Pool (NASDAQ:POOL) Share Price Breaks Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Pool shares rose above their 200-day moving average, trading near $204.12 compared with the $203.19 technical level, while the company’s market capitalization stood at approximately $7.42 billion.
• Analysts remain mixed, with five Buy, five Hold, and three Sell ratings. The average price target is $227.70, although several firms recently reduced their targets and Longbow Research downgraded the stock to Neutral.
• Pool reported quarterly earnings of $3.40 per share, beating estimates by $0.04, while revenue increased 3.7% year over year to $1.50 billion. The company also declared a $1.30 quarterly dividend, equivalent to $5.20 annually and a yield of roughly 2.5%–2.7%.

Pool Corporation (NASDAQ:POOL - Get Free Report) shares passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $203.19 and traded as high as $204.15. Pool shares last traded at $204.12, with a volume of 611,046 shares traded.

More Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Pool Corporation declared a quarterly cash dividend of $1.30 per share, payable November 25 to shareholders of record on November 11. The dividend represents $5.20 in annualized payments and a yield of approximately 2.7%, which may support investor demand for the stock. Pool Corporation Declares Quarterly Cash Dividend
• Neutral Sentiment: The dividend’s ex-dividend date is November 10. Because the payment is consistent with Pool’s regular shareholder-return program, the announcement is generally supportive but is unlikely by itself to materially change earnings expectations. Pool Corporation Declares Quarterly Cash Dividend Payment

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Oppenheimer reduced their price target on shares of Pool from $280.00 to $227.00 and set an "outperform" rating for the company in a research report on Friday, July 24th. Bank of America lowered their price objective on shares of Pool from $226.00 to $206.00 and set an "underperform" rating on the stock in a report on Monday, July 20th. Longbow Research lowered shares of Pool from a "buy" rating to a "neutral" rating in a research note on Monday, October 19th. Wells Fargo & Company lifted their price objective on shares of Pool from $165.00 to $190.00 and gave the company an "equal weight" rating in a report on Friday, October 23rd. Finally, Robert W. Baird set a $250.00 price objective on shares of Pool in a report on Friday, October 23rd. Five research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $227.70.

Pool Stock Up 4.4%

The company has a market cap of $7.42 billion, a P/E ratio of 18.78, a price-to-earnings-growth ratio of 2.97 and a beta of 1.05. The company has a 50 day moving average of $174.59 and a 200-day moving average of $203.19. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.46 and a quick ratio of 0.86.

Pool (NASDAQ:POOL - Get Free Report) last posted its quarterly earnings data on Thursday, October 22nd. The specialty retailer reported $3.40 earnings per share for the quarter, topping the consensus estimate of $3.36 by $0.04. The company had revenue of $1.50 billion for the quarter, compared to analysts' expectations of $1.48 billion. Pool had a net margin of 7.27% and a return on equity of 33.50%. Pool's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period in the prior year, the business earned $3.39 earnings per share. On average, equities analysts predict that Pool Corporation will post 10.95 earnings per share for the current year.

Pool Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, November 11th will be paid a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, November 10th. Pool's dividend payout ratio is 47.84%.

Institutional Trading of Pool

A number of institutional investors have recently modified their holdings of POOL. IFP Advisors Inc lifted its position in Pool by 117.9% during the second quarter. IFP Advisors Inc now owns 122 shares of the specialty retailer's stock valued at $26,000 after buying an additional 66 shares during the period. Elevation Wealth Partners LLC boosted its holdings in shares of Pool by 2,660.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 138 shares of the specialty retailer's stock valued at $30,000 after buying an additional 133 shares in the last quarter. CoreCap Advisors LLC boosted its holdings in shares of Pool by 214.3% during the 2nd quarter. CoreCap Advisors LLC now owns 154 shares of the specialty retailer's stock valued at $33,000 after buying an additional 105 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Pool in the 2nd quarter worth about $47,000. Finally, Root Financial Partners LLC purchased a new stake in shares of Pool in the 3rd quarter worth about $35,000. 98.99% of the stock is currently owned by hedge funds and other institutional investors.

About Pool

Pool Corporation, doing business as POOLCORP, is a wholesale distributor of swimming pool and outdoor living products. The company supplies pool contractors, retailers, builders, and service professionals with products used to construct, renovate, maintain, and enhance residential and commercial pools.

Its product offerings include swimming pool equipment, pumps, filters, heaters, cleaners, lighting, chemicals, replacement parts, and maintenance supplies. POOLCORP also distributes products for outdoor living, including patio and recreational items, as well as irrigation and landscape-related supplies in selected markets.

Founded in 1993 and headquartered in Covington, Louisiana, POOLCORP serves customers through a network of distribution centers and sales operations in the United States, Canada, Europe, and Australia.

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.