A. O. Smith (NYSE:AOS) Stock Crosses Above 200-Day Moving Average - What's Next?

Key Points

• A. O. Smith shares rose above their 200-day moving average, reaching $65.65 and last trading near $65.38, compared with the average of $63.52.
• Analyst sentiment remains cautious: the stock carries an average “Reduce” rating, with one Buy, seven Hold, and two Sell ratings, and an average price target of $66.
• The company beat quarterly EPS estimates ($0.93 versus $0.90) despite slightly lower-than-expected revenue, and increased its quarterly dividend to $0.38 per share, or a 2.3% annualized yield.

Shares of A. O. Smith Corporation (NYSE:AOS - Get Free Report) crossed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $63.52 and traded as high as $65.65. A. O. Smith shares last traded at $65.3760, with a volume of 1,781,306 shares changing hands.

Analyst Ratings Changes

AOS has been the topic of several recent research reports. Longbow Research downgraded A. O. Smith from a "buy" rating to a "neutral" rating in a research note on Monday, October 19th. The Goldman Sachs Group reiterated a "sell" rating and set a $58.00 price objective on shares of A. O. Smith in a research note on Friday. Zacks Research raised A. O. Smith from a "strong sell" rating to a "hold" rating in a report on Monday, August 10th. Citigroup boosted their target price on A. O. Smith from $64.00 to $67.00 and gave the stock a "neutral" rating in a report on Friday. Finally, Stifel Nicolaus set a $59.00 target price on A. O. Smith and gave the stock a "hold" rating in a research note on Sunday, October 18th. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Reduce" and an average price target of $66.00.

A. O. Smith Price Performance

The firm's fifty day simple moving average is $59.02 and its 200-day simple moving average is $63.52. The firm has a market capitalization of $8.89 billion, a PE ratio of 18.21, a PEG ratio of 1.36 and a beta of 1.12. The company has a quick ratio of 1.04, a current ratio of 1.59 and a debt-to-equity ratio of 0.32.

A. O. Smith (NYSE:AOS - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The industrial products company reported $0.93 EPS for the quarter, beating analysts' consensus estimates of $0.90 by $0.03. The firm had revenue of $940.50 million for the quarter, compared to analysts' expectations of $960.20 million. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The business's revenue for the quarter was down .2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.94 earnings per share. On average, research analysts forecast that A. O. Smith Corporation will post 3.59 earnings per share for the current fiscal year.

A. O. Smith Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Friday, October 30th will be paid a dividend of $0.38 per share. The ex-dividend date is Friday, October 30th. This represents a $1.52 annualized dividend and a yield of 2.3%. This is a positive change from A. O. Smith's previous quarterly dividend of $0.36. A. O. Smith's dividend payout ratio (DPR) is 40.11%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of AOS. First Trust Advisors LP grew its position in A. O. Smith by 10.4% in the 1st quarter. First Trust Advisors LP now owns 2,168,894 shares of the industrial products company's stock worth $143,017,000 after purchasing an additional 203,846 shares during the period. Dimensional Fund Advisors LP raised its stake in A. O. Smith by 3.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 1,959,696 shares of the industrial products company's stock valued at $129,202,000 after buying an additional 64,873 shares during the last quarter. Madison Asset Management LLC bought a new position in shares of A. O. Smith during the 2nd quarter valued at $92,005,000. Bank of New York Mellon Corp lifted its holdings in shares of A. O. Smith by 3.1% during the 1st quarter. Bank of New York Mellon Corp now owns 1,425,759 shares of the industrial products company's stock valued at $94,014,000 after buying an additional 42,702 shares during the period. Finally, Sei Investments Co. lifted its holdings in shares of A. O. Smith by 0.4% during the 1st quarter. Sei Investments Co. now owns 1,346,863 shares of the industrial products company's stock valued at $88,812,000 after buying an additional 5,175 shares during the period. Hedge funds and other institutional investors own 76.10% of the company's stock.

A. O. Smith Company Profile

A. O. Smith Corporation is a manufacturer of water heating and water treatment products for residential, commercial and industrial customers. Its portfolio includes gas and electric storage water heaters, tankless water heaters, boilers, heat pump water heaters, water filtration systems, water softeners and reverse-osmosis products.

The company markets products under the A. O. Smith brand and other regional brands, serving applications ranging from homes and apartments to hotels, hospitals, schools, manufacturing facilities and other commercial properties.

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