Thornburg Investment Management Inc. Cuts Position in Pool Corporation (NASDAQ:POOL)

Key Points

• Thornburg Investment Management Inc. has reduced its holdings in Pool Corporation by 39.2%, now owning 22,251 shares worth approximately $7.08 million.
• A significant number of institutional investors have also adjusted their positions in Pool, with Mawer Investment Management acquiring a new stake worth $168.73 million during the first quarter.
• The company's board approved a $600 million share buyback program, reflecting confidence that the stock is undervalued, alongside an increased quarterly dividend of $1.25 per share.

Thornburg Investment Management Inc. lessened its stake in shares of Pool Corporation (NASDAQ:POOL - Free Report) by 39.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 22,251 shares of the specialty retailer's stock after selling 14,328 shares during the quarter. Thornburg Investment Management Inc. owned about 0.06% of Pool worth $7,084,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. LPL Financial LLC raised its position in Pool by 7.8% in the fourth quarter. LPL Financial LLC now owns 41,596 shares of the specialty retailer's stock worth $14,182,000 after acquiring an additional 3,010 shares in the last quarter. Korea Investment CORP raised its position in Pool by 116.0% in the fourth quarter. Korea Investment CORP now owns 17,500 shares of the specialty retailer's stock worth $5,966,000 after acquiring an additional 9,397 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in Pool by 5.2% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 60,334 shares of the specialty retailer's stock worth $20,349,000 after acquiring an additional 2,997 shares in the last quarter. UniSuper Management Pty Ltd raised its position in Pool by 19.6% in the fourth quarter. UniSuper Management Pty Ltd now owns 5,767 shares of the specialty retailer's stock worth $1,966,000 after acquiring an additional 947 shares in the last quarter. Finally, Norges Bank purchased a new position in Pool in the fourth quarter worth $36,203,000. Hedge funds and other institutional investors own 98.99% of the company's stock.

Pool Price Performance

Shares of POOL traded up $0.53 during trading hours on Friday, reaching $308.67. 493,254 shares of the company traded hands, compared to its average volume of 588,676. The company has a quick ratio of 0.87, a current ratio of 2.52 and a debt-to-equity ratio of 0.93. The stock has a market capitalization of $11.52 billion, a PE ratio of 28.48, a price-to-earnings-growth ratio of 4.25 and a beta of 1.07. Pool Corporation has a fifty-two week low of $282.22 and a fifty-two week high of $395.60. The stock has a fifty day simple moving average of $301.72 and a 200 day simple moving average of $317.30.

Pool (NASDAQ:POOL - Get Free Report) last posted its quarterly earnings data on Thursday, July 24th. The specialty retailer reported $5.17 EPS for the quarter, beating analysts' consensus estimates of $5.12 by $0.05. Pool had a return on equity of 30.99% and a net margin of 7.79%. The business had revenue of $1.78 billion for the quarter, compared to analyst estimates of $1.79 billion. During the same quarter last year, the company earned $4.99 earnings per share. The business's revenue for the quarter was up .9% compared to the same quarter last year. As a group, research analysts predict that Pool Corporation will post 11.32 EPS for the current fiscal year.

Pool announced that its Board of Directors has initiated a share repurchase program on Wednesday, April 30th that allows the company to repurchase $600.00 million in outstanding shares. This repurchase authorization allows the specialty retailer to purchase up to 5.4% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

Pool Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, August 28th. Shareholders of record on Thursday, August 14th will be paid a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, August 14th. Pool's dividend payout ratio (DPR) is presently 46.13%.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the company. Stifel Nicolaus set a $300.00 price objective on Pool in a research report on Friday, April 25th. Wall Street Zen upgraded Pool from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Wells Fargo & Company raised their price target on Pool from $300.00 to $320.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 8th. Stephens dropped their price target on Pool from $400.00 to $350.00 and set an "overweight" rating for the company in a research report on Monday, April 28th. Finally, Robert W. Baird raised their price target on Pool from $310.00 to $340.00 and gave the company a "neutral" rating in a research report on Friday, July 25th. Six research analysts have rated the stock with a hold rating and two have issued a buy rating to the company's stock. According to MarketBeat.com, Pool currently has a consensus rating of "Hold" and an average price target of $342.14.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling.