Boenning Scattergood Reaffirms Buy Rating for A. O. Smith (AOS)
Boenning Scattergood reiterated their buy rating on shares of A. O. Smith (NYSE:AOS) in a report published on Tuesday. Boenning Scattergood also issued estimates for A. O. Smith’s Q1 2019 earnings at $0.62 EPS, Q2 2019 earnings at $0.70 EPS, Q3 2019 earnings at $0.65 EPS, Q4 2019 earnings at $0.75 EPS and FY2019 earnings at $2.72 EPS.
“We maintain our Outperform rating for AOS, which has essentially morphed from a growth stock to a value stock over the last 12 months. Our $54 target (down from $60) reflects a P/E of 19.7 times, a 20% discount to the water infrastructure peer group average of 24.7 times. Also, of note in gauging reward/risk, AOS represents a call option on a potential U.S./China trade deal.”,” Boenning Scattergood’s analyst commented.
AOS has been the topic of a number of other reports. Goldman Sachs Group started coverage on A. O. Smith in a research report on Tuesday, October 2nd. They set a sell rating and a $50.00 target price on the stock. Zacks Investment Research raised A. O. Smith from a sell rating to a hold rating in a research report on Wednesday, November 21st. ValuEngine upgraded shares of A. O. Smith from a sell rating to a hold rating in a research note on Wednesday, December 26th. Stephens initiated coverage on shares of A. O. Smith in a research note on Monday, November 19th. They set an equal weight rating and a $50.00 price target for the company. Finally, BMO Capital Markets cut their price target on shares of A. O. Smith from $73.00 to $66.00 and set an outperform rating for the company in a research note on Wednesday, October 31st. Three analysts have rated the stock with a sell rating, four have issued a hold rating and four have assigned a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $62.56.
A. O. Smith (NYSE:AOS) last released its earnings results on Tuesday, January 29th. The industrial products company reported $0.74 earnings per share for the quarter, topping analysts’ consensus estimates of $0.71 by $0.03. A. O. Smith had a return on equity of 26.00% and a net margin of 13.93%. The business had revenue of $812.50 million for the quarter, compared to the consensus estimate of $821.35 million. During the same period last year, the business earned $0.60 earnings per share. The firm’s revenue for the quarter was up 5.7% compared to the same quarter last year. On average, sell-side analysts predict that A. O. Smith will post 2.73 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, February 15th. Shareholders of record on Thursday, January 31st will be paid a dividend of $0.22 per share. This represents a $0.88 dividend on an annualized basis and a yield of 1.84%. The ex-dividend date of this dividend is Wednesday, January 30th. A. O. Smith’s dividend payout ratio is 33.72%.
In other news, Director Paul W. Jones sold 9,000 shares of A. O. Smith stock in a transaction that occurred on Tuesday, November 13th. The shares were sold at an average price of $45.99, for a total value of $413,910.00. Following the completion of the transaction, the director now owns 200,967 shares in the company, valued at $9,242,472.33. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 1.28% of the company’s stock.
Several large investors have recently bought and sold shares of the company. Benjamin F. Edwards & Company Inc. raised its stake in shares of A. O. Smith by 93.4% in the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 3,867 shares of the industrial products company’s stock valued at $165,000 after acquiring an additional 1,867 shares during the last quarter. Kornitzer Capital Management Inc. KS raised its stake in shares of A. O. Smith by 5.2% in the fourth quarter. Kornitzer Capital Management Inc. KS now owns 490,700 shares of the industrial products company’s stock valued at $20,953,000 after acquiring an additional 24,035 shares during the last quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund raised its stake in shares of A. O. Smith by 21.1% in the fourth quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 64,300 shares of the industrial products company’s stock valued at $2,746,000 after acquiring an additional 11,200 shares during the last quarter. Oppenheimer & Co. Inc. bought a new position in shares of A. O. Smith in the fourth quarter valued at approximately $1,755,000. Finally, Cim LLC raised its stake in shares of A. O. Smith by 34.2% in the fourth quarter. Cim LLC now owns 11,638 shares of the industrial products company’s stock valued at $497,000 after acquiring an additional 2,965 shares during the last quarter. Institutional investors own 76.72% of the company’s stock.
About A. O. Smith
A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; residential and commercial boilers for use in space heating applications for hospitals, schools, hotels, and other large commercial buildings; and water treatment products, including on-the-go filtration bottles, point-of-use carbon and reverse osmosis products, point-of-entry water softeners, and whole-home water filtrations products for residences, restaurants, hotels, and offices.
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