Rule One Partners LLC Invests $1.72 Million in Pool Corporation $POOL

Key Points

• Rule One Partners LLC disclosed a new fourth-quarter stake in Pool Corporation, buying 7,501 shares worth about $1.72 million. The holding now makes up about 0.3% of its portfolio and is its 8th-largest position.
• Pool also saw insider buying, including a large purchase by Director Manuel J. Perez, who bought 10,000 shares for about $1.76 million. Another director, James D. Hope, also added to his stake, and insiders bought 26,989 shares over the last 90 days.
• The company reported better-than-expected earnings of $1.43 per share, announced a $600 million share buyback, and raised its quarterly dividend to $1.30 per share. Analysts currently rate the stock a consensus Hold, with a target price of $261.38.

Rule One Partners LLC acquired a new stake in Pool Corporation (NASDAQ:POOL - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 7,501 shares of the specialty retailer's stock, valued at approximately $1,716,000. Pool comprises approximately 0.3% of Rule One Partners LLC's investment portfolio, making the stock its 8th biggest holding.

Several other hedge funds have also recently added to or reduced their stakes in the company. Commonwealth Retirement Investments LLC acquired a new position in Pool in the 4th quarter valued at $61,000. Fox Run Management L.L.C. acquired a new stake in shares of Pool in the fourth quarter valued at about $647,000. CenterBook Partners LP acquired a new stake in shares of Pool in the fourth quarter valued at about $3,381,000. Twin Tree Management LP acquired a new stake in shares of Pool in the fourth quarter valued at about $536,000. Finally, Los Angeles Capital Management LLC acquired a new stake in shares of Pool in the fourth quarter valued at about $38,000. 98.99% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Pool news, Director De La Mesa Manuel J. Perez purchased 10,000 shares of the firm's stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $175.95 per share, with a total value of $1,759,500.00. Following the purchase, the director directly owned 40,108 shares in the company, valued at approximately $7,057,002.60. This trade represents a 33.21% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director James D. Hope purchased 464 shares of the firm's stock in a transaction dated Thursday, May 7th. The stock was acquired at an average cost of $194.41 per share, for a total transaction of $90,206.24. Following the purchase, the director owned 3,678 shares in the company, valued at approximately $715,039.98. The trade was a 14.44% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders acquired 26,989 shares of company stock worth $5,067,747. Company insiders own 3.00% of the company's stock.

Analyst Upgrades and Downgrades

POOL has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Pool from a "sell" rating to a "hold" rating in a research report on Monday, April 27th. Deutsche Bank Aktiengesellschaft set a $246.00 target price on shares of Pool in a research report on Friday, February 20th. Bank of America reduced their target price 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. Stifel Nicolaus reduced their target price 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. Finally, Robert W. Baird lowered their price objective on Pool from $320.00 to $300.00 and set an "outperform" rating on the stock in a research note on Friday, February 20th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Pool presently has a consensus rating of "Hold" and a consensus target price of $261.38.

Pool Stock Performance

NASDAQ POOL opened at $180.95 on Tuesday. The stock's fifty day moving average is $199.12 and its two-hundred day moving average is $224.28. The firm has a market capitalization of $6.59 billion, a P/E ratio of 16.65, a price-to-earnings-growth ratio of 2.35 and a beta of 1.10. 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 Corporation has a fifty-two week low of $172.68 and a fifty-two week high of $345.00.

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

Pool declared that its Board of Directors has approved a stock buyback plan on Wednesday, April 29th that allows the company to repurchase $600.00 million in outstanding shares. This repurchase authorization allows the specialty retailer to buy up to 7.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's leadership believes its stock is undervalued.

Pool Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th were paid a $1.30 dividend. This is a boost from Pool's previous quarterly dividend of $1.25. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $5.20 annualized dividend and a dividend yield of 2.9%. Pool's dividend payout ratio is currently 47.84%.

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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