A. O. Smith (NYSE:AOS) Trading Up 3.7% Following Better-Than-Expected Earnings

A. O. Smith Co. (NYSE:AOS) shares traded up 3.7% on Tuesday following a stronger than expected earnings report. The stock traded as high as $68.18 and last traded at $67.16. 253,864 shares were traded during mid-day trading, a decline of 77% from the average session volume of 1,123,315 shares. The stock had previously closed at $64.78.

The industrial products company reported $0.95 EPS for the quarter, topping the consensus estimate of $0.90 by $0.05. A. O. Smith had a net margin of 13.98% and a return on equity of 28.87%. During the same period in the prior year, the firm posted $1.00 earnings per share. The business’s revenue was down 1.5% compared to the same quarter last year.

A. O. Smith Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, May 15th. Stockholders of record on Wednesday, April 30th will be given a dividend of $0.34 per share. The ex-dividend date of this dividend is Wednesday, April 30th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.02%. A. O. Smith’s dividend payout ratio (DPR) is currently 37.47%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on AOS. Weiss Ratings reiterated a “hold (c)” rating on shares of A. O. Smith in a research report on Thursday, April 24th. Citigroup reduced their price objective on A. O. Smith from $69.00 to $65.00 and set a “neutral” rating on the stock in a research note on Monday, April 14th. StockNews.com upgraded A. O. Smith from a “hold” rating to a “buy” rating in a research report on Friday, January 31st. Oppenheimer lowered their price target on shares of A. O. Smith from $88.00 to $84.00 and set an “outperform” rating for the company in a report on Friday, January 31st. Finally, Stifel Nicolaus dropped their price objective on A. O. Smith from $84.00 to $75.00 and set a “buy” rating for the company in a report on Wednesday, April 16th. Four investment analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $76.50.

Insiders Place Their Bets

In other news, SVP Douglas Samuel Karge sold 419 shares of the business’s stock in a transaction that occurred on Friday, February 7th. The stock was sold at an average price of $65.65, for a total value of $27,507.35. Following the sale, the senior vice president now directly owns 2,749 shares of the company’s stock, valued at $180,471.85. The trade was a 13.23 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Robert J. Heideman sold 1,026 shares of the firm’s stock in a transaction that occurred on Friday, February 7th. The shares were sold at an average price of $65.65, for a total value of $67,356.90. Following the transaction, the vice president now directly owns 8,889 shares of the company’s stock, valued at approximately $583,562.85. This trade represents a 10.35 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.76% of the company’s stock.

Hedge Funds Weigh In On A. O. Smith

Hedge funds have recently bought and sold shares of the company. Ridgewood Investments LLC purchased a new stake in shares of A. O. Smith during the fourth quarter valued at approximately $60,000. New Age Alpha Advisors LLC purchased a new stake in A. O. Smith during the 4th quarter valued at $66,000. Intact Investment Management Inc. bought a new stake in shares of A. O. Smith in the 1st quarter worth $72,000. Private Trust Co. NA raised its stake in shares of A. O. Smith by 22.1% in the first quarter. Private Trust Co. NA now owns 1,181 shares of the industrial products company’s stock worth $77,000 after purchasing an additional 214 shares during the last quarter. Finally, Canada Post Corp Registered Pension Plan bought a new position in shares of A. O. Smith during the fourth quarter valued at $84,000. Institutional investors own 76.10% of the company’s stock.

A. O. Smith Price Performance

The firm has a 50-day moving average of $65.25 and a 200 day moving average of $69.45. The company has a debt-to-equity ratio of 0.10, a current ratio of 1.55 and a quick ratio of 0.96. The company has a market capitalization of $9.71 billion, a PE ratio of 18.58, a PEG ratio of 1.46 and a beta of 1.26.

About A. O. Smith

A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.