Pool Corp. (NASDAQ:POOL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “For Pool, the second quarter of 2016 marked the company’s 25th consecutive quarter of year-over-year growth in sales, gross profit and operating earnings. Notably, the company should continue to benefit in the near term from base business sales growth and favorable trends in the housing market. Continually strong growth in the pool renovation category along with reasonable improvement in green segment sales (the Horizon segment), is a major positive. The company’s leading market share position and opportunistic expansion strategies also position it well for revenue growth. Also, estimates have been mostly stable lately ahead of Pool’s third quarter earnings release. Moreover, the company has positive record of earnings surprises in recent quarters. However, seasonality of the company’s business and macroeconomic headwinds raise caution.”
POOL has been the subject of a number of other research reports. Johnson Rice lowered Pool Corp. from a “buy” rating to an “accumulate” rating in a research report on Friday, July 15th. Robert W. Baird began coverage on Pool Corp. in a research report on Monday, June 6th. They set an “outperform” rating for the company. Finally, Wedbush began coverage on Pool Corp. in a research report on Wednesday, August 24th. They set an “outperform” rating and a $115.00 price target for the company. Four analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. The company has a consensus rating of “Buy” and a consensus price target of $97.80.
Pool Corp. (NASDAQ:POOL) opened at 94.94 on Wednesday. The company has a market cap of $3.99 billion, a price-to-earnings ratio of 28.85 and a beta of 0.81. Pool Corp. has a 12-month low of $71.10 and a 12-month high of $102.86. The stock has a 50 day moving average price of $98.69 and a 200-day moving average price of $92.73.
Pool Corp. (NASDAQ:POOL) last released its earnings results on Thursday, July 21st. The company reported $1.98 earnings per share for the quarter, beating analysts’ consensus estimates of $1.93 by $0.05. Pool Corp. had a return on equity of 57.51% and a net margin of 5.76%. The company earned $918.90 million during the quarter, compared to analyst estimates of $904.82 million. During the same quarter in the previous year, the company posted $1.75 EPS. Pool Corp.’s revenue for the quarter was up 7.9% on a year-over-year basis. On average, analysts predict that Pool Corp. will post $3.43 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Wednesday, August 24th. Shareholders of record on Wednesday, August 10th were issued a dividend of $0.31 per share. This is an increase from Pool Corp.’s previous quarterly dividend of $0.26. The ex-dividend date was Monday, August 8th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.31%. Pool Corp.’s dividend payout ratio is 37.35%.
In other Pool Corp. news, insider Hart Melanie Housey sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, August 1st. The stock was sold at an average price of $102.31, for a total transaction of $204,620.00. Following the transaction, the insider now owns 9,290 shares in the company, valued at approximately $950,459.90. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO De La Mesa Manuel J. Perez sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, July 25th. The stock was sold at an average price of $100.70, for a total value of $3,021,000.00. Following the transaction, the chief executive officer now owns 72,511 shares in the company, valued at approximately $7,301,857.70. The disclosure for this sale can be found here. Company insiders own 8.00% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of POOL. GW&K Investment Management LLC increased its position in Pool Corp. by 84.1% in the first quarter. GW&K Investment Management LLC now owns 62,176 shares of the company’s stock worth $5,455,000 after buying an additional 28,399 shares during the period. Riverhead Capital Management LLC increased its stake in Pool Corp. by 13.3% in the first quarter. Riverhead Capital Management LLC now owns 8,272 shares of the company’s stock valued at $726,000 after buying an additional 972 shares during the last quarter. BNP Paribas Arbitrage SA increased its stake in Pool Corp. by 53,036.4% in the second quarter. BNP Paribas Arbitrage SA now owns 17,535 shares of the company’s stock valued at $1,649,000 after buying an additional 17,502 shares during the last quarter. UBS Group AG increased its stake in Pool Corp. by 37.0% in the first quarter. UBS Group AG now owns 12,993 shares of the company’s stock valued at $1,140,000 after buying an additional 3,508 shares during the last quarter. Finally, Emerald Acquisition Ltd. bought a new stake in Pool Corp. during the second quarter valued at $15,123,000. Hedge funds and other institutional investors own 92.20% of the company’s stock.
Pool Corp. Company Profile
Pool Corporation is a distributor of swimming pool supplies, equipment and related leisure products. The Company is also a distributor of irrigation and landscape products in the United States. The Company operates over 340 sales centers in North America, Europe, South America and Australia through its over four distribution networks, such as SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon) and National Pool Tile (NPT).
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