Wall Street Zen Downgrades Pool (NASDAQ:POOL) to Sell

Key Points

• Wall Street Zen downgraded Pool from "hold" to "sell"; however analyst coverage is mixed (5 buys, 5 holds, 2 sells) with a MarketBeat consensus rating of Hold and an average target price of $279.63.
• Quarterly results disappointed: Pool reported $0.84 EPS vs. $0.99 expected and $982.2M revenue vs. $999.1M (down ~0.5% YoY), but management issued FY2026 EPS guidance of $10.85–$11.15, close to analyst expectations (~11.32).
• Market signals are mixed: several brokers trimmed price targets (Goldman, Baird, Oppenheimer) while company insiders (a director and an SVP) recently bought shares, raising their ownership stakes.

Pool (NASDAQ:POOL - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Sunday.

Several other brokerages have also recently commented on POOL. Robert W. Baird dropped their target price on shares of Pool from $320.00 to $300.00 and set an "outperform" rating for the company in a research report on Friday, February 20th. The Goldman Sachs Group dropped their target price on shares of Pool from $360.00 to $310.00 and set a "buy" rating for the company in a research report on Tuesday, January 13th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Pool in a research report on Monday, December 29th. Stifel Nicolaus dropped their target price on shares of Pool from $240.00 to $232.00 and set a "hold" rating for the company in a research report on Monday, February 23rd. Finally, Oppenheimer decreased their price target on shares of Pool from $346.00 to $280.00 and set an "outperform" rating for the company in a report on Tuesday, February 24th. Five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Pool currently has a consensus rating of "Hold" and an average target price of $279.63.

Pool Stock Performance

Shares of Pool stock opened at $227.62 on Friday. The firm has a fifty day moving average of $220.06 and a two-hundred day moving average of $244.97. The stock has a market capitalization of $8.35 billion, a price-to-earnings ratio of 21.00, a PEG ratio of 2.82 and a beta of 1.26. Pool has a 52 week low of $195.49 and a 52 week high of $345.00. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.59 and a current ratio of 2.24.

Pool (NASDAQ:POOL - Get Free Report) last issued its earnings results on Thursday, February 19th. The specialty retailer reported $0.84 EPS for the quarter, missing the consensus estimate of $0.99 by ($0.15). The business had revenue of $982.21 million for the quarter, compared to the consensus estimate of $999.14 million. Pool had a net margin of 7.67% and a return on equity of 31.49%. The business's revenue was down .5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.97 EPS. Pool has set its FY 2026 guidance at 10.850-11.150 EPS. As a group, equities research analysts predict that Pool will post 11.32 EPS for the current year.

Insider Buying and Selling

In related news, Director De La Mesa Manuel J. Perez bought 5,000 shares of Pool stock in a transaction that occurred on Friday, March 13th. The stock was purchased at an average cost of $205.00 per share, with a total value of $1,025,000.00. Following the purchase, the director owned 110,108 shares in the company, valued at approximately $22,572,140. This trade represents a 4.76% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Romain Kenneth G. St bought 5,560 shares of Pool stock in a transaction that occurred on Monday, February 23rd. The stock was bought at an average cost of $218.67 per share, with a total value of $1,215,805.20. Following the completion of the purchase, the senior vice president owned 82,845 shares in the company, valued at approximately $18,115,716.15. This trade represents a 7.19% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Pool

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Root Financial Partners LLC acquired a new position in Pool in the 3rd quarter worth $29,000. CYBER HORNET ETFs LLC acquired a new position in Pool in the 2nd quarter worth $30,000. MUFG Securities EMEA plc acquired a new position in shares of Pool during the 2nd quarter worth about $33,000. Clearstead Advisors LLC boosted its stake in shares of Pool by 100.0% during the 4th quarter. Clearstead Advisors LLC now owns 122 shares of the specialty retailer's stock worth $28,000 after buying an additional 61 shares during the last quarter. Finally, Private Trust Co. NA boosted its stake in shares of Pool by 78.6% during the 4th quarter. Private Trust Co. NA now owns 125 shares of the specialty retailer's stock worth $29,000 after buying an additional 55 shares during the last quarter. 98.99% of the stock is owned by institutional investors and hedge funds.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Company-guidance supports sentiment: POOL set FY2026 EPS guidance of $10.85–$11.15, which signals management confidence and is near analyst expectations (consensus ~11.32), helping offset a quarterly miss.
• Positive Sentiment: Consumer interest and product innovation — press coverage highlights AI-powered robotic pool cleaners as a growing category, which could lift demand for aftermarket parts, service and distribution channels where POOL is a market leader. Read More.
• Positive Sentiment: Promotions on dedicated pool robots (e.g., Beatbot Sora 10 markdown) suggest retailers are actively merchandising robotic cleaners for the season — that can accelerate consumer adoption this spring. Read More.
• Neutral Sentiment: Local municipal activity: a Shoreline, WA council ballot measure to fund a pool facility could support local demand but is a geographically limited boost. Read More.
• Neutral Sentiment: Industry/tech licensing note (Sisvel POS patent pool additions) is unrelated to POOL’s core business; included for context on broader IP/licensing moves in adjacent sectors. Read More.
• Negative Sentiment: Recent quarterly results disappointed: POOL reported $0.84 EPS vs. $0.99 expected and revenue missed consensus (~$982.2M vs. ~$999.1M), with revenue down ~0.5% year-over-year — a near-term negative that can pressure the stock until growth re-accelerates.
• Negative Sentiment: Retail discounting on mass-market pools (Walmart inflatable and Coleman above-ground promotions) could compress margins or shift mix toward lower-priced items late into the selling season. Read More. Read More.

Pool Company Profile

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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