A. O. Smith (NYSE:AOS) Sets New 12-Month Low After Analyst Downgrade
by Renee Jackson · The Cerbat GemA. O. Smith Corporation (NYSE:AOS – Get Free Report)’s share price hit a new 52-week low during mid-day trading on Wednesday after Zacks Research downgraded the stock from a hold rating to a strong sell rating. The stock traded as low as $58.22 and last traded at $58.8720, with a volume of 1462349 shares changing hands. The stock had previously closed at $58.86.
Other analysts have also issued reports about the stock. JPMorgan Chase & Co. decreased their target price on shares of A. O. Smith from $75.00 to $65.00 and set a “neutral” rating on the stock in a research report on Friday, May 1st. Jefferies Financial Group set a $75.00 price objective on A. O. Smith and gave the company a “hold” rating in a research note on Friday, January 9th. Oppenheimer reaffirmed an “outperform” rating and issued a $80.00 price target on shares of A. O. Smith in a research note on Friday, May 1st. The Goldman Sachs Group dropped their price objective on A. O. Smith from $69.00 to $61.00 and set a “sell” rating for the company in a research note on Monday, April 13th. Finally, DA Davidson set a $67.00 target price on shares of A. O. Smith and gave the company a “neutral” rating in a research note on Monday. Two research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, A. O. Smith has an average rating of “Hold” and an average target price of $70.44.
Read Our Latest Stock Analysis on AOS
Insider Transactions at A. O. Smith
In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of the company’s stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $74.39, for a total value of $82,126.56. Following the completion of the sale, the senior vice president owned 2,201 shares of the company’s stock, valued at approximately $163,732.39. This represents a 33.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.50% of the company’s stock.
Hedge Funds Weigh In On A. O. Smith
Several institutional investors have recently modified their holdings of AOS. JPMorgan Chase & Co. raised its position in A. O. Smith by 26.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 665,793 shares of the industrial products company’s stock valued at $48,876,000 after buying an additional 139,117 shares during the last quarter. Earnest Partners LLC boosted its stake in shares of A. O. Smith by 1.8% during the 3rd quarter. Earnest Partners LLC now owns 2,082,982 shares of the industrial products company’s stock worth $152,912,000 after buying an additional 36,122 shares during the last quarter. First Trust Advisors LP lifted its stake in A. O. Smith by 4.6% in the third quarter. First Trust Advisors LP now owns 2,508,947 shares of the industrial products company’s stock valued at $184,182,000 after acquiring an additional 109,654 shares during the last quarter. Alps Advisors Inc. grew its holdings in A. O. Smith by 19.9% during the third quarter. Alps Advisors Inc. now owns 273,216 shares of the industrial products company’s stock worth $20,057,000 after purchasing an additional 45,299 shares during the period. Finally, Dimensional Fund Advisors LP increased its holdings in shares of A. O. Smith by 2.1% in the third quarter. Dimensional Fund Advisors LP now owns 1,871,694 shares of the industrial products company’s stock valued at $137,393,000 after purchasing an additional 38,694 shares during the last quarter. Institutional investors own 76.10% of the company’s stock.
A. O. Smith Trading Down 0.8%
The company has a quick ratio of 1.00, a current ratio of 1.56 and a debt-to-equity ratio of 0.31. The company has a market cap of $8.26 billion, a P/E ratio of 15.89, a PEG ratio of 1.35 and a beta of 1.23. The business has a fifty day moving average price of $66.64 and a 200-day moving average price of $68.77.
A. O. Smith (NYSE:AOS – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The industrial products company reported $0.85 EPS for the quarter, missing analysts’ consensus estimates of $0.94 by ($0.09). A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The company had revenue of $945.60 million for the quarter, compared to the consensus estimate of $974.06 million. During the same quarter last year, the business earned $0.95 EPS. A. O. Smith’s revenue was down 1.9% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. On average, analysts forecast that A. O. Smith Corporation will post 3.78 earnings per share for the current year.
A. O. Smith Announces Dividend
The business also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Thursday, April 30th will be paid a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Thursday, April 30th. A. O. Smith’s payout ratio is presently 38.30%.
About A. O. Smith
A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.
The company operates through two primary segments: North America and Asia.