A. O. Smith (NYSE:AOS) Given New $70.00 Price Target at Stifel Nicolaus

A. O. Smith (NYSE:AOS) had its price objective lowered by Stifel Nicolaus from $76.00 to $70.00 in a research note released on Friday morning, MarketBeat Ratings reports. The brokerage currently has a buy rating on the industrial products company’s stock.

Several other equities analysts have also issued reports on AOS. DA Davidson set a $67.00 price objective on shares of A. O. Smith and gave the company a “neutral” rating in a report on Monday, May 4th. JPMorgan Chase & Co. reaffirmed an “underweight” rating and set a $60.00 target price (down from $65.00) on shares of A. O. Smith in a research report on Friday, May 15th. The Goldman Sachs Group cut their price target on A. O. Smith from $69.00 to $61.00 and set a “sell” rating on the stock in a report on Monday, April 13th. Weiss Ratings downgraded A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 27th. Finally, Oppenheimer set a $75.00 target price on A. O. Smith and gave the company an “outperform” rating in a research note on Wednesday, June 10th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $67.75.

A. O. Smith Stock Performance

AOS stock opened at $60.31 on Friday. A. O. Smith has a 1-year low of $54.16 and a 1-year high of $81.86. The business has a 50-day moving average price of $59.56 and a 200 day moving average price of $65.39. The company has a market capitalization of $8.31 billion, a P/E ratio of 16.75, a PEG ratio of 1.33 and a beta of 1.16. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.59 and a quick ratio of 1.00.

A. O. Smith (NYSE:AOS) last issued its earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.07. The company had revenue of $1 billion for the quarter, compared to analysts’ expectations of $994.89 million. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The firm’s quarterly revenue was down .7% on a year-over-year basis. During the same period in the prior year, the business earned $1.07 EPS. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. As a group, equities research analysts forecast that A. O. Smith will post 3.74 EPS for the current fiscal year.

A. O. Smith Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, July 31st. A. O. Smith’s dividend payout ratio is 38.30%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in A. O. Smith by 4.7% during the 4th quarter. Vanguard Group Inc. now owns 15,096,018 shares of the industrial products company’s stock worth $1,009,622,000 after purchasing an additional 683,176 shares during the period. State Street Corp lifted its holdings in shares of A. O. Smith by 8.4% in the 4th quarter. State Street Corp now owns 5,911,495 shares of the industrial products company’s stock valued at $395,361,000 after buying an additional 458,257 shares during the period. Invesco Ltd. lifted its holdings in shares of A. O. Smith by 0.8% in the 4th quarter. Invesco Ltd. now owns 4,559,612 shares of the industrial products company’s stock valued at $304,947,000 after buying an additional 37,621 shares during the period. Morgan Stanley boosted its stake in shares of A. O. Smith by 3.6% in the fourth quarter. Morgan Stanley now owns 2,909,395 shares of the industrial products company’s stock worth $194,581,000 after buying an additional 101,453 shares during the last quarter. Finally, ProShare Advisors LLC grew its holdings in A. O. Smith by 2.6% during the fourth quarter. ProShare Advisors LLC now owns 2,344,631 shares of the industrial products company’s stock worth $156,809,000 after acquiring an additional 60,260 shares during the period. 76.10% of the stock is currently owned by institutional investors and hedge funds.

More A. O. Smith News

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported adjusted EPS of $1.03, above the $0.96 consensus estimate, while sales of approximately $1.0 billion also topped forecasts. North America sales rose 5% to $820.5 million, supported by the Leonard Valve acquisition, 21% boiler sales growth and pricing actions. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: Cash generation and shareholder returns improved. Year-to-date operating cash flow increased 42% to $254 million, free cash flow climbed 67% to $233 million, and the company raised its 2026 share-repurchase target to $300 million. A. O. Smith also declared a quarterly dividend of $0.36 per share. A. O. Smith Q2 Sales Report
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. Management reiterated adjusted EPS guidance of $3.70 to $3.85 and sales growth of 2% to 3%; the midpoint is close to the analyst consensus. The company’s earnings beat and boiler momentum provide support, but the outlook does not represent a major upward revision. A. O. Smith Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: International weakness and costs remain concerns. Rest of World sales fell 19%, primarily because of continued weakness in China’s consumer-appliance market. Quarterly revenue declined slightly year over year, adjusted EPS was below the prior-year result, and higher input costs pressured profitability. A. O. Smith Q2 Earnings Beat Estimates
• Negative Sentiment: Analysts lowered their valuation targets. Citigroup cut its target to $64 from $65 and kept a neutral rating, while Stifel reduced its target to $70 from $76 but maintained a buy rating. The reductions may limit upside sentiment despite both targets remaining above the recent trading level. Analyst Price Target Changes

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.