the 3rd quarter. Wellington Management Group LLP now owns 2,563,373 shares of the specialty retailer's stock valued at $794,825,000 after buying an additional 357,643 shares during the period. Worldquant Millennium Advisors LLC raised its holdings in shares of Pool by 1,301.7% during the 2nd quarter. Worldquant Millennium Advisors LLC now owns 194,880 shares of the specialty retailer's stock valued at $56,804,000 after buying an additional 180,977 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Pool by 10,170.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 84,218 shares of the specialty retailer's stock valued at $19,265,000 after buying an additional 83,398 shares during the period. UBS Group AG raised its holdings in shares of Pool by 30.7% during the 4th quarter. UBS Group AG now owns 297,361 shares of the specialty retailer's stock valued at $68,021,000 after buying an additional 69,797 shares during the period. Finally, Alliancebernstein L.P. raised its holdings in shares of Pool by 157.8% during the 3rd quarter. Alliancebernstein L.P. now owns 113,284 shares of the specialty retailer's stock valued at $35,126,000 after buying an additional 69,333 shares during the period. 98.99% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Wall Street Zen upgraded Pool from a "sell" rating to a "hold" rating in a report on Monday, April 27th. Weiss Ratings downgraded Pool from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, May 14th. Bank of America dropped their price objective on Pool from $229.00 to $226.00 and set an "underperform" rating on the stock in a report on Monday, April 20th. Zacks Research upgraded Pool from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Finally, Stifel Nicolaus dropped their price objective on Pool from $240.00 to $210.00 and set a "hold" rating on the stock in a report on Monday, May 11th. Four analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Pool has an average rating of "Hold" and a consensus price target of $261.38.

Key Headlines Impacting Pool

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Recent coverage highlighted Pool Corporation as a leader in pool distributors, which may reinforce the company’s long-term competitive positioning and brand strength. What Makes Pool Corporation (POOL) a Leader in Pool Distributors?
• Neutral Sentiment: An additional write-up repeated the same “leader in pool distributors” theme, but it appears to be a commentary piece rather than a new market-moving development. What Makes Pool Corporation (POOL) a Leader in Pool Distributors?
• Neutral Sentiment: The remaining headlines mentioning “pool” were unrelated to Pool Corporation, focusing on the Lincoln Memorial reflecting pool and political commentary, so they should not materially affect POOL shares.

Pool Stock Performance

Pool stock opened at $185.52 on Friday. The company has a market cap of $6.76 billion, a PE ratio of 17.07, a P/E/G ratio of 2.32 and a beta of 1.10. The company has a fifty day moving average price of $199.52 and a two-hundred day moving average price of $224.79. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.87 and a quick ratio of 0.55. 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, topping analysts' consensus estimates 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 return on equity of 32.37% and a net margin of 7.57%.The firm's revenue was up 6.2% on a year-over-year basis. 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 expect that Pool Corporation will post 11.08 earnings per share for the current year.

Pool Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 14th were paid a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date was Thursday, May 14th. This is an increase from Pool's previous quarterly dividend of $1.25. Pool's dividend payout ratio (DPR) is currently 47.84%.

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

Insider Buying and Selling

In related news, Director David G. Whalen acquired 525 shares of the stock in a transaction that occurred on Friday, May 8th. The stock was purchased at an average cost of $190.44 per share, for a total transaction of $99,981.00. Following the purchase, the director directly owned 8,936 shares in the company, valued at $1,701,771.84. This represents a 6.24% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, Director John E. Stokely acquired 1,000 shares of the stock in a transaction that occurred on Thursday, May 7th. The shares were bought at an average price of $193.06 per share, with a total value of $193,060.00. Following the completion of the purchase, the director owned 16,230 shares in the company, valued at $3,133,363.80. The trade was a 6.57% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 26,989 shares of company stock valued at $5,067,747 in the last 90 days. Corporate insiders own 3.00% of the company's stock.

About Pool

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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