Fort L.P., an institutional investor, recently reduced its holdings in shares of A. O. Smith Co. (NYSE: AOS) by 41.9% during the first quarter of this year, according to a 13F filing with the Securities and Exchange Commission (SEC). As of its most recent filing, Fort L.P.’s ownership amounted to 3,258 shares, down from 5,606 shares following the sale of 2,348 shares during the reporting period. The total value of Fort L.P.’s holdings in A. O. Smith at that time was $225,000.
A.O. Smith is an industrial products company that has shown promising financial performance in recent times. In its last quarterly earnings report announced on July 27th, the company exceeded analysts’ expectations by revealing earnings per share (EPS) of $1.01 for the quarter compared to the consensus estimate of $0.91 EPS—an impressive beat by $0.10 EPS.
During the same period, A.O. Smith recorded revenue of $960.80 million, which marginally missed the anticipated revenue figure of $961.17 million—a decrease in revenue by just 0.5% year-over-year.
Despite a slight decline in quarterly revenue compared to the previous year’s results, A.O. Smith exhibited a return on equity (ROE) of 29.73% and a net margin of 7.32%, indicating a healthy financial position and efficient utilization of resources.
Analysts foresee positive prospects for A.O. Smith as they estimate earning per share (EPS) to reach $3.57 for the current fiscal year—a testament to their confidence in the company’s ability to deliver strong financial performance moving forward.
Fort L.P.’s decision to reduce its holdings may be attributed to various factors such as portfolio rebalancing or profit-taking after witnessing substantial gains in A.O.Smith’s stock. However, it is important to note that investing decisions by institutional investors like Fort L.P. are based on various factors and should not be taken as a definitive indication of the stock’s future performance.
For further insights into A.O. Smith’s financial standing and industry position, interested parties can refer to the latest report available for review. Monitoring the developments and future earnings announcements of A.O. Smith will provide a clearer understanding of the company’s growth trajectory and potential investment opportunities in this industrial products sector.
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Overview of Institutional Investor Activity and Stock Performance for A.O. Smith Co. (NYSE: AOS)
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”HBAN” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]September 10, 2023 – A. O. Smith Co. (NYSE: AOS), an industrial products company with a market capitalization of $10.56 billion, has seen recent modifications in its holdings by institutional investors and hedge funds. Gladstone Institutional Advisory LLC acquired a new position in shares of A. O. Smith during the first quarter, amounting to approximately $296,000. Healthcare of Ontario Pension Plan Trust Fund also acquired a new position during the same period worth around $106,000. Furthermore, Mirova added to its position with shares valued at approximately $155,000.
Notably, Stifel Financial Corp increased its stake in A. O. Smith by 3.5% during the first quarter and currently owns 95,058 shares worth $6,573,000. Bank of America Corp DE raised its position by 9.8% during the same period and now holds 1,748,280 shares with an estimated value of $120,8940,000.
As for stock performance on Friday’s market opening (NYSE AOS), A.O.Smith began trading at $70.19 per share with a fifty-day simple moving average (SMA) of $72.39 and a two-hundred-day SMA of $69.49 in September 10th ,2023 reporting period.. The company’s stock reached an annual high of $76.94 and dropped to a low of $46.58 over the span of twelve months.
With a current ratio of 1/81 and a quick ratio of 1/22 coupled with a debt-to-equity ratio of 0/10%, A.O.Smith appears to be maintaining financial stability in this report period.
A dividend payout from A.O.Smith was recently announced with shareholders who were registered by August 15th receiving a dividend payment on Tuesday August 15th. This dividend, amounting to $0.30 per share, signifies a payout ratio of 66.30% and presents an annualized yield of 1.71%.
Numerous brokerages have reviewed and weighed in on A.O.Smith’s performance in recent times. Seaport Res Ptn reaffirmed its “neutral” rating on the stock in August 7th’s research report. Meanwhile, DA Davidson increased their target price from $82.00 to $87.00 and Stifel Nicolaus raised their target price from $71.00 to $80.00 while maintaining a “hold” rating.
Another research report from StockNews.com initiated coverage on A.O.Smith and gave the stock a “buy” rating.
While two analysts have rated the stock as sell, five have assigned a hold rating, with an additional two assigning a buy rating for the company.
Overall, according to data gathered from Bloomberg, A.O.Smith currently holds a consensus rating of “Hold” alongside a consensus target price of $70.29.
In conclusion, A.O.Smith’s recent portfolio modifications by institutional investors and hedge funds, coupled with its financial stability and dividend payout ratio indicate a degree of confidence in the company’s prospects within the market. Moreover, despite varying opinions from brokerage firms, the majority view points towards cautious optimism regarding this industrial products company’s potential moving forward.
