Pool Corporation (NASDAQ:POOL) Given Average Rating of "Hold" by Analysts

Key Points

• Pool Corporation has a consensus analyst rating of “Hold” from 12 brokerages, with an average 12-month price target of about $261.38. The mix includes two sell ratings, six holds, and four buys.
• Recent analyst moves have been mixed but mostly cautious, including target-price cuts from Wells Fargo, Bank of America, and Stifel Nicolaus, while Wall Street Zen upgraded the stock from sell to hold.
• Insider buying has been notable, with directors James D. Hope and Manuel J. Perez purchasing shares; insiders have bought 26,989 shares worth roughly $5.07 million over the last 90 days. The company also recently launched a $600 million share repurchase program and raised its quarterly dividend to $1.30 per share.

Shares of Pool Corporation (NASDAQ:POOL - Get Free Report) have earned a consensus rating of "Hold" from the twelve brokerages that are covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $261.3750.

A number of research analysts have recently commented on POOL shares. Deutsche Bank Aktiengesellschaft set a $246.00 target price on Pool in a research note on Friday, February 20th. Wells Fargo & Company cut their target price on Pool from $230.00 to $215.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 8th. Wall Street Zen raised Pool from a "sell" rating to a "hold" rating in a research note on Monday, April 27th. Bank of America cut their target price on Pool from $229.00 to $226.00 and set an "underperform" rating on the stock in a research note on Monday, April 20th. Finally, Stifel Nicolaus cut their target price on Pool from $240.00 to $210.00 and set a "hold" rating on the stock in a research note on Monday, May 11th.

Insider Transactions at Pool

In other news, Director James D. Hope acquired 464 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The shares were bought at an average price of $194.41 per share, with a total value of $90,206.24. Following the completion of the purchase, the director directly owned 3,678 shares in the company, valued at $715,039.98. This trade represents a 14.44% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director De La Mesa Manuel J. Perez acquired 10,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average cost of $175.95 per share, for a total transaction of $1,759,500.00. Following the purchase, the director owned 40,108 shares of the company's stock, valued at $7,057,002.60. This represents a 33.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 26,989 shares of company stock worth $5,067,747 in the last ninety days. 3.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Keybank National Association OH lifted its holdings in Pool by 4.2% in the third quarter. Keybank National Association OH now owns 999 shares of the specialty retailer's stock valued at $310,000 after buying an additional 40 shares during the period. Annis Gardner Whiting Capital Advisors LLC raised its holdings in shares of Pool by 20.0% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 270 shares of the specialty retailer's stock valued at $62,000 after purchasing an additional 45 shares during the period. Wealthspire Advisors LLC raised its holdings in shares of Pool by 4.8% during the fourth quarter. Wealthspire Advisors LLC now owns 1,051 shares of the specialty retailer's stock valued at $240,000 after purchasing an additional 48 shares during the period. Snowden Capital Advisors LLC raised its holdings in shares of Pool by 4.8% during the second quarter. Snowden Capital Advisors LLC now owns 1,163 shares of the specialty retailer's stock valued at $339,000 after purchasing an additional 53 shares during the period. Finally, Mufg Securities Americas Inc. raised its holdings in shares of Pool by 6.4% during the third quarter. Mufg Securities Americas Inc. now owns 886 shares of the specialty retailer's stock valued at $275,000 after purchasing an additional 53 shares during the period. Institutional investors own 98.99% of the company's stock.

Pool Trading Down 1.8%

Shares of NASDAQ POOL opened at $181.40 on Friday. The business's 50 day moving average is $201.61 and its two-hundred day moving average is $227.10. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.87 and a quick ratio of 0.55. Pool has a 1-year low of $172.68 and a 1-year high of $345.00. The stock has a market capitalization of $6.61 billion, a P/E ratio of 16.69, a PEG ratio of 2.34 and a beta of 1.16.

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

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

Pool Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 14th were paid a $1.30 dividend. This represents a $5.20 annualized dividend and a yield of 2.9%. This is an increase from Pool's previous quarterly dividend of $1.25. The ex-dividend date of this dividend was Thursday, May 14th. Pool's payout ratio is currently 47.84%.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Jim Cramer said Pool Corp. could be a stock that goes higher, which may help sentiment by reinforcing the view that the shares could recover from recent weakness. Jim Cramer: This Real Estate Stock Is 'Going To Go Higher'
• Positive Sentiment: Argosy Investors disclosed that it added Pool to its portfolio, which can be viewed as a vote of confidence from an institutional investor. Argosy Investors adds Capital One and Pool as it exits multiple holdings
• Neutral Sentiment: There was a note about short interest in Pool rising, but the reported figure was 0 shares, so it does not appear to be a meaningful new signal for the stock.

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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