A. O. Smith (NYSE:AOS) Raised to “Hold” at ValuEngine

ValuEngine upgraded shares of A. O. Smith (NYSE:AOS) from a sell rating to a hold rating in a research note published on Friday morning, ValuEngine reports.

A number of other research analysts have also recently weighed in on AOS. Boenning Scattergood cut A. O. Smith from an outperform rating to a neutral rating and set a $52.98 price objective on the stock. in a research report on Wednesday, May 1st. Edward Jones cut A. O. Smith from a buy rating to a hold rating in a report on Monday, May 20th. Zacks Investment Research cut A. O. Smith from a hold rating to a sell rating and set a $48.00 price target on the stock. in a report on Wednesday, June 26th. TheStreet cut A. O. Smith from a b- rating to a c+ rating in a report on Monday, August 5th. Finally, DA Davidson lowered their price target on A. O. Smith to $58.00 and set a buy rating on the stock in a report on Friday, June 7th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company. A. O. Smith has a consensus rating of Hold and an average target price of $54.25.

AOS stock opened at $46.27 on Friday. A. O. Smith has a twelve month low of $40.34 and a twelve month high of $61.08. The company has a quick ratio of 1.74, a current ratio of 2.19 and a debt-to-equity ratio of 0.23. The stock has a market cap of $7.58 billion, a P/E ratio of 18.51, a PEG ratio of 2.22 and a beta of 1.54. The business’s 50-day moving average price is $45.22 and its 200-day moving average price is $48.80.

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

A. O. Smith declared that its board has approved a share buyback program on Monday, June 3rd that allows the company to repurchase $300.00 million in outstanding shares. This repurchase authorization allows the industrial products company to repurchase up to 4.3% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 15th. Investors of record on Wednesday, July 31st were issued a $0.22 dividend. The ex-dividend date was Tuesday, July 30th. This represents a $0.88 dividend on an annualized basis and a yield of 1.90%. A. O. Smith’s dividend payout ratio is presently 33.72%.

A number of hedge funds and other institutional investors have recently bought and sold shares of AOS. Dupont Capital Management Corp raised its holdings in shares of A. O. Smith by 13.4% during the 2nd quarter. Dupont Capital Management Corp now owns 473,388 shares of the industrial products company’s stock worth $22,325,000 after acquiring an additional 56,085 shares in the last quarter. DNB Asset Management AS raised its holdings in shares of A. O. Smith by 3.6% during the 2nd quarter. DNB Asset Management AS now owns 28,768 shares of the industrial products company’s stock worth $1,357,000 after acquiring an additional 995 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its holdings in shares of A. O. Smith by 431.5% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 127,550 shares of the industrial products company’s stock worth $6,801,000 after acquiring an additional 103,550 shares in the last quarter. National Asset Management Inc. purchased a new stake in shares of A. O. Smith during the 1st quarter worth approximately $388,000. Finally, FIL Ltd raised its holdings in shares of A. O. Smith by 55.9% during the 1st quarter. FIL Ltd now owns 18,708 shares of the industrial products company’s stock worth $998,000 after acquiring an additional 6,708 shares in the last quarter. 75.44% of the stock is currently owned by institutional investors.

About A. O. Smith

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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