Teacher Retirement System of Texas Acquires 78,723 Shares of A. O. Smith Corporation $AOS

Key Points

• Teacher Retirement System of Texas boosted its stake in A. O. Smith by 225.3%, purchasing 78,723 shares to hold 113,665 shares (about $7.60M and 0.08% of the company).
• A. O. Smith reported quarterly EPS of $0.90, beating estimates by $0.06 while revenue missed slightly at $912.5M, and the company declared a quarterly dividend of $0.36 (annual $1.44, yield 2.2%, DPR ~37.3%).
• Analysts' consensus is a Hold with an average target of $74.89 amid mixed ratings; the stock trades around $64.42 with a market cap of $8.91B and a 52-week range of $62.14–$81.86.

Teacher Retirement System of Texas increased its holdings in shares of A. O. Smith Corporation (NYSE:AOS - Free Report) by 225.3% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 113,665 shares of the industrial products company's stock after purchasing an additional 78,723 shares during the period. Teacher Retirement System of Texas owned 0.08% of A. O. Smith worth $7,602,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in shares of A. O. Smith by 1.3% during the third quarter. Vanguard Group Inc. now owns 14,412,842 shares of the industrial products company's stock valued at $1,058,047,000 after purchasing an additional 182,876 shares in the last quarter. Impax Asset Management Group plc boosted its stake in shares of A. O. Smith by 3.4% during the third quarter. Impax Asset Management Group plc now owns 4,850,158 shares of the industrial products company's stock valued at $356,050,000 after purchasing an additional 157,856 shares in the last quarter. American Century Companies Inc. boosted its stake in shares of A. O. Smith by 54.2% during the third quarter. American Century Companies Inc. now owns 3,208,831 shares of the industrial products company's stock valued at $235,560,000 after purchasing an additional 1,128,543 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of A. O. Smith by 4.6% during the third quarter. First Trust Advisors LP now owns 2,508,947 shares of the industrial products company's stock valued at $184,182,000 after purchasing an additional 109,654 shares in the last quarter. Finally, Earnest Partners LLC boosted its stake in shares of A. O. Smith by 1.8% during the third quarter. Earnest Partners LLC now owns 2,082,982 shares of the industrial products company's stock valued at $152,912,000 after purchasing an additional 36,122 shares in the last quarter. 76.10% of the stock is currently owned by institutional investors.

A. O. Smith Trading Down 1.0%

NYSE AOS opened at $64.42 on Friday. The company has a fifty day simple moving average of $68.92 and a two-hundred day simple moving average of $69.12. The stock has a market cap of $8.91 billion, a P/E ratio of 16.69, a P/E/G ratio of 1.36 and a beta of 1.35. A. O. Smith Corporation has a 12-month low of $62.14 and a 12-month high of $81.86. The company has a current ratio of 1.50, a quick ratio of 0.94 and a debt-to-equity ratio of 0.06.

A. O. Smith (NYSE:AOS - Get Free Report) last posted its quarterly earnings results on Thursday, January 29th. The industrial products company reported $0.90 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.84 by $0.06. The business had revenue of $912.50 million during the quarter, compared to analysts' expectations of $928.97 million. A. O. Smith had a net margin of 14.26% and a return on equity of 29.51%. The business's quarterly revenue was up .0% on a year-over-year basis. During the same quarter last year, the company posted $0.85 earnings per share. On average, analysts forecast that A. O. Smith Corporation will post 3.98 earnings per share for the current year.

A. O. Smith Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Thursday, April 30th will be issued a $0.36 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.2%. A. O. Smith's dividend payout ratio (DPR) is currently 37.31%.

Insider Activity

In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of the firm's stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $74.39, for a total value of $82,126.56. Following the completion of the transaction, the senior vice president owned 2,201 shares of the company's stock, valued at approximately $163,732.39. This trade represents a 33.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.50% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on AOS shares. Wall Street Zen downgraded shares of A. O. Smith from a "buy" rating to a "hold" rating in a research note on Saturday, February 14th. Stifel Nicolaus set a $78.00 target price on shares of A. O. Smith and gave the company a "buy" rating in a research note on Tuesday, April 14th. The Goldman Sachs Group lowered their target price on shares of A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a research note on Monday, April 13th. Citigroup lowered their target price on shares of A. O. Smith from $78.00 to $74.00 and set a "neutral" rating for the company in a research note on Monday, April 13th. Finally, Robert W. Baird set a $77.00 target price on shares of A. O. Smith in a research note on Friday, January 30th. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $74.89.

A. O. Smith Company 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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