A. O. Smith Corp (NYSE:AOS) Receives $54.25 Consensus Target Price from Analysts

Shares of A. O. Smith Corp (NYSE:AOS) have received a consensus recommendation of “Hold” from the twelve research firms that are covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, six have assigned a hold recommendation and three have given a buy recommendation to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $54.25.

Several research analysts have commented on the company. DA Davidson reduced their price objective on A. O. Smith to $58.00 and set a “buy” rating on the stock in a report on Friday, June 7th. ValuEngine cut A. O. Smith from a “hold” rating to a “sell” rating in a research report on Tuesday, May 14th. Jefferies Financial Group assumed coverage on A. O. Smith in a research report on Wednesday, July 10th. They set a “hold” rating on the stock. Robert W. Baird increased their target price on A. O. Smith from $56.00 to $62.00 and gave the company an “outperform” rating in a research report on Wednesday, April 10th. Finally, Zacks Investment Research cut A. O. Smith from a “hold” rating to a “sell” rating and set a $48.00 target price on the stock. in a research report on Wednesday, June 26th.

AOS traded up $1.25 during trading on Tuesday, hitting $44.90. 2,357,323 shares of the stock were exchanged, compared to its average volume of 1,844,881. The stock has a 50 day moving average price of $45.29. The firm has a market capitalization of $7.34 billion, a price-to-earnings ratio of 17.20, a price-to-earnings-growth ratio of 2.11 and a beta of 1.54. A. O. Smith has a 1 year low of $40.34 and a 1 year high of $61.08. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.74 and a current ratio of 2.19.

A. O. Smith (NYSE:AOS) last released its quarterly earnings data on Tuesday, July 30th. The industrial products company reported $0.61 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.03). The firm had revenue of $765.40 million for the quarter, compared to analysts’ expectations of $812.29 million. A. O. Smith had a return on equity of 24.31% and a net margin of 13.71%. The company’s revenue for the quarter was down 8.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.61 earnings per share. As a group, equities analysts forecast that A. O. Smith will post 2.38 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Shareholders of record on Wednesday, July 31st will be given a dividend of $0.22 per share. The ex-dividend date of this dividend is Tuesday, July 30th. This represents a $0.88 annualized dividend and a yield of 1.96%. A. O. Smith’s dividend payout ratio (DPR) is presently 33.72%.

A. O. Smith announced that its Board of Directors has initiated a stock repurchase plan on Monday, June 3rd that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the industrial products company to reacquire up to 4.3% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its shares are undervalued.

In other A. O. Smith news, Director Paul W. Jones sold 1,000 shares of the stock in a transaction on Thursday, May 9th. The stock was sold at an average price of $49.50, for a total transaction of $49,500.00. Following the sale, the director now owns 182,266 shares of the company’s stock, valued at approximately $9,022,167. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.03% of the stock is currently owned by company insiders.

Institutional investors have recently bought and sold shares of the company. Mawer Investment Management Ltd. purchased a new position in shares of A. O. Smith during the 2nd quarter valued at about $32,982,000. ACG Wealth raised its stake in shares of A. O. Smith by 4.5% during the 2nd quarter. ACG Wealth now owns 78,876 shares of the industrial products company’s stock valued at $3,720,000 after buying an additional 3,361 shares during the last quarter. Parkside Financial Bank & Trust raised its stake in shares of A. O. Smith by 105.5% during the 2nd quarter. Parkside Financial Bank & Trust now owns 2,010 shares of the industrial products company’s stock valued at $95,000 after buying an additional 1,032 shares during the last quarter. Great Lakes Advisors LLC raised its stake in shares of A. O. Smith by 1.7% during the 2nd quarter. Great Lakes Advisors LLC now owns 321,377 shares of the industrial products company’s stock valued at $15,156,000 after buying an additional 5,375 shares during the last quarter. Finally, Teacher Retirement System of Texas purchased a new position in shares of A. O. Smith during the 2nd quarter valued at about $2,677,000. 75.55% of the stock is owned by hedge funds and other institutional investors.

A. O. Smith Company Profile

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for space heating applications in hospitals, schools, hotels, and other commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtration products for residences, restaurants, hotels, and offices.

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Analyst Recommendations for A. O. Smith (NYSE:AOS)

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