Zacks Investment Research Upgrades Pool Co. (POOL) to Buy
Pool Co. (NASDAQ:POOL) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday. The brokerage currently has a $133.00 target price on the specialty retailer’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 11.65% from the company’s previous close.
According to Zacks, “Pool Corp.’s shares outperformed the Zacks categorized Leisure & Recreation Products industry over the past one year. In fact, the first-quarter 2017 marked the 28th consecutive quarter of year-over-year growth for Pool in sales, gross profit and operating earnings. Notably, the company should continue to benefit in the near term from base business sales growth and favorable trends in the housing market. Additionally, continuous strong growth in the remodel and replacement sectors of its business is a major positive. Further, stronger consumer discretionary spending along with a tight supply situation, point to consistently robust demand for 2017. The company’s leading market share position and opportunistic expansion strategies position it well for revenue growth. However, seasonality of the company’s business and macroeconomic headwinds owing to large global presence raise concern.”
POOL has been the topic of several other research reports. Wedbush reaffirmed an “outperform” rating and issued a $128.00 price target (up previously from $120.00) on shares of Pool in a research report on Monday, February 27th. Robert W. Baird raised shares of Pool from a “neutral” rating to an “outperform” rating and lifted their price objective for the stock from $103.00 to $130.00 in a report on Friday, February 17th.
Shares of Pool (NASDAQ:POOL) traded up 1.02% during trading on Thursday, hitting $120.34. The stock had a trading volume of 32,607 shares. The stock has a market capitalization of $4.97 billion, a P/E ratio of 33.29 and a beta of 0.88. The stock’s 50-day moving average is $119.68 and its 200-day moving average is $111.43. Pool has a 12-month low of $87.02 and a 12-month high of $123.13.
Pool (NASDAQ:POOL) last issued its quarterly earnings results on Thursday, April 20th. The specialty retailer reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.12. The business had revenue of $546.44 million during the quarter. Pool had a return on equity of 59.21% and a net margin of 5.86%. The company’s quarterly revenue was up 6.0% on a year-over-year basis. During the same quarter last year, the firm posted $0.38 earnings per share. Analysts predict that Pool will post $4.25 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 31st. Shareholders of record on Wednesday, May 17th will be issued a dividend of $0.37 per share. This is a boost from Pool’s previous quarterly dividend of $0.31. This represents a $1.48 dividend on an annualized basis and a yield of 1.24%. The ex-dividend date of this dividend is Monday, May 15th. Pool’s dividend payout ratio is currently 35.94%.
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In related news, CEO De La Mesa Manuel J. Perez sold 12,372 shares of the company’s stock in a transaction on Wednesday, May 10th. The shares were sold at an average price of $122.12, for a total transaction of $1,510,868.64. Following the completion of the transaction, the chief executive officer now owns 51,953 shares in the company, valued at $6,344,500.36. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO De La Mesa Manuel J. Perez sold 8,500 shares of the company’s stock in a transaction on Friday, February 24th. The stock was sold at an average price of $116.01, for a total transaction of $986,085.00. Following the transaction, the chief executive officer now owns 51,076 shares of the company’s stock, valued at approximately $5,925,326.76. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 146,884 shares of company stock valued at $17,419,852. 8.00% of the stock is owned by corporate insiders.
Several institutional investors have recently modified their holdings of POOL. TrimTabs Asset Management LLC bought a new position in shares of Pool during the first quarter worth $124,000. FNY Partners Fund LP acquired a new position in Pool during the first quarter valued at approximately $126,000. FCG Advisors LLC acquired a new position in Pool during the first quarter valued at approximately $214,000. Sawtooth Solutions LLC acquired a new position in Pool during the first quarter valued at approximately $227,000. Finally, Jane Street Group LLC acquired a new position in Pool during the first quarter valued at approximately $228,000. Hedge funds and other institutional investors own 91.32% of the company’s stock.
Pool Corporation is a distributor of swimming pool supplies, equipment and related leisure products. The Company is a distributor of irrigation and landscape products in the United States. As of December 31, 2016, the Company operated 344 sales centers in North America, Europe, South America and Australia, through its four distribution networks, including SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon) and National Pool Tile (NPT).
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