Insider Buying: Pool (NASDAQ:POOL) Director Buys 10,000 Shares of Stock

Key Points

• Pool director Manuel Perez De La Mesa bought 10,000 shares at $175.95 each, a $1.76 million transaction that increased his ownership by 33.21% to 40,108 shares.
• The stock was slightly lower in midday trading, down 0.1% to $175.24, and remains well below its 52-week high of $345.00.
• Pool recently raised its quarterly dividend to $1.30 per share and authorized a $600 million share buyback, signaling management’s confidence in the business.

Pool Corporation (NASDAQ:POOL - Get Free Report) Director De La Mesa Manuel Perez purchased 10,000 shares of the company's stock in a transaction on Wednesday, May 13th. The stock was bought at an average price of $175.95 per share, for a total transaction of $1,759,500.00. Following the completion of the purchase, the director directly owned 40,108 shares of the company's stock, valued at $7,057,002.60. The trade was a 33.21% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Pool Stock Down 0.1%

Pool stock traded down $0.13 during mid-day trading on Thursday, hitting $175.24. The company had a trading volume of 900,452 shares, compared to its average volume of 839,743. The stock has a market cap of $6.39 billion, a price-to-earnings ratio of 16.12, a PEG ratio of 2.31 and a beta of 1.16. Pool Corporation has a 1 year low of $173.62 and a 1 year high of $345.00. 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 business has a fifty day moving average of $208.95 and a 200 day moving average of $234.31.

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

Pool declared that its board has initiated a share buyback program on Wednesday, April 29th that authorizes the company to buyback $600.00 million in outstanding shares. This buyback authorization authorizes the specialty retailer to buy up to 7.8% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Pool Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th will be issued a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Thursday, May 14th. This is a positive change from Pool's previous quarterly dividend of $1.25. Pool's dividend payout ratio is presently 47.84%.

Institutional Investors Weigh In On Pool

Hedge funds and other institutional investors have recently bought and sold shares of the business. Root Financial Partners LLC acquired a new stake in Pool in the third quarter valued at $29,000. CYBER HORNET ETFs LLC acquired a new stake in Pool in the second quarter valued at $30,000. MUFG Securities EMEA plc acquired a new stake in Pool in the second quarter valued at $33,000. Clearstead Advisors LLC lifted its holdings in Pool by 100.0% in the fourth quarter. Clearstead Advisors LLC now owns 122 shares of the specialty retailer's stock valued at $28,000 after acquiring an additional 61 shares during the period. Finally, Private Trust Co. NA lifted its holdings in 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 acquiring an additional 55 shares during the period. Institutional investors and hedge funds own 98.99% of the company's stock.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Director David G. Whalen bought 525 shares of Pool Corporation at $190.44, a bullish insider signal that may reassure investors after the stock’s recent weakness. SEC Form 4 filing
• Neutral Sentiment: Pool recently raised its quarterly dividend to $1.30 per share from $1.25 and authorized a $600 million share repurchase program, both shareholder-friendly moves that may help cushion sentiment. Should Investors Lock Arms With Buffett and Dive Into POOL Stock?
• Neutral Sentiment: Analyst commentary has been mixed, with some firms trimming price targets and maintaining hold-style ratings, suggesting limited near-term upside expectations. Analyst target revision report
• Negative Sentiment: No new earnings beat, guidance raise, or major demand catalyst was reported in the latest articles, so the stock’s weakness appears tied more to ongoing concerns about valuation and growth momentum than to a fresh positive fundamental development.

Wall Street Analysts Forecast Growth

POOL has been the topic of a number of research reports. Robert W. Baird lowered their price target on Pool from $320.00 to $300.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Bank of America lowered their price objective on shares of Pool from $229.00 to $226.00 and set an "underperform" rating on the stock in a research report on Monday, April 20th. Stifel Nicolaus lowered their price objective on shares of Pool from $240.00 to $210.00 and set a "hold" rating on the stock in a research report on Monday. Wells Fargo & Company lowered their price objective on shares of Pool from $230.00 to $215.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 8th. Finally, Oppenheimer lowered their price objective on shares of Pool from $346.00 to $280.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 24th. Four research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $261.38.

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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