A. O. Smith (NYSE:AOS) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research cut shares of A. O. Smith (NYSE:AOS) from a hold rating to a strong sell rating in a research report released on Wednesday,Zacks.com reports.

Several other research firms have also issued reports on AOS. Stifel Nicolaus set a $75.00 target price on shares of A. O. Smith in a report on Friday, May 1st. JPMorgan Chase & Co. reduced their price target on shares of A. O. Smith from $75.00 to $65.00 and set a “neutral” rating on the stock in a research note on Friday, May 1st. DA Davidson set a $67.00 price target on shares of A. O. Smith and gave the stock a “neutral” rating in a research note on Monday. Jefferies Financial Group set a $75.00 price target on shares of A. O. Smith and gave the stock a “hold” rating in a research note on Friday, January 9th. Finally, Wall Street Zen downgraded shares of A. O. Smith from a “buy” rating to a “hold” rating in a research note on Saturday, February 14th. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $70.44.

A. O. Smith Price Performance

AOS stock opened at $60.18 on Wednesday. A. O. Smith has a 52 week low of $58.22 and a 52 week high of $81.86. The company has a quick ratio of 1.00, a current ratio of 1.56 and a debt-to-equity ratio of 0.31. The company has a fifty day simple moving average of $66.64 and a two-hundred day simple moving average of $68.77. The firm has a market capitalization of $8.32 billion, a P/E ratio of 16.00, a price-to-earnings-growth ratio of 1.35 and a beta of 1.23.

A. O. Smith (NYSE:AOS) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $0.85 EPS for the quarter, missing the consensus estimate of $0.94 by ($0.09). A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The business had revenue of $945.60 million for the quarter, compared to the consensus estimate of $974.06 million. During the same quarter last year, the business earned $0.95 EPS. A. O. Smith’s revenue for the quarter was down 1.9% compared to the same quarter last year. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. Analysts anticipate that A. O. Smith will post 3.78 earnings per share for the current fiscal year.

A. O. Smith Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be issued a $0.36 dividend. The ex-dividend date is Thursday, April 30th. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. A. O. Smith’s payout ratio is currently 38.30%.

Insider Activity at A. O. Smith

In other news, SVP Darrell W. Schuh sold 1,104 shares of the business’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $74.39, for a total value of $82,126.56. Following the completion of the sale, the senior vice president owned 2,201 shares in the company, valued at approximately $163,732.39. The trade was a 33.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On A. O. Smith

Several large investors have recently modified their holdings of AOS. Goldman Sachs Group Inc. raised its holdings in shares of A. O. Smith by 19.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 939,302 shares of the industrial products company’s stock valued at $61,393,000 after purchasing an additional 154,201 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in shares of A. O. Smith by 78.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company’s stock worth $63,000 after buying an additional 422 shares during the last quarter. Marshall Wace LLP purchased a new position in shares of A. O. Smith in the 2nd quarter worth approximately $5,212,000. California Public Employees Retirement System grew its position in shares of A. O. Smith by 11.4% in the 2nd quarter. California Public Employees Retirement System now owns 211,176 shares of the industrial products company’s stock worth $13,847,000 after buying an additional 21,657 shares during the last quarter. Finally, Bank of Nova Scotia grew its position in shares of A. O. Smith by 165.3% in the 2nd quarter. Bank of Nova Scotia now owns 32,874 shares of the industrial products company’s stock worth $2,156,000 after buying an additional 20,485 shares during the last quarter. Institutional investors own 76.10% of the company’s stock.

About A. O. Smith

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.