Pool (NASDAQ:POOL) Stock Price Up 8.7% on Earnings Beat

Key Points

• Pool’s stock rose 8.7% after the company reported quarterly earnings of $3.40 per share, beating estimates by $0.04, while revenue reached $1.50 billion—up 3.7% year over year.
• The company announced a quarterly dividend of $1.30, equivalent to $5.20 annually and a 2.8% yield, with a payout ratio of 47.84%.
• Analyst sentiment remains mixed, with an overall “Hold” rating and an average price target of $226.70; institutional investors own 98.99% of the stock.

Pool Corporation (NASDAQ:POOL - Get Free Report)'s stock price traded up 8.7% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $189.66 and last traded at $187.5250. Approximately 223,323 shares traded hands during trading, a decline of 74% from the average session volume of 854,870 shares. The stock had previously closed at $172.44.

The specialty retailer reported $3.40 earnings per share for the quarter, beating the consensus estimate of $3.36 by $0.04. The business had revenue of $1.50 billion for the quarter, compared to analysts' expectations of $1.48 billion. Pool had a net margin of 7.40% and a return on equity of 32.74%. The firm's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.39 EPS.

Pool Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th were issued a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Thursday, August 13th. Pool's dividend payout ratio (DPR) is currently 47.84%.

Wall Street Analyst Weigh In

POOL has been the subject of a number of analyst reports. Bank of America lowered their price target on Pool from $226.00 to $206.00 and set an "underperform" rating for the company in a research report on Monday, July 20th. Wells Fargo & Company reduced their target price on shares of Pool from $185.00 to $165.00 and set an "equal weight" rating for the company in a research note on Friday, October 16th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Pool in a research note on Tuesday, August 11th. Deutsche Bank Aktiengesellschaft set a $185.00 target price on shares of Pool in a report on Friday, July 24th. Finally, DA Davidson began coverage on shares of Pool in a research report on Monday, August 24th. They set a "neutral" rating and a $210.00 price target on the stock. Five equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $226.70.

Institutional Trading of Pool

A number of hedge funds have recently bought and sold shares of POOL. Pacer Advisors Inc. grew its stake in Pool by 1.5% in the 1st quarter. Pacer Advisors Inc. now owns 3,384 shares of the specialty retailer's stock valued at $685,000 after purchasing an additional 51 shares during the period. IFP Advisors Inc increased its position in shares of Pool by 117.9% during the 2nd quarter. IFP Advisors Inc now owns 122 shares of the specialty retailer's stock valued at $26,000 after purchasing an additional 66 shares during the last quarter. Cim LLC raised its stake in shares of Pool by 2.4% during the 1st quarter. Cim LLC now owns 3,613 shares of the specialty retailer's stock worth $731,000 after purchasing an additional 84 shares during the period. Patton Fund Management Inc. raised its stake in shares of Pool by 11.4% during the 1st quarter. Patton Fund Management Inc. now owns 995 shares of the specialty retailer's stock worth $201,000 after purchasing an additional 102 shares during the period. Finally, CoreCap Advisors LLC raised its stake in shares of Pool by 214.3% during the 2nd quarter. CoreCap Advisors LLC now owns 154 shares of the specialty retailer's stock worth $33,000 after purchasing an additional 105 shares during the period. 98.99% of the stock is currently owned by institutional investors.

Pool Stock Up 9.2%

The stock has a 50 day moving average price of $173.96 and a 200 day moving average price of $190.83. 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 company has a market capitalization of $6.85 billion, a P/E ratio of 17.35, a PEG ratio of 2.64 and a beta of 1.05.

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.