Pool (NASDAQ:POOL) Sets New 52-Week Low – What’s Next?

Pool Corporation (NASDAQ:POOL) reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $172.68 and last traded at $177.7580, with a volume of 102739 shares trading hands. The stock had previously closed at $175.35.

Key Headlines Impacting Pool

Here are the key news stories impacting Pool this week:

• Positive Sentiment: A Pool Corporation director disclosed a large insider purchase worth about $1.76 million, which can signal management or board confidence in the company’s outlook. Insider Buying: Pool (NASDAQ:POOL) Director Purchases $1,759,500.00 in Stock
• Positive Sentiment: Market commentary highlighted consumer-driven companies using large share buybacks, a trend that can support investor sentiment around the sector and capital-return names like Pool Corporation. Consumer-Driven Stocks Boost Buybacks, Including Visa’s $20B Plan (POOL)
• Neutral Sentiment: A separate article on Berkshire Hathaway portfolio changes mentioned POOL in passing, but it does not appear to be a direct business catalyst for Pool Corporation. Willing and Abel: Berkshire’s New CEO Makes Huge Portfolio Changes in Q1 (POOL)

Wall Street Analysts Forecast Growth

Several analysts have issued reports on POOL shares. Bank of America cut their price target on shares of Pool from $229.00 to $226.00 and set an “underperform” rating for the company in a research report on Monday, April 20th. Zacks Research upgraded shares of Pool from a “strong sell” rating to a “hold” rating in a report on Monday, April 27th. Weiss Ratings lowered shares of Pool from a “hold (c-)” rating to a “sell (d+)” rating in a report on Thursday. Deutsche Bank Aktiengesellschaft set a $246.00 target price on shares of Pool in a report on Friday, February 20th. Finally, Robert W. Baird dropped their target price on shares of Pool from $320.00 to $300.00 and set an “outperform” rating for the company in a report on Friday, February 20th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $261.38.

Pool Trading Up 2.8%

The company has a market capitalization of $6.57 billion, a P/E ratio of 16.52, a P/E/G ratio of 2.22 and a beta of 1.16. The stock’s 50 day moving average is $207.13 and its 200-day moving average is $232.64. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.87 and a quick ratio of 0.55.

Pool (NASDAQ:POOL) last released its quarterly earnings results on Thursday, April 23rd. The specialty retailer reported $1.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.34 by $0.09. Pool had a net margin of 7.57% and a return on equity of 32.37%. The company had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.82 billion. During the same period in the prior year, the firm earned $1.32 earnings per share. Pool’s revenue was up 6.2% on a year-over-year basis. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. As a group, equities research analysts anticipate that Pool Corporation will post 11.08 earnings per share for the current year.

Pool Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Thursday, May 14th will be paid a dividend of $1.30 per share. This is a positive change from Pool’s previous quarterly dividend of $1.25. This represents a $5.20 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend is Thursday, May 14th. Pool’s payout ratio is 47.84%.

Pool declared that its Board of Directors has authorized a share buyback plan on Wednesday, April 29th that allows the company to buyback $600.00 million in shares. This buyback authorization allows the specialty retailer to buy up to 7.8% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Pool

In other Pool news, CFO Melanie M. Hart sold 2,750 shares of the firm’s stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $220.00, for a total transaction of $605,000.00. Following the completion of the transaction, the chief financial officer owned 18,039 shares of the company’s stock, valued at approximately $3,968,580. This trade represents a 13.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director De La Mesa Manuel J. Perez bought 10,000 shares of the firm’s stock in a transaction on Wednesday, May 13th. The shares were acquired at an average cost of $175.95 per share, with a total value of $1,759,500.00. Following the purchase, the director directly owned 40,108 shares of the company’s stock, valued at approximately $7,057,002.60. This represents a 33.21% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have purchased 32,549 shares of company stock valued at $6,283,552. 3.00% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Pool

A number of institutional investors and hedge funds have recently made changes to their positions in POOL. T. Rowe Price Investment Management Inc. increased its stake in shares of Pool by 3,831.9% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,001,987 shares of the specialty retailer’s stock valued at $457,955,000 after purchasing an additional 1,951,070 shares in the last quarter. Norges Bank bought a new stake in shares of Pool during the fourth quarter valued at approximately $97,612,000. Wellington Management Group LLP increased its position in shares of Pool by 16.2% during the third quarter. Wellington Management Group LLP now owns 2,563,373 shares of the specialty retailer’s stock valued at $794,825,000 after acquiring an additional 357,643 shares in the last quarter. Southpoint Capital Advisors LP bought a new stake in shares of Pool during the fourth quarter valued at approximately $68,625,000. Finally, Adage Capital Partners GP L.L.C. increased its position in shares of Pool by 254.6% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 339,716 shares of the specialty retailer’s stock valued at $77,710,000 after acquiring an additional 243,907 shares in the last quarter. Institutional investors own 98.99% of the company’s stock.

About Pool

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation’s extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company’s product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.