Pool (NASDAQ:POOL) Reaches New 12-Month Low on Analyst Downgrade

Key Points

• Pool Corp. shares hit a new 52-week low after Stifel Nicolaus cut its price target to $210 from $240 and kept a Hold rating. The stock fell to as low as $182.44 intraday and was trading well below its 50-day and 200-day moving averages.
• Analyst sentiment remains cautious overall, with the stock carrying a consensus Hold rating and an average target price of $261.38. Recent analyst moves have included multiple target cuts from firms such as Bank of America, Oppenheimer, Goldman Sachs, and Robert W. Baird.
• Insiders have been buying shares, including directors James D. Hope and John E. Stokely, who purchased stock on May 7. Pool also recently raised its quarterly dividend to $1.30 per share and authorized a $600 million share buyback program.

Pool Corporation (NASDAQ:POOL - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Tuesday after Stifel Nicolaus lowered their price target on the stock from $240.00 to $210.00. Stifel Nicolaus currently has a hold rating on the stock. Pool traded as low as $182.44 and last traded at $181.9230, with a volume of 33031 shares trading hands. The stock had previously closed at $184.77.

Several other research analysts have also recently weighed in on POOL. Zacks Research raised shares of Pool from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Bank of America decreased their target price on Pool from $229.00 to $226.00 and set an "underperform" rating on the stock in a research report on Monday, April 20th. Oppenheimer lowered their target price on Pool from $346.00 to $280.00 and set an "outperform" rating on the stock in a research note on Tuesday, February 24th. The Goldman Sachs Group reduced their price target on Pool from $360.00 to $310.00 and set a "buy" rating for the company in a research note on Tuesday, January 13th. Finally, Robert W. Baird decreased their price objective on Pool from $320.00 to $300.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Four equities 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 company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $261.38.

Insiders Place Their Bets

In other news, Director James D. Hope acquired 464 shares of the stock in a transaction on Thursday, May 7th. The stock was acquired at an average cost of $194.41 per share, for a total transaction of $90,206.24. Following the completion of the transaction, the director directly owned 3,678 shares in the company, valued at approximately $715,039.98. This trade represents a 14.44% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John E. Stokely bought 1,000 shares of Pool stock in a transaction on Thursday, May 7th. The stock was acquired at an average cost of $193.06 per share, for a total transaction of $193,060.00. Following the acquisition, the director owned 16,230 shares in the company, valued at approximately $3,133,363.80. This represents a 6.57% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 22,024 shares of company stock valued at $4,424,071 over the last three months. 3.00% of the stock is owned by corporate insiders.

Trending Headlines about Pool

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Two recent reports noted insider buying by Pool Corporation directors, which can be a bullish signal because executives and directors are putting personal capital into the stock. Insider Buying: Pool NASDAQ: POOL Director Purchases $193,060.00 in Stock
• Positive Sentiment: A second insider purchase was also reported, adding to the perception that management may see value at current levels. Insider Buying: Pool NASDAQ: POOL Director Acquires $90,206.24 in Stock
• Neutral Sentiment: Short-interest data showed zero shares reported, which does not provide a clear trading signal for investors.
• Neutral Sentiment: Other articles in the feed refer to unrelated “pool” stories, such as reflecting pool construction and pool-cleaning products, and do not appear to affect Pool Corporation’s fundamentals.
• Negative Sentiment: Stifel lowered its price target on Pool Corporation to $210 from $240 and maintained a Hold rating, reflecting softer expectations for the stock’s upside. POOL was also already trading well below its 50-day and 200-day moving averages, reinforcing bearish sentiment. Read More

Institutional Trading of Pool

A number of large investors have recently bought and sold shares of POOL. Jacobs Levy Equity Management Inc. bought a new stake in Pool in the 1st quarter valued at about $400,000. Millennium Management LLC boosted its holdings in Pool by 237.9% in the first quarter. Millennium Management LLC now owns 17,390 shares of the specialty retailer's stock worth $5,536,000 after acquiring an additional 12,244 shares in the last quarter. Empowered Funds LLC acquired a new stake in Pool in the first quarter valued at approximately $639,000. Geneos Wealth Management Inc. increased its holdings in shares of Pool by 164.4% during the first quarter. Geneos Wealth Management Inc. now owns 156 shares of the specialty retailer's stock valued at $50,000 after acquiring an additional 97 shares in the last quarter. Finally, Acadian Asset Management LLC raised its position in shares of Pool by 201.2% during the first quarter. Acadian Asset Management LLC now owns 2,012 shares of the specialty retailer's stock worth $639,000 after purchasing an additional 1,344 shares during the period. 98.99% of the stock is currently owned by institutional investors and hedge funds.

Pool Trading Down 1.8%

The business has a fifty day moving average of $210.78 and a 200-day moving average of $236.00. 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 $6.61 billion, a P/E ratio of 16.81, a PEG ratio of 2.38 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 EPS for the quarter, topping analysts' consensus estimates of $1.34 by $0.09. The firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.82 billion. Pool had a return on equity of 32.37% and a net margin of 7.57%.The company's revenue for the quarter was up 6.2% on a year-over-year basis. During the same period in the previous year, the company posted $1.32 EPS. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. Analysts anticipate that Pool Corporation will post 11.07 earnings per share for the current fiscal year.

Pool Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be given a dividend of $1.30 per share. The ex-dividend date of this dividend is 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 dividend yield of 2.9%. Pool's payout ratio is 46.00%.

Pool announced that its Board of Directors has approved a share buyback program on Wednesday, April 29th that allows the company to buyback $600.00 million in outstanding shares. This buyback authorization allows the specialty retailer to repurchase up to 7.8% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's management 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.