Pool (NASDAQ:POOL) Reaches New 12-Month Low - What's Next?

Key Points

• Pool shares hit a new 52-week low at $158.97, trading down 1.6% from the prior close, with the stock below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but averages to a “Hold” rating, with a consensus price target of $230.10; recent firms have lowered targets to between $185 and $206.
• Despite the share-price weakness, Pool beat quarterly EPS estimates, reported 2.2% year-over-year revenue growth, and maintains a quarterly dividend of $1.30, yielding about 3.3%.

Pool Corporation (NASDAQ:POOL - Get Free Report) shares reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $158.97 and last traded at $159.78, with a volume of 56431 shares. The stock had previously closed at $161.87.

Wall Street Analysts Forecast Growth

POOL has been the topic of a number of research reports. Bank of America decreased their price objective on Pool from $226.00 to $206.00 and set an "underperform" rating on the stock in a report on Monday, July 20th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Pool in a research report on Tuesday, August 11th. Robert W. Baird set a $260.00 price target on shares of Pool in a research note on Friday, July 24th. Stifel Nicolaus lowered their price objective on shares of Pool from $235.00 to $189.00 and set a "hold" rating for the company in a report on Friday, July 24th. Finally, Deutsche Bank Aktiengesellschaft set a $185.00 price objective on shares of Pool in a research note on Friday, July 24th. Five investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Pool presently has an average rating of "Hold" and an average price target of $230.10.

Pool Trading Down 1.6%

The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.91 and a current ratio of 2.67. The firm has a 50-day moving average of $183.65 and a 200-day moving average of $195.12. The firm has a market capitalization of $5.79 billion, a P/E ratio of 14.66, a price-to-earnings-growth ratio of 2.20 and a beta of 1.06.

Pool (NASDAQ:POOL - Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The specialty retailer reported $5.38 earnings per share for the quarter, beating the consensus estimate of $5.33 by $0.05. Pool had a return on equity of 32.74% and a net margin of 7.40%.The firm had revenue of $1.82 billion during the quarter, compared to the consensus estimate of $1.82 billion. During the same quarter in the previous year, the company posted $5.17 earnings per share. The business's revenue was up 2.2% on a year-over-year basis. Pool has set its FY 2026 guidance at 10.660-10.960 EPS. On average, equities research analysts anticipate that Pool Corporation will post 10.95 EPS for the current fiscal year.

Pool Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th were issued a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date of this dividend was Thursday, August 13th. Pool's dividend payout ratio (DPR) is 47.84%.

Hedge Funds Weigh In On Pool

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of Pool in the second quarter worth about $866,576,000. T. Rowe Price Investment Management Inc. lifted its holdings in Pool by 3,831.9% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,001,987 shares of the specialty retailer's stock worth $457,955,000 after buying an additional 1,951,070 shares during the period. Bank of New York Mellon Corp purchased a new stake in Pool in the 2nd quarter worth approximately $148,216,000. Southpoint Capital Advisors LP grew its position in shares of Pool by 66.7% in the 1st quarter. Southpoint Capital Advisors LP now owns 500,000 shares of the specialty retailer's stock worth $101,165,000 after buying an additional 200,000 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Pool in the 4th quarter worth approximately $97,612,000. 98.99% of the stock is owned by institutional investors.

About Pool

Pool Corporation NASDAQ: POOL is a distributor of swimming pool supplies, equipment and related products. The company serves professional pool contractors, retailers, builders and service providers, supplying products used to build, renovate, maintain and repair residential and commercial pools.

Its product offerings include pool chemicals, pumps, filters, heaters, cleaners, lighting, replacement parts and safety equipment. Pool also distributes products related to irrigation, landscaping and outdoor living, including patio and recreational products that complement pool installations and backyard projects.

Founded in 1993 and headquartered in Covington, Louisiana, Pool Corporation serves customers through a network of distribution centers and sales locations across North America, Europe and Australia.

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