Pool (NASDAQ:POOL) Stock Price Down 3.5% - Here's What Happened

Pool Co. (NASDAQ:POOL - Get Free Report) shares fell 3.5% on Friday . The company traded as low as $298.44 and last traded at $297.60. 171,121 shares changed hands during mid-day trading, a decline of 58% from the average session volume of 406,381 shares. The stock had previously closed at $308.45.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on POOL. Wall Street Zen downgraded shares of Pool from a "hold" rating to a "sell" rating in a research note on Friday, February 28th. Oppenheimer lowered their target price on shares of Pool from $370.00 to $322.00 and set an "outperform" rating on the stock in a research note on Monday, April 28th. Wells Fargo & Company set a $300.00 target price on shares of Pool in a research note on Friday, April 25th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Pool in a research note on Tuesday, April 1st. They set a "hold" rating and a $344.00 price target on the stock. Finally, Robert W. Baird decreased their price target on shares of Pool from $325.00 to $310.00 and set a "neutral" rating on the stock in a research note on Friday, April 25th. Two analysts have rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat.com, Pool presently has an average rating of "Hold" and an average target price of $336.22.

Pool Price Performance

The company has a quick ratio of 0.77, a current ratio of 2.05 and a debt-to-equity ratio of 0.71. The stock has a market cap of $11.17 billion, a P/E ratio of 26.34, a PEG ratio of 2.03 and a beta of 1.20. The firm's fifty day moving average price is $304.72 and its 200-day moving average price is $332.26.

Pool (NASDAQ:POOL - Get Free Report) last issued its earnings results on Thursday, April 24th. The specialty retailer reported $1.32 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.42 by ($0.10). Pool had a return on equity of 31.11% and a net margin of 8.18%. The firm had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.10 billion. During the same quarter in the prior year, the business posted $1.85 EPS. The firm's revenue for the quarter was down 4.4% on a year-over-year basis. Analysts forecast that Pool Co. will post 11.32 earnings per share for the current year.

Pool Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 29th. Stockholders of record on Thursday, May 15th were issued a $1.25 dividend. This is a boost from Pool's previous quarterly dividend of $1.20. The ex-dividend date of this dividend was Thursday, May 15th. This represents a $5.00 annualized dividend and a dividend yield of 1.68%. Pool's dividend payout ratio (DPR) is currently 46.90%.

Pool declared that its Board of Directors has initiated a stock repurchase program on Wednesday, April 30th that permits the company to repurchase $600.00 million in outstanding shares. This repurchase authorization permits the specialty retailer to reacquire up to 5.4% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company's board believes its shares are undervalued.

Insider Activity at Pool

In related news, SVP Jennifer M. Neil sold 1,223 shares of Pool stock in a transaction on Monday, March 31st. The shares were sold at an average price of $315.00, for a total value of $385,245.00. Following the sale, the senior vice president now owns 9,667 shares in the company, valued at $3,045,105. The trade was a 11.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 3.00% of the stock is currently owned by company insiders.

Institutional Trading of Pool

Several large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its holdings in Pool by 0.3% in the first quarter. Vanguard Group Inc. now owns 4,456,246 shares of the specialty retailer's stock valued at $1,418,646,000 after acquiring an additional 12,795 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC boosted its holdings in Pool by 2.3% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,250,422 shares of the specialty retailer's stock valued at $716,422,000 after acquiring an additional 50,566 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in Pool by 3.6% in the first quarter. JPMorgan Chase & Co. now owns 1,284,918 shares of the specialty retailer's stock valued at $409,054,000 after acquiring an additional 44,897 shares in the last quarter. Wellington Management Group LLP boosted its holdings in Pool by 1.1% in the first quarter. Wellington Management Group LLP now owns 1,054,066 shares of the specialty retailer's stock valued at $335,562,000 after acquiring an additional 11,552 shares in the last quarter. Finally, Geode Capital Management LLC boosted its holdings in Pool by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 977,862 shares of the specialty retailer's stock valued at $332,566,000 after acquiring an additional 13,519 shares in the last quarter. Institutional investors own 98.99% of the company's stock.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling.