Weiss Ratings Reaffirms Hold (C) Rating for A. O. Smith (NYSE:AOS)

Key Points

• Weiss Ratings has reiterated a "hold (c)" rating for A. O. Smith (NYSE:AOS), reflecting a consensus outlook among several analysts.
• A. O. Smith's stock is currently priced at $72.57, with an average price target of $77.43 from analysts.
• The company reported a quarterly EPS of $1.07, exceeding expectations and reflecting a net margin of 13.68% despite a year-over-year revenue decline of 1.3%.

A. O. Smith (NYSE:AOS - Get Free Report)'s stock had its "hold (c)" rating reiterated by analysts at Weiss Ratings in a note issued to investors on Thursday,Weiss Ratings reports.

Several other equities research analysts have also issued reports on the stock. JPMorgan Chase & Co. initiated coverage on shares of A. O. Smith in a research note on Tuesday, June 24th. They issued a "neutral" rating and a $70.00 price target on the stock. Oppenheimer lifted their target price on A. O. Smith from $82.00 to $88.00 and gave the company an "outperform" rating in a research report on Monday, July 28th. Robert W. Baird upped their target price on A. O. Smith from $76.00 to $82.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. Stifel Nicolaus raised their price target on A. O. Smith from $78.00 to $81.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Finally, UBS Group reaffirmed a "neutral" rating and set a $76.00 price target (up previously from $74.00) on shares of A. O. Smith in a research report on Monday, July 28th. Five analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $77.43.

A. O. Smith Stock Down 1.5%

NYSE:AOS opened at $72.57 on Thursday. The stock has a 50-day simple moving average of $68.20 and a 200 day simple moving average of $66.81. A. O. Smith has a 52-week low of $58.83 and a 52-week high of $92.06. The company has a market cap of $10.17 billion, a PE ratio of 20.21, a PEG ratio of 1.60 and a beta of 1.22. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.03 and a current ratio of 1.65.

A. O. Smith (NYSE:AOS - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The industrial products company reported $1.07 earnings per share for the quarter, topping the consensus estimate of $0.97 by $0.10. The company had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $997.89 million. A. O. Smith had a net margin of 13.68% and a return on equity of 28.42%. The business's quarterly revenue was down 1.3% on a year-over-year basis. During the same period last year, the business earned $1.06 EPS. On average, sell-side analysts expect that A. O. Smith will post 3.76 EPS for the current fiscal year.

Insider Transactions at A. O. Smith

In related news, Chairman Kevin J. Wheeler sold 22,200 shares of the business's stock in a transaction that occurred on Wednesday, July 30th. The stock was sold at an average price of $71.26, for a total transaction of $1,581,972.00. Following the transaction, the chairman directly owned 100,647 shares of the company's stock, valued at approximately $7,172,105.22. The trade was a 18.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.76% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On A. O. Smith

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Principal Financial Group Inc. lifted its stake in shares of A. O. Smith by 9.7% during the 1st quarter. Principal Financial Group Inc. now owns 178,543 shares of the industrial products company's stock worth $11,670,000 after buying an additional 15,769 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its holdings in A. O. Smith by 41.6% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 7,089 shares of the industrial products company's stock valued at $463,000 after acquiring an additional 2,084 shares during the period. Envestnet Asset Management Inc. lifted its position in A. O. Smith by 75.8% during the first quarter. Envestnet Asset Management Inc. now owns 402,039 shares of the industrial products company's stock worth $26,277,000 after acquiring an additional 173,366 shares during the last quarter. Cambridge Investment Research Advisors Inc. boosted its holdings in shares of A. O. Smith by 18.3% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 8,085 shares of the industrial products company's stock worth $528,000 after acquiring an additional 1,251 shares during the period. Finally, Allspring Global Investments Holdings LLC boosted its holdings in shares of A. O. Smith by 3.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 5,532 shares of the industrial products company's stock worth $363,000 after acquiring an additional 177 shares during the period. 76.10% of the stock is owned by institutional investors.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.

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