Pool Corporation $POOL Position Increased by CI Investments Inc.

Key Points

• CI Investments Inc. increased its Pool Corporation stake by 40.8% in the first quarter, buying 41,489 additional shares and lifting its holding to 143,186 shares valued at about $28.97 million.
• Pool’s recent quarterly results beat earnings expectations, with EPS of $1.43 versus $1.34 estimated, while revenue rose 6.2% year over year to $1.14 billion.
• The company boosted its quarterly dividend to $1.30 per share and authorized a $600 million share buyback, even as analysts remain cautious with a consensus rating of “Hold” and a consensus price target of $262.

CI Investments Inc. boosted its position in shares of Pool Corporation (NASDAQ:POOL - Free Report) by 40.8% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 143,186 shares of the specialty retailer's stock after purchasing an additional 41,489 shares during the period. CI Investments Inc. owned 0.39% of Pool worth $28,971,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Schwartz Investment Counsel Inc. acquired a new position in Pool in the fourth quarter worth approximately $4,575,000. Deprince Race & Zollo Inc. raised its position in Pool by 197.5% during the first quarter. Deprince Race & Zollo Inc. now owns 170,676 shares of the specialty retailer's stock valued at $34,533,000 after acquiring an additional 113,306 shares in the last quarter. Silver Oak Securities Incorporated acquired a new stake in Pool in the fourth quarter valued at approximately $2,399,000. CenterBook Partners LP acquired a new stake in Pool in the fourth quarter valued at approximately $3,381,000. Finally, King Luther Capital Management Corp grew its position in Pool by 236.4% in the fourth quarter. King Luther Capital Management Corp now owns 11,146 shares of the specialty retailer's stock worth $2,550,000 after acquiring an additional 7,833 shares in the last quarter. Hedge funds and other institutional investors own 98.99% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. Wall Street Zen upgraded shares of Pool from a "sell" rating to a "hold" rating in a research note on Monday, April 27th. Wells Fargo & Company decreased their price objective on shares of Pool from $230.00 to $215.00 and set an "equal weight" rating for the company in a report on Wednesday, April 8th. Weiss Ratings downgraded Pool from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Stifel Nicolaus increased their price objective on Pool from $210.00 to $235.00 and gave the company a "hold" rating in a report on Monday, July 6th. Finally, Bank of America reduced their target price on Pool from $226.00 to $206.00 and set an "underperform" rating for the company in a report on Monday. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Pool has a consensus rating of "Hold" and a consensus target price of $262.00.

Pool Price Performance

NASDAQ POOL opened at $196.19 on Thursday. The stock has a 50-day simple moving average of $195.77 and a 200 day simple moving average of $216.82. Pool Corporation has a twelve month low of $172.68 and a twelve month high of $345.00. The stock has a market capitalization of $7.15 billion, a PE ratio of 18.05, a P/E/G ratio of 2.53 and a beta of 1.05. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.55 and a current ratio of 1.87.

Pool (NASDAQ:POOL - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The specialty retailer reported $1.43 EPS for the quarter, topping the consensus estimate of $1.34 by $0.09. Pool had a return on equity of 32.37% and a net margin of 7.57%.The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.82 billion. During the same period in the previous year, the business posted $1.32 EPS. The company's revenue for the quarter was up 6.2% on a year-over-year basis. Research analysts anticipate that Pool Corporation will post 11.05 EPS for the current year.

Pool Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 14th were given a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 2.7%. This is an increase 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 presently 47.84%.

Pool announced that its Board of Directors has authorized a stock buyback program on Wednesday, April 29th that permits the company to buyback $600.00 million in outstanding shares. This buyback authorization permits the specialty retailer to buy up to 7.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company's management believes its shares are undervalued.

Insider Activity at Pool

In related news, Director De La Mesa Manuel J. Perez bought 10,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average cost of $175.95 per share, for a total transaction of $1,759,500.00. Following the purchase, the director directly owned 40,108 shares in the company, valued at $7,057,002.60. This trade represents a 33.21% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director David G. Whalen purchased 525 shares of the firm's stock in a transaction on Friday, May 8th. The stock was bought at an average price of $190.44 per share, for a total transaction of $99,981.00. Following the completion of the transaction, the director directly owned 8,936 shares in the company, valued at approximately $1,701,771.84. The trade was a 6.24% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have bought 21,989 shares of company stock valued at $4,042,747 in the last 90 days. 3.00% of the stock is owned by company insiders.

Trending Headlines about Pool

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Longer-term industry interest remains supportive, with a report projecting Europe’s pool chemicals market to grow to $932.5 million by 2032, which reinforces demand for pool maintenance products and services. Europe Pool Chemicals Market to Reach USD 932.5 Mn by 2032
• Neutral Sentiment: Consumer-interest articles about pool decorating, hygiene, and heating highlight ongoing public engagement with pools, but they are not direct catalysts for Pool Corporation’s earnings or margins. The pool decorating ideas designers use to make backyards feel like vacation The Biggest Hygiene Mistakes People Make in the Pool Pool Heating Solutions for Comfortable Swimming in Every Season
• Neutral Sentiment: Minto Group’s new outdoor pool project in Alberta is a local real-estate amenity announcement, which may modestly reflect healthy construction activity but has no direct impact on POOL’s financial outlook. Minto Group Breaks Ground on Wildflower’s Hillside Hub, Featuring Airdrie’s First Outdoor Pool
• Negative Sentiment: Bank of America reportedly issued a pessimistic forecast for Pool Corporation’s stock, which could weigh on sentiment and reinforce concerns about near-term performance. Bank of America Issues Pessimistic Forecast for Pool NASDAQ: POOL Stock Price

Pool 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.

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.