Schwartz Investment Counsel Inc. Acquires Shares of 20,000 Pool Corporation $POOL

Key Points

• Schwartz Investment Counsel Inc. disclosed a new fourth-quarter stake in Pool Corporation, buying 20,000 shares worth about $4.6 million.
• Institutional ownership remains extremely high, with the article noting that 98.99% of Pool shares are held by institutional investors. Several other funds also modestly increased their positions.
• Analyst sentiment has turned more cautious: recent firms have cut price targets and the stock now carries a consensus rating of “Hold” with an average price target of $261.38.

Schwartz Investment Counsel Inc. acquired a new stake in Pool Corporation (NASDAQ:POOL - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm acquired 20,000 shares of the specialty retailer's stock, valued at approximately $4,575,000. Schwartz Investment Counsel Inc. owned approximately 0.05% of Pool at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in POOL. CNB Bank grew its holdings in Pool by 4.1% during the third quarter. CNB Bank now owns 918 shares of the specialty retailer's stock worth $285,000 after buying an additional 36 shares in the last quarter. Keybank National Association OH lifted its stake in Pool by 4.2% during the 3rd quarter. Keybank National Association OH now owns 999 shares of the specialty retailer's stock valued at $310,000 after acquiring an additional 40 shares in the last quarter. Mufg Securities Americas Inc. boosted its holdings in Pool by 6.4% during the 3rd quarter. Mufg Securities Americas Inc. now owns 886 shares of the specialty retailer's stock worth $275,000 after acquiring an additional 53 shares during the last quarter. Snowden Capital Advisors LLC grew its stake in shares of Pool by 4.8% in the 2nd quarter. Snowden Capital Advisors LLC now owns 1,163 shares of the specialty retailer's stock worth $339,000 after acquiring an additional 53 shares in the last quarter. Finally, Private Trust Co. NA raised its holdings in shares of Pool by 78.6% in the fourth quarter. Private Trust Co. NA now owns 125 shares of the specialty retailer's stock valued at $29,000 after purchasing an additional 55 shares during the last quarter. 98.99% of the stock is owned by institutional investors.

Analysts Set New Price Targets

POOL has been the subject of a number of recent analyst reports. Oppenheimer reduced their price objective on shares of Pool from $346.00 to $280.00 and set an "outperform" rating for the company in a research report on Tuesday, February 24th. Zacks Research upgraded Pool from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Stifel Nicolaus decreased their price target on Pool from $240.00 to $210.00 and set a "hold" rating for the company in a research report on Monday. Weiss Ratings upgraded Pool from a "sell (d)" rating to a "hold (c-)" rating in a report on Wednesday, April 29th. Finally, The Goldman Sachs Group cut their price objective on Pool from $360.00 to $310.00 and set a "buy" rating on the stock in a research report on Tuesday, January 13th. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $261.38.

Insider Activity at Pool

In related news, Director James D. Hope acquired 464 shares of the business's stock in a transaction that occurred on Thursday, May 7th. The stock was bought 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 $715,039.98. The trade was a 14.44% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Melanie M. Hart sold 2,750 shares of the company's stock in a transaction that occurred on Tuesday, February 24th. The stock was sold at an average price of $220.00, for a total value of $605,000.00. Following the completion of the transaction, the chief financial officer owned 18,039 shares of the company's stock, valued at $3,968,580. The trade was a 13.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders bought a total of 22,549 shares of company stock valued at $4,524,052 in the last quarter. 3.00% of the stock is currently owned by company insiders.

Key Stories Impacting Pool

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Director David G. Whalen disclosed a purchase of 525 shares at $190.44 each, a sign of insider confidence that can support investor sentiment. SEC Form 4 filing
• Neutral Sentiment: Pool began the week with another round of insider-buying coverage, reinforcing that management and directors appear willing to add shares near recent lows. Insider Buying: Pool NASDAQ: POOL Director Purchases $193,060.00 in Stock
• Neutral Sentiment: Stifel Nicolaus cut its price target on Pool from $240 to $210 and kept a hold rating, which suggests analysts see limited near-term upside even after the stock’s decline. Benzinga/The Fly report
• Neutral Sentiment: Other articles in the news feed are about unrelated “pool” topics or non-POOL companies, and should not materially affect Pool Corporation’s shares.
• Negative Sentiment: No fresh earnings, guidance, or major contract news was reported in these articles, so the main catalyst appears to be ongoing concern about valuation and demand expectations rather than a new fundamental boost.

Pool Stock Performance

NASDAQ POOL opened at $182.33 on Wednesday. The firm has a market cap of $6.64 billion, a P/E ratio of 16.77, a price-to-earnings-growth ratio of 2.34 and a beta of 1.16. The company has a quick ratio of 0.55, a current ratio of 1.87 and a debt-to-equity ratio of 1.09. The company's 50 day moving average is $209.88 and its 200-day moving average is $235.19. Pool Corporation has a 12-month low of $181.10 and a 12-month high of $345.00.

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

Pool Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be given a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a yield of 2.9%. The ex-dividend date is Thursday, May 14th. This is a positive change from Pool's previous quarterly dividend of $1.25. Pool's dividend payout ratio is 46.00%.

Pool announced that its board has authorized a stock buyback plan on Wednesday, April 29th that authorizes the company to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the specialty retailer to reacquire up to 7.8% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

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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