Royal Bank of Canada Cuts Stake in A. O. Smith Corporation $AOS

Royal Bank of Canada lowered its stake in shares of A. O. Smith Corporation (NYSE:AOS) by 13.3% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 770,141 shares of the industrial products company’s stock after selling 117,745 shares during the quarter. Royal Bank of Canada’s holdings in A. O. Smith were worth $50,784,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the stock. Creative Financial Designs Inc. ADV raised its position in A. O. Smith by 3,481.8% in the fourth quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company’s stock worth $26,000 after acquiring an additional 383 shares during the period. Torren Management LLC bought a new position in shares of A. O. Smith during the 4th quarter valued at approximately $31,000. Eagle Bay Advisors LLC bought a new position in shares of A. O. Smith during the 4th quarter valued at approximately $32,000. Larson Financial Group LLC increased its stake in shares of A. O. Smith by 67.9% during the 3rd quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company’s stock worth $36,000 after purchasing an additional 197 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of A. O. Smith during the 4th quarter worth approximately $35,000. Hedge funds and other institutional investors own 76.10% of the company’s stock.

A. O. Smith Stock Performance

Shares of AOS opened at $60.31 on Monday. A. O. Smith Corporation has a 12-month low of $54.16 and a 12-month high of $81.86. The company has a current ratio of 1.59, a quick ratio of 1.04 and a debt-to-equity ratio of 0.32. The company has a market cap of $8.31 billion, a PE ratio of 16.75, a price-to-earnings-growth ratio of 1.34 and a beta of 1.16. The stock has a 50-day moving average price of $59.56 and a 200-day moving average price of $65.35.

A. O. Smith (NYSE:AOS) last posted its quarterly earnings data on Thursday, July 30th. The industrial products company reported $1.03 earnings per share 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%. A. O. Smith’s revenue for the quarter was down .7% compared to the same quarter last year. During the same period in the prior year, the business earned $1.07 earnings per share. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. As a group, equities analysts forecast that A. O. Smith Corporation will post 3.75 earnings per share for the current fiscal year.

A. O. Smith Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Friday, July 31st will be paid a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, July 31st. A. O. Smith’s payout ratio is currently 40.00%.

Analyst Ratings Changes

A number of analysts have issued reports on AOS shares. JPMorgan Chase & Co. restated an “underweight” rating and issued a $60.00 target price (down from $65.00) on shares of A. O. Smith in a research note on Friday, May 15th. Oppenheimer set a $75.00 price target on A. O. Smith and gave the stock an “outperform” rating in a research note on Wednesday, June 10th. Citigroup cut their price target on A. O. Smith from $65.00 to $64.00 and set a “neutral” rating for the company in a research note on Friday. Weiss Ratings downgraded shares of A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday, May 27th. Finally, Stifel Nicolaus cut their target price on shares of A. O. Smith from $76.00 to $70.00 and set a “buy” rating for the company in a research report on Friday. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and a consensus price target of $67.75.

A. O. Smith News Roundup

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

A. O. Smith Company Profile

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.