Pool (NASDAQ:POOL) Shares Gap Down - Should You Sell?

Key Points

• Pool shares gapped down at the open, falling from a previous close of $210.07 to $195.89 before trading around $202.61, reflecting a sharp near-term selloff.
• Recent commentary has been mixed: Jim Cramer is bullish on Pool, but analysts have trimmed price targets and ratings are only a consensus “Hold” with a $264.50 target.
• The company’s outlook is being pressured by weaker pool-product demand, as Pentair warned that pool destocking is hurting results; however, Pool has also boosted its dividend and authorized a $600 million share buyback.

Pool Corporation (NASDAQ:POOL - Get Free Report)'s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $210.07, but opened at $195.89. Pool shares last traded at $202.6090, with a volume of 177,675 shares.

Trending Headlines about Pool

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Jim Cramer said he is bullish on Pool Corporation, naming it among the stocks he would buy. Jim Cramer: Buy This Industrial Stock, EquipmentShare Is ‘Disappointing’
• Neutral Sentiment: News about the Washington, D.C. Reflecting Pool being drained and reopened is unrelated to Pool Corporation’s business and is unlikely to affect the stock. Trump says Reflecting Pool has been drained and will be ‘put back into service soon’
• Neutral Sentiment: Additional articles about the Reflecting Pool “gash” and related photos are not relevant to Pool Corporation’s fundamentals. Reflecting Pool gash that Trump claimed vandals caused is hard to find
• Negative Sentiment: Pentair’s warning that pool destocking is hurting results suggests weaker near-term demand in the pool products market and may weigh on Pool Corporation’s outlook. Pentair Stock Plunges as Pool Destocking Forces Deep 2026 Guidance Cut

Analysts Set New Price Targets

POOL has been the subject of a number of recent research reports. Wells Fargo & Company cut their target price on shares of Pool from $230.00 to $215.00 and set an "equal weight" rating for the company in a report on Wednesday, April 8th. Weiss Ratings downgraded shares of Pool from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, May 14th. Zacks Research upgraded shares of Pool from a "strong sell" rating to a "hold" rating in a research report on Monday, April 27th. Wall Street Zen raised shares of Pool from a "sell" rating to a "hold" rating in a research note on Monday, April 27th. Finally, 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 report on Monday, April 20th. Four analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $264.50.

Pool Stock Performance

The stock has a market cap of $7.33 billion, a P/E ratio of 18.56, a PEG ratio of 2.67 and a beta of 1.05. The business has a 50 day moving average price of $193.85 and a 200 day moving average price of $218.06. The company has a quick ratio of 0.55, a current ratio of 1.87 and a debt-to-equity ratio of 1.09.

Pool (NASDAQ:POOL - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The specialty retailer reported $1.43 earnings per share (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%.Pool's quarterly revenue was up 6.2% compared to the same quarter last year. During the same period last year, the company earned $1.32 EPS. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. As a group, sell-side analysts expect that Pool Corporation will post 11.08 EPS for the current year.

Pool Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th were given a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 2.6%. This is a positive change from Pool's previous quarterly dividend of $1.25. The ex-dividend date was Thursday, May 14th. Pool's dividend payout ratio is 47.84%.

Pool announced that its Board of Directors has initiated a share buyback plan on Wednesday, April 29th that authorizes the company to buyback $600.00 million in shares. This buyback authorization authorizes the specialty retailer to purchase up to 7.8% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Insider Activity at Pool

In related news, Director John E. Stokely acquired 1,000 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average price of $193.06 per share, for a total transaction of $193,060.00. Following the acquisition, the director directly owned 16,230 shares of the company's stock, valued at $3,133,363.80. This represents a 6.57% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director David G. Whalen acquired 525 shares of the firm's stock in a transaction that occurred on Friday, May 8th. The shares were bought at an average price of $190.44 per share, with a total value of $99,981.00. Following the acquisition, the director directly owned 8,936 shares in the company, valued at $1,701,771.84. This represents a 6.24% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have bought 21,989 shares of company stock valued at $4,042,747. Company insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Pool

Hedge funds have recently added to or reduced their stakes in the stock. T. Rowe Price Investment Management Inc. lifted its stake in Pool by 3,831.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,001,987 shares of the specialty retailer's stock worth $457,955,000 after acquiring an additional 1,951,070 shares during the period. Norges Bank purchased a new position in Pool during the 4th quarter valued at about $97,612,000. Wellington Management Group LLP increased its position in Pool by 16.2% during the 3rd quarter. Wellington Management Group LLP now owns 2,563,373 shares of the specialty retailer's stock valued at $794,825,000 after purchasing an additional 357,643 shares during the period. Southpoint Capital Advisors LP purchased a new position in Pool during the 4th quarter valued at about $68,625,000. Finally, Adage Capital Partners GP L.L.C. raised its holdings in shares of Pool by 254.6% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 339,716 shares of the specialty retailer's stock valued at $77,710,000 after purchasing an additional 243,907 shares in the last quarter. 98.99% of the stock is currently owned by institutional investors.

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.