Pool Corporation (NASDAQ:POOL) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Pool Corporation has an average analyst recommendation of “Hold” from 12 firms, with a consensus price target of $264.50. The rating mix includes two sells, six holds, and four buys.
• Recent commentary has been mixed but leans cautious: several analysts lowered ratings or trimmed targets, while others moved the stock up to hold. Industry chatter also points to weak pool-channel demand and ongoing inventory destocking.
• The company recently topped earnings per share estimates but missed on revenue, while also boosting its quarterly dividend to $1.30 and authorizing a $600 million share buyback. Insiders have also been buying shares, and institutional ownership remains very high.

Shares of Pool Corporation (NASDAQ:POOL - Get Free Report) have been assigned an average recommendation of "Hold" from the twelve research firms that are currently covering the firm, MarketBeat.com reports. Two investment 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 12 month price objective among brokerages that have covered the stock in the last year is $264.50.

Several analysts recently commented on the company. Zacks Research raised Pool from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Wall Street Zen raised Pool from a "sell" rating to a "hold" rating in a research note on Monday, April 27th. Bank of America lowered their price target on Pool from $229.00 to $226.00 and set an "underperform" rating for the company in a report on Monday, April 20th. Weiss Ratings lowered Pool from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, May 14th. Finally, Stifel Nicolaus lifted their price objective on Pool from $210.00 to $235.00 and gave the company a "hold" rating in a report on Monday, July 6th.

Insider Activity at Pool

In related news, Director De La Mesa Manuel J. Perez acquired 10,000 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average cost of $175.95 per share, with a total value of $1,759,500.00. Following the transaction, the director owned 40,108 shares of the company's stock, valued at $7,057,002.60. The trade was a 33.21% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director James D. Hope bought 464 shares of Pool stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average cost of $194.41 per share, with a total value of $90,206.24. Following the completion of the purchase, the director owned 3,678 shares in the company, valued at approximately $715,039.98. This trade represents a 14.44% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 21,989 shares of company stock worth $4,042,747 over the last ninety days. 3.00% of the stock is owned by corporate insiders.

Institutional Trading of Pool

Institutional investors have recently modified their holdings of the company. Schwartz Investment Counsel Inc. acquired a new position in shares of Pool during the 4th quarter worth about $4,575,000. Deprince Race & Zollo Inc. grew its holdings in shares of Pool by 197.5% in the 1st quarter. Deprince Race & Zollo Inc. now owns 170,676 shares of the specialty retailer's stock valued at $34,533,000 after acquiring an additional 113,306 shares in the last quarter. Silver Oak Securities Incorporated acquired a new stake in shares of Pool in the fourth quarter valued at about $2,399,000. CenterBook Partners LP acquired a new stake in shares of Pool in the fourth quarter valued at about $3,381,000. Finally, King Luther Capital Management Corp raised its holdings in Pool by 236.4% during the fourth quarter. King Luther Capital Management Corp now owns 11,146 shares of the specialty retailer's stock worth $2,550,000 after acquiring an additional 7,833 shares in the last quarter. 98.99% of the stock is currently owned by institutional investors.

Key Pool News

Here are the key news stories impacting Pool this week:

• Neutral Sentiment: Analysts are flagging that pool-channel demand remains weak, with Pentair’s lowered guidance cited as evidence of ongoing inventory destocking and softer conditions across the pool industry. Article Title
• Neutral Sentiment: A Zacks preview said Pool Corp. is expected to grow earnings, but also warned the setup does not suggest a likely earnings beat, which may be tempering investor enthusiasm ahead of its next report. Article Title
• Negative Sentiment: Broader coverage around the pool industry suggests channel pressure may persist, which is a negative read-through for Pool Corporation’s sales and inventory trends. Article Title

Pool Stock Down 3.2%

Shares of NASDAQ:POOL opened at $201.17 on Friday. The company has a 50 day moving average price of $194.75 and a two-hundred day moving average price of $217.57. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.55 and a current ratio of 1.87. The company has a market capitalization of $7.33 billion, a PE ratio of 18.51, a PEG ratio of 2.55 and a beta of 1.05. Pool has a 52 week low of $172.68 and a 52 week high of $345.00.

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

Pool Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 14th were paid a $1.30 dividend. The ex-dividend date of this dividend was Thursday, May 14th. This is an increase from Pool's previous quarterly dividend of $1.25. This represents a $5.20 dividend on an annualized basis and a yield of 2.6%. Pool's payout ratio is presently 47.84%.

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

Pool Company Profile

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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