Pool (NASDAQ:POOL) Sets New 52-Week Low - What's Next?

Key Points

• Pool Corporation (NASDAQ:POOL) hit a new 52-week low intraday, falling to as low as $172.68 as investors reacted to recent weakness in the stock.
• The company recently beat quarterly EPS expectations at $1.43 per share, but revenue came in well below estimates, even as the business raised its quarterly dividend to $1.30 and authorized a $600 million share repurchase program.
• Analyst sentiment remains mixed, with several firms cutting price targets and the stock carrying an average Hold rating and a consensus price target of $261.38, while insider buying has recently signaled some confidence in the shares.

Shares of Pool Corporation (NASDAQ:POOL - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The company traded as low as $172.68 and last traded at $177.7580, with a volume of 102739 shares changing hands. The stock had previously closed at $175.35.

Pool News Roundup

Here are the key news stories impacting Pool this week:

• Positive Sentiment: A Pool Corporation director disclosed a large insider purchase worth about $1.76 million, which can signal management or board confidence in the company’s outlook. Insider Buying: Pool NASDAQ: POOL Director Purchases $1,759,500.00 in Stock
• Positive Sentiment: Market commentary highlighted consumer-driven companies using large share buybacks, a trend that can support investor sentiment around the sector and capital-return names like Pool Corporation. Consumer-Driven Stocks Boost Buybacks, Including Visa's $20B Plan (POOL)
• Neutral Sentiment: A separate article on Berkshire Hathaway portfolio changes mentioned POOL in passing, but it does not appear to be a direct business catalyst for Pool Corporation. Willing and Abel: Berkshire's New CEO Makes Huge Portfolio Changes in Q1 (POOL)

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on POOL shares. Wall Street Zen upgraded Pool from a "sell" rating to a "hold" rating in a research report on Monday, April 27th. Oppenheimer dropped their target price on Pool from $346.00 to $280.00 and set an "outperform" rating on the stock in a research report on Tuesday, February 24th. Zacks Research upgraded Pool from a "strong sell" rating to a "hold" rating in a research report on Monday, April 27th. Stifel Nicolaus dropped their target price on Pool from $240.00 to $210.00 and set a "hold" rating on the stock in a research report on Monday, May 11th. Finally, Robert W. Baird dropped their target price on Pool from $320.00 to $300.00 and set an "outperform" rating on the stock in a research report on Friday, February 20th. Four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $261.38.

Pool Trading Up 2.8%

The stock has a market cap of $6.57 billion, a P/E ratio of 16.52, a PEG ratio of 2.22 and a beta of 1.16. The firm's fifty day moving average price is $207.13 and its two-hundred day moving average price is $232.64. 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 (NASDAQ:POOL - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $1.14 billion for the quarter, compared to analysts' expectations of $1.82 billion. Pool had a net margin of 7.57% and a return on equity of 32.37%. The business's quarterly revenue was up 6.2% on a year-over-year basis. During the same quarter 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. As a group, equities research analysts forecast that Pool Corporation will post 11.08 EPS for the current year.

Pool Increases Dividend

The company also recently declared 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. 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 annualized dividend and a dividend yield of 2.9%. Pool's payout ratio is currently 47.84%.

Pool declared that its board has authorized 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 usually an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In other news, SVP Romain Kenneth G. St bought 5,560 shares of Pool stock in a transaction that occurred on Monday, February 23rd. The shares were acquired at an average price of $218.67 per share, with a total value of $1,215,805.20. Following the completion of the purchase, the senior vice president directly owned 82,845 shares in the company, valued at $18,115,716.15. The trade was a 7.19% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director De La Mesa Manuel J. Perez bought 10,000 shares of Pool 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. The trade was a 33.21% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased 32,549 shares of company stock valued at $6,283,552 over the last quarter. Insiders own 3.00% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in POOL. Clearstead Advisors LLC increased its stake 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 last quarter. Root Financial Partners LLC bought a new position in Pool in the third quarter valued at $29,000. Private Trust Co. NA boosted its position in Pool by 78.6% during the fourth quarter. Private Trust Co. NA now owns 125 shares of the specialty retailer's stock valued at $29,000 after buying an additional 55 shares during the period. CYBER HORNET ETFs LLC purchased a new stake in Pool during the second quarter valued at about $30,000. Finally, Covestor Ltd boosted its position in Pool by 348.4% during the fourth quarter. Covestor Ltd now owns 139 shares of the specialty retailer's stock valued at $32,000 after buying an additional 108 shares during the period. Institutional investors own 98.99% of the company's 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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