UBS Group AG Buys 537,920 Shares of A. O. Smith Corporation $AOS

Key Points

• UBS Group AG increased its stake in A. O. Smith by 48.4%, buying 537,920 shares to own 1,649,985 shares (about 1.18% of the company) valued at $110.35 million at quarter-end.
• Q1 results missed expectations — EPS $0.85 vs. $0.94 consensus and revenue $945.6M vs. $974.1M — and management cut FY‑2026 guidance to $3.60–$3.90, triggering analyst price-target reductions and a consensus "Hold."
• The company declared a quarterly dividend of $0.36 (annualized $1.44, ~2.4% yield), and institutional investors own roughly 76.1% of AOS shares.

UBS Group AG lifted its stake in A. O. Smith Corporation (NYSE:AOS - Free Report) by 48.4% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 1,649,985 shares of the industrial products company's stock after purchasing an additional 537,920 shares during the period. UBS Group AG owned 1.18% of A. O. Smith worth $110,351,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in AOS. JPMorgan Chase & Co. lifted its holdings in A. O. Smith by 26.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 665,793 shares of the industrial products company's stock worth $48,876,000 after purchasing an additional 139,117 shares in the last quarter. First Trust Advisors LP lifted its holdings in A. O. Smith by 4.6% during the 3rd quarter. First Trust Advisors LP now owns 2,508,947 shares of the industrial products company's stock worth $184,182,000 after purchasing an additional 109,654 shares in the last quarter. Alps Advisors Inc. lifted its holdings in A. O. Smith by 19.9% during the 3rd quarter. Alps Advisors Inc. now owns 273,216 shares of the industrial products company's stock worth $20,057,000 after purchasing an additional 45,299 shares in the last quarter. Earnest Partners LLC lifted its holdings in A. O. Smith by 1.8% during the 3rd quarter. Earnest Partners LLC now owns 2,082,982 shares of the industrial products company's stock worth $152,912,000 after purchasing an additional 36,122 shares in the last quarter. Finally, Bayforest Capital Ltd purchased a new stake in A. O. Smith during the 3rd quarter worth about $750,000. Institutional investors and hedge funds own 76.10% of the company's stock.

A. O. Smith Stock Performance

Shares of NYSE AOS opened at $60.34 on Friday. The stock has a market cap of $8.34 billion, a price-to-earnings ratio of 15.63, a P/E/G ratio of 1.29 and a beta of 1.23. The company has a current ratio of 1.56, a quick ratio of 0.94 and a debt-to-equity ratio of 0.31. A. O. Smith Corporation has a 1-year low of $59.83 and a 1-year high of $81.86. The stock's 50-day moving average is $67.68 and its 200 day moving average is $68.96.

A. O. Smith (NYSE:AOS - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $945.60 million for the quarter, compared to analysts' expectations of $974.06 million. A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The business's quarterly revenue was down 1.9% on a year-over-year basis. During the same period in the prior year, the business posted $0.95 earnings per share. 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 4 EPS for the current fiscal year.

A. O. Smith Dividend Announcement

The company also recently declared 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 is Thursday, April 30th. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. A. O. Smith's payout ratio is currently 37.31%.

Insider Buying and Selling at A. O. Smith

In related news, SVP Darrell W. Schuh sold 1,104 shares of A. O. Smith stock in a transaction that occurred on 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 directly owned 2,201 shares in the company, valued at $163,732.39. The trade was a 33.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.50% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Citigroup dropped their price objective on A. O. Smith from $78.00 to $74.00 and set a "neutral" rating on the stock in a report on Monday, April 13th. JPMorgan Chase & Co. lowered their price target on A. O. Smith from $75.00 to $65.00 and set a "neutral" rating on the stock in a report on Friday. Robert W. Baird set a $70.00 price target on A. O. Smith in a report on Friday. Jefferies Financial Group set a $75.00 price target on A. O. Smith and gave the company a "hold" rating in a report on Friday, January 9th. Finally, The Goldman Sachs Group lowered their price target on A. O. Smith from $69.00 to $61.00 and set a "sell" rating on the stock in a report on Monday, April 13th. Two analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $72.33.

Trending Headlines about A. O. Smith

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Strong cash generation and free cash flow improved materially in Q1, supporting balance‑sheet strength and giving management flexibility for operations and acquisitions. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
• Positive Sentiment: North America sales rose (helped by the Leonard Valve acquisition and pricing), partially offsetting international weakness and showing the business can sustain margins in its largest market. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
• Neutral Sentiment: Management hosted an earnings call and published the slide deck and transcript; these provide more detail on segment dynamics and cost actions but do not change the headline miss. Q1 2026 Earnings Call Transcript
• Negative Sentiment: Q1 results missed expectations — EPS $0.85 vs. consensus ~$0.94 and revenue ~$946M vs. ~$974M — showing a year‑over‑year decline and prompting investor concern about near‑term demand. A.O. Smith Q1 Earnings and Revenues Lag Estimates
• Negative Sentiment: Management lowered FY‑2026 EPS guidance to $3.60–$3.90 (adjusted $3.70–$4.00), below the prior consensus (~$3.98), which reduces near‑term earnings visibility and drove downgrades. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
• Negative Sentiment: Persistent weakness in China’s consumer appliance market materially pressured Rest‑of‑World sales (down ~11%), a key reason for the guidance cut and the earnings miss. A. O. Smith Misses Earnings & Sales Estimates in Q1, Lowers 26' View
• Negative Sentiment: JPMorgan cut its price target (from $75 to $65) and set a neutral rating, signaling lower broker enthusiasm and limiting near‑term upside. JPMorgan Lowers Price Target

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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