Pool (NASDAQ:POOL) Trading 7.1% Higher - Here's Why

Key Points

• Pool shares rose 7.1% in Tuesday trading, reaching as high as $192.85 after closing at $180.95 the previous day.
• Analysts have mostly turned cautious: the stock now has a consensus Hold rating, with recent target cuts from firms including Oppenheimer and BofA, though Pool still has an average price target of $261.38.
• The company reported better-than-expected EPS of $1.43 last quarter, raised its quarterly dividend to $1.30, and authorized a $600 million share repurchase program.

Pool Corporation (NASDAQ:POOL - Get Free Report)'s stock price traded up 7.1% on Tuesday . The company traded as high as $192.85 and last traded at $193.7930. 590,979 shares traded hands during mid-day trading, a decline of 30% from the average session volume of 839,828 shares. The stock had previously closed at $180.95.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Oppenheimer reduced their price target on shares of Pool from $346.00 to $280.00 and set an "outperform" rating for the company in a research note on Tuesday, February 24th. Robert W. Baird dropped their target price on shares of Pool from $320.00 to $300.00 and set an "outperform" rating on the stock in a report on Friday, February 20th. Bank of America cut their target price on shares of Pool from $229.00 to $226.00 and set an "underperform" rating for the company in a research report on Monday, April 20th. Wall Street Zen upgraded shares of Pool from a "sell" rating to a "hold" rating in a research note on Monday, April 27th. Finally, Zacks Research raised Pool from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $261.38.

Pool Trading Up 6.5%

The company has a market capitalization of $7.02 billion, a P/E ratio of 17.77, a PEG ratio of 2.35 and a beta of 1.10. 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 stock has a fifty day moving average of $199.12 and a 200 day moving average of $224.28.

Pool (NASDAQ:POOL - Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The specialty retailer reported $1.43 EPS 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 the consensus estimate of $1.82 billion. Pool had a return on equity of 32.37% and a net margin of 7.57%.The business's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.32 earnings per share. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. As a group, equities research analysts anticipate that Pool Corporation will post 11.08 EPS for the current fiscal year.

Pool Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 14th were issued a $1.30 dividend. The ex-dividend date of this dividend was Thursday, May 14th. This represents a $5.20 annualized dividend and a yield of 2.7%. This is an increase from Pool's previous quarterly dividend of $1.25. Pool's payout ratio is currently 47.84%.

Pool declared that its board has authorized a share repurchase program on Wednesday, April 29th that allows the company to repurchase $600.00 million in shares. This repurchase authorization allows the specialty retailer to reacquire up to 7.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity at Pool

In related news, Director David G. Whalen purchased 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, for a total transaction of $99,981.00. Following the acquisition, the director owned 8,936 shares of the company's stock, valued at approximately $1,701,771.84. This represents a 6.24% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director John E. Stokely acquired 1,000 shares of the firm's stock in a transaction on Thursday, May 7th. The stock was purchased at an average cost of $193.06 per share, with a total value of $193,060.00. Following the purchase, the director owned 16,230 shares of the company's stock, valued at $3,133,363.80. The trade was a 6.57% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have bought 26,989 shares of company stock worth $5,067,747. 3.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Pool

Institutional investors and hedge funds have recently modified their holdings of the business. Annis Gardner Whiting Capital Advisors LLC boosted its stake in shares of Pool by 20.0% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 270 shares of the specialty retailer's stock valued at $62,000 after purchasing an additional 45 shares during the period. Wealthspire Advisors LLC increased its position in shares of Pool by 4.8% during the fourth quarter. Wealthspire Advisors LLC now owns 1,051 shares of the specialty retailer's stock worth $240,000 after acquiring an additional 48 shares during the period. Mufg Securities Americas Inc. boosted its holdings in shares of Pool by 6.4% in the third quarter. Mufg Securities Americas Inc. now owns 886 shares of the specialty retailer's stock valued at $275,000 after purchasing an additional 53 shares during the period. Snowden Capital Advisors LLC grew its stake in Pool by 4.8% in the second quarter. Snowden Capital Advisors LLC now owns 1,163 shares of the specialty retailer's stock worth $339,000 after purchasing an additional 53 shares in the last quarter. Finally, Private Trust Co. NA raised its position in Pool by 78.6% during the 4th quarter. Private Trust Co. NA now owns 125 shares of the specialty retailer's stock valued at $29,000 after purchasing an additional 55 shares in the last quarter. 98.99% of the stock is owned by institutional investors.

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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