Royal Bank of Canada Has $50.78 Million Stock Position in A. O. Smith Corporation $AOS

Key Points

• Royal Bank of Canada reduced its A. O. Smith stake by 13.3% in the first quarter, selling 117,745 shares and retaining 770,141 shares valued at approximately $50.8 million. Institutional investors collectively own 76.1% of the company.
• A. O. Smith exceeded second-quarter expectations with adjusted EPS of $1.03 versus the $0.96 consensus and revenue of about $1 billion. Operating cash flow and free cash flow also rose sharply, prompting the company to increase its 2026 share-repurchase target to $300 million.
• The outlook remains mixed. Management maintained 2026 EPS guidance of $3.70–$3.85, but international sales—particularly in China—declined, while input costs pressured profits; analysts’ consensus rating is “Reduce” with a $67.75 price target.

Royal Bank of Canada lowered its position in A. O. Smith Corporation (NYSE:AOS - Free Report) by 13.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 770,141 shares of the industrial products company's stock after selling 117,745 shares during the period. Royal Bank of Canada owned 0.56% of A. O. Smith worth $50,784,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in AOS. Creative Financial Designs Inc. ADV raised its position in shares of A. O. Smith by 3,481.8% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company's stock worth $26,000 after purchasing an additional 383 shares during the period. Torren Management LLC acquired a new stake in A. O. Smith in the 4th quarter valued at $31,000. Eagle Bay Advisors LLC bought a new stake in A. O. Smith during the 4th quarter valued at $32,000. Larson Financial Group LLC increased its stake in A. O. Smith by 67.9% during the 3rd quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company's stock valued at $36,000 after purchasing an additional 197 shares in the last quarter. Finally, Los Angeles Capital Management LLC acquired a new position in A. O. Smith during the fourth quarter worth $35,000. Institutional investors and hedge funds own 76.10% of the company's stock.

Key Headlines Impacting A. O. Smith

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported adjusted EPS of $1.03, above the $0.96 consensus estimate, while sales of approximately $1.0 billion also topped forecasts. North America sales rose 5% to $820.5 million, supported by the Leonard Valve acquisition, 21% boiler sales growth and pricing actions. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: Cash generation and shareholder returns improved. Year-to-date operating cash flow increased 42% to $254 million, free cash flow climbed 67% to $233 million, and the company raised its 2026 share-repurchase target to $300 million. A. O. Smith also declared a quarterly dividend of $0.36 per share. A. O. Smith Q2 Sales Report
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. Management reiterated adjusted EPS guidance of $3.70 to $3.85 and sales growth of 2% to 3%; the midpoint is close to the analyst consensus. The company’s earnings beat and boiler momentum provide support, but the outlook does not represent a major upward revision. A. O. Smith Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: International weakness and costs remain concerns. Rest of World sales fell 19%, primarily because of continued weakness in China’s consumer-appliance market. Quarterly revenue declined slightly year over year, adjusted EPS was below the prior-year result, and higher input costs pressured profitability. A. O. Smith Q2 Earnings Beat Estimates
• Negative Sentiment: Analysts lowered their valuation targets. Citigroup cut its target to $64 from $65 and kept a neutral rating, while Stifel reduced its target to $70 from $76 but maintained a buy rating. The reductions may limit upside sentiment despite both targets remaining above the recent trading level. Analyst Price Target Changes

A. O. Smith Stock Performance

NYSE AOS opened at $60.31 on Monday. The company has a fifty day moving average price of $59.56 and a 200-day moving average price of $65.35. The firm has a market cap of $8.31 billion, a price-to-earnings ratio of 16.75, a PEG ratio of 1.34 and a beta of 1.16. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.59 and a quick ratio of 1.04. A. O. Smith Corporation has a 1 year low of $54.16 and a 1 year high of $81.86.

A. O. Smith (NYSE:AOS - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share for the quarter, topping the consensus estimate of $0.96 by $0.07. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The business had revenue of $1 billion for the quarter, compared to analysts' expectations of $994.89 million. During the same period in the previous year, the company earned $1.07 earnings per share. The firm's revenue for the quarter was down .7% compared to the same quarter last year. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. As a group, equities research analysts predict that A. O. Smith Corporation will post 3.75 EPS for the current fiscal year.

A. O. Smith Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Friday, July 31st will be given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, July 31st. A. O. Smith's dividend payout ratio (DPR) is presently 40.00%.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the stock. Zacks Research cut shares of A. O. Smith from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 6th. Stifel Nicolaus lowered their target price on shares of A. O. Smith from $76.00 to $70.00 and set a "buy" rating on the stock in a report on Friday. The Goldman Sachs Group dropped their price target on shares of A. O. Smith from $69.00 to $61.00 and set a "sell" rating on the stock in a research report on Monday, April 13th. Citigroup cut their price target on A. O. Smith from $65.00 to $64.00 and set a "neutral" rating for the company in a research note on Friday. Finally, Oppenheimer set a $75.00 price objective on A. O. Smith and gave the stock an "outperform" rating in a report on Wednesday, June 10th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $67.75.

About A. O. Smith

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.

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