Pool (NASDAQ:POOL) Stock Jumps 8.7% on Earnings Beat

Shares of Pool Corporation (NASDAQ:POOL) rose 8.7% during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $189.66 and last traded at $187.5250. Approximately 223,323 shares traded hands during trading, a decline of 74% from the average session volume of 854,870 shares. The stock had previously closed at $172.44.

The specialty retailer reported $3.40 earnings per share for the quarter, beating analysts’ consensus estimates of $3.36 by $0.04. The firm had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.48 billion. Pool had a net margin of 7.40% and a return on equity of 32.74%. The company’s quarterly revenue was up 3.7% on a year-over-year basis. During the same period in the previous year, the company earned $3.39 earnings per share.

Pool Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Thursday, August 13th were issued a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Thursday, August 13th. Pool’s payout ratio is 47.84%.

Analysts Set New Price Targets

Several equities analysts recently commented on POOL shares. Robert W. Baird set a $260.00 price objective on Pool in a research note on Friday, July 24th. Longbow Research reissued a “neutral” rating on shares of Pool in a research report on Monday. Stephens restated an “overweight” rating and issued a $225.00 target price on shares of Pool in a research note on Thursday, August 20th. DA Davidson assumed coverage on Pool in a research note on Monday, August 24th. They issued a “neutral” rating and a $210.00 target price on the stock. Finally, Oppenheimer dropped their price target on Pool from $280.00 to $227.00 and set an “outperform” rating on the stock in a research report on Friday, July 24th. Five analysts have rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $226.70.

Hedge Funds Weigh In On Pool

Large investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of Pool in the second quarter worth $866,576,000. Bank of New York Mellon Corp purchased a new position in shares of Pool in the second quarter valued at $148,216,000. Southpoint Capital Advisors LP raised its stake in shares of Pool by 66.7% during the 1st quarter. Southpoint Capital Advisors LP now owns 500,000 shares of the specialty retailer’s stock valued at $101,165,000 after purchasing an additional 200,000 shares during the period. Corient Private Wealth LP raised its stake in shares of Pool by 59.5% during the 2nd quarter. Corient Private Wealth LP now owns 433,569 shares of the specialty retailer’s stock valued at $93,174,000 after purchasing an additional 161,787 shares during the period. Finally, Bank of America Corp DE raised its stake in shares of Pool by 48.0% during the 1st quarter. Bank of America Corp DE now owns 261,402 shares of the specialty retailer’s stock valued at $52,889,000 after purchasing an additional 84,817 shares during the period. 98.99% of the stock is owned by institutional investors.

Pool Price Performance

The business has a fifty day moving average of $173.96 and a 200-day moving average of $190.83. The firm has a market cap of $6.85 billion, a PE ratio of 17.35, a PEG ratio of 2.64 and a beta of 1.05. The company has a current ratio of 2.67, a quick ratio of 0.91 and a debt-to-equity ratio of 1.05.

About Pool

Pool Corporation, doing business as POOLCORP, is a wholesale distributor of swimming pool and outdoor living products. The company supplies pool contractors, retailers, builders, and service professionals with products used to construct, renovate, maintain, and enhance residential and commercial pools.

Its product offerings include swimming pool equipment, pumps, filters, heaters, cleaners, lighting, chemicals, replacement parts, and maintenance supplies. POOLCORP also distributes products for outdoor living, including patio and recreational items, as well as irrigation and landscape-related supplies in selected markets.

Founded in 1993 and headquartered in Covington, Louisiana, POOLCORP serves customers through a network of distribution centers and sales operations in the United States, Canada, Europe, and Australia.