Jefferies Financial Group began coverage on shares of A. O. Smith (NYSE:AOS) in a research report report published on Wednesday, The Fly reports. The firm issued a hold rating on the industrial products company’s stock. Jefferies Financial Group also issued estimates for A. O. Smith’s Q2 2019 earnings at $0.64 EPS, Q3 2019 earnings at $0.72 EPS, Q4 2019 earnings at $0.77 EPS, FY2019 earnings at $2.66 EPS, Q1 2020 earnings at $0.60 EPS, Q2 2020 earnings at $0.67 EPS, Q3 2020 earnings at $0.75 EPS, Q4 2020 earnings at $0.80 EPS, FY2020 earnings at $2.82 EPS, Q1 2021 earnings at $0.61 EPS, Q2 2021 earnings at $0.69 EPS, FY2021 earnings at $2.87 EPS and FY2022 earnings at $2.93 EPS.
A number of other equities research analysts have also weighed in on the company. Zacks Investment Research lowered Hancock Jaffe Laboratories from a buy rating to a hold rating in a research note on Wednesday, June 26th. Edward Jones lowered A. O. Smith from a buy rating to a hold rating in a research note on Monday, May 20th. ValuEngine lowered Xylem from a buy rating to a hold rating in a research note on Tuesday, May 14th. KeyCorp boosted their price target on Stitch Fix from $38.00 to $40.00 and gave the stock an overweight rating in a research note on Tuesday, March 12th. Finally, Boenning Scattergood restated a hold rating on shares of Peoples Bancorp in a research note on Wednesday, May 1st. Three analysts have rated the stock with a sell rating, six have assigned a hold rating and four have issued a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus price target of $56.11.
Shares of AOS stock opened at $45.19 on Wednesday. A. O. Smith has a fifty-two week low of $40.34 and a fifty-two week high of $61.08. The stock has a market capitalization of $7.41 billion, a price-to-earnings ratio of 17.31, a price-to-earnings-growth ratio of 1.90 and a beta of 1.56. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.25 and a quick ratio of 1.82. The business’s 50-day simple moving average is $44.78.
A. O. Smith announced that its board has approved a share buyback program on Monday, June 3rd that permits the company to buyback $300.00 million in shares. This buyback authorization permits the industrial products company to buy up to 4.3% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its stock is undervalued.
The company also recently announced a quarterly dividend, which will be paid on Thursday, August 15th. Investors of record on Wednesday, July 31st will be issued a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a dividend yield of 1.95%. The ex-dividend date of this dividend is Tuesday, July 30th. A. O. Smith’s dividend payout ratio (DPR) is 33.72%.
In related news, VP Paul R. Dana sold 9,010 shares of A. O. Smith stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $52.76, for a total transaction of $475,367.60. Following the completion of the sale, the vice president now owns 14,912 shares of the company’s stock, valued at $786,757.12. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Paul W. Jones sold 1,000 shares of A. O. Smith stock in a transaction dated Thursday, May 9th. The stock was sold at an average price of $49.50, for a total value of $49,500.00. Following the sale, the director now directly owns 182,266 shares of the company’s stock, valued at approximately $9,022,167. The disclosure for this sale can be found here. Insiders have sold 18,010 shares of company stock valued at $944,468 in the last ninety days. Corporate insiders own 1.03% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in A. O. Smith in the fourth quarter valued at approximately $122,493,000. Two Sigma Investments LP lifted its holdings in A. O. Smith by 432.1% in the fourth quarter. Two Sigma Investments LP now owns 2,075,448 shares of the industrial products company’s stock valued at $88,622,000 after acquiring an additional 1,685,430 shares during the period. Two Sigma Advisers LP lifted its holdings in A. O. Smith by 676.5% in the fourth quarter. Two Sigma Advisers LP now owns 1,910,897 shares of the industrial products company’s stock valued at $81,595,000 after acquiring an additional 1,664,800 shares during the period. Impax Asset Management Group plc lifted its holdings in A. O. Smith by 51.1% in the fourth quarter. Impax Asset Management Group plc now owns 4,283,691 shares of the industrial products company’s stock valued at $182,914,000 after acquiring an additional 1,448,313 shares during the period. Finally, Fiera Capital Corp acquired a new position in A. O. Smith in the first quarter valued at approximately $39,544,000. 75.08% 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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