Schwartz Investment Counsel Inc. Sells 75,000 Shares of A. O. Smith Corporation $AOS

Key Points

• Schwartz Investment Counsel reduced its A. O. Smith position by 12.7% in the fourth quarter, selling 75,000 shares and leaving it with 515,333 shares worth about $34.5 million.
• Analysts are cautious on A. O. Smith overall, with a consensus “Hold” rating and an average price target of $70.44 after several firms trimmed targets or downgraded the stock.
• Recent results came in below expectations: A. O. Smith reported quarterly EPS of $0.85 versus $0.94 expected and revenue of $945.6 million versus $974.1 million expected, while the stock traded near its 52-week low at $58.08.

Schwartz Investment Counsel Inc. cut its stake in shares of A. O. Smith Corporation (NYSE:AOS - Free Report) by 12.7% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 515,333 shares of the industrial products company's stock after selling 75,000 shares during the quarter. Schwartz Investment Counsel Inc. owned approximately 0.37% of A. O. Smith worth $34,465,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. WealthPLAN Partners LLC boosted its stake in A. O. Smith by 1.3% in the 3rd quarter. WealthPLAN Partners LLC now owns 12,080 shares of the industrial products company's stock worth $887,000 after purchasing an additional 158 shares during the period. EverSource Wealth Advisors LLC boosted its stake in A. O. Smith by 17.3% in the 3rd quarter. EverSource Wealth Advisors LLC now owns 1,130 shares of the industrial products company's stock worth $83,000 after purchasing an additional 167 shares during the period. Allworth Financial LP boosted its stake in A. O. Smith by 24.8% in the 3rd quarter. Allworth Financial LP now owns 871 shares of the industrial products company's stock worth $64,000 after purchasing an additional 173 shares during the period. Fiduciary Trust Co boosted its stake in A. O. Smith by 5.0% in the 3rd quarter. Fiduciary Trust Co now owns 4,072 shares of the industrial products company's stock worth $299,000 after purchasing an additional 193 shares during the period. Finally, Larson Financial Group LLC boosted its stake in A. O. Smith by 67.9% in the 3rd quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company's stock worth $36,000 after purchasing an additional 197 shares during the period. 76.10% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, SVP Darrell W. Schuh sold 1,104 shares of the firm's stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total transaction of $82,126.56. Following the sale, the senior vice president owned 2,201 shares of the company's stock, valued at $163,732.39. This trade represents a 33.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.50% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Wall Street Zen downgraded A. O. Smith from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. JPMorgan Chase & Co. dropped their price target on A. O. Smith from $75.00 to $65.00 and set a "neutral" rating for the company in a research note on Friday, May 1st. Robert W. Baird set a $70.00 price target on A. O. Smith in a research note on Friday, May 1st. The Goldman Sachs Group lowered their target price on A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a research report on Monday, April 13th. Finally, Oppenheimer reiterated an "outperform" rating and set a $80.00 target price on shares of A. O. Smith in a research report on Friday, May 1st. Two analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, A. O. Smith presently has a consensus rating of "Hold" and an average price target of $70.44.

A. O. Smith Stock Performance

NYSE:AOS opened at $58.08 on Wednesday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.00 and a current ratio of 1.56. The stock's fifty day moving average is $65.52 and its 200 day moving average is $68.53. A. O. Smith Corporation has a fifty-two week low of $57.49 and a fifty-two week high of $81.86. The firm has a market capitalization of $8.01 billion, a PE ratio of 15.45, a PEG ratio of 1.29 and a beta of 1.23.

A. O. Smith (NYSE:AOS - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $0.85 earnings per share for the quarter, missing analysts' consensus estimates of $0.94 by ($0.09). The business had revenue of $945.60 million during the quarter, compared to analysts' expectations of $974.06 million. A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The business's revenue for the quarter was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.95 EPS. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. On average, sell-side analysts anticipate that A. O. Smith Corporation will post 3.78 earnings per share for the current year.

A. O. Smith Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Thursday, April 30th will be given a dividend of $0.36 per share. The ex-dividend date of this dividend is Thursday, April 30th. This represents a $1.44 dividend on an annualized basis and a yield of 2.5%. A. O. Smith's dividend payout ratio (DPR) is presently 38.30%.

A. O. Smith Profile

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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