A. O. Smith (NYSE:AOS) Shares Gap Down – Here’s Why

A. O. Smith Co. (NYSE:AOS) gapped down before the market opened on Friday . The stock had previously closed at $86.26, but opened at $80.34. A. O. Smith shares last traded at $80.59, with a volume of 528,511 shares.

Analyst Upgrades and Downgrades

AOS has been the subject of a number of analyst reports. StockNews.com raised A. O. Smith from a “hold” rating to a “buy” rating in a research report on Tuesday, October 8th. Robert W. Baird dropped their price objective on shares of A. O. Smith from $92.00 to $90.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 24th. Stifel Nicolaus upgraded shares of A. O. Smith from a “hold” rating to a “buy” rating and raised their price objective for the company from $97.00 to $98.00 in a report on Wednesday, July 24th. Finally, UBS Group increased their target price on A. O. Smith from $73.00 to $75.00 and gave the company a “sell” rating in a report on Monday, July 8th. One analyst has rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat.com, A. O. Smith currently has an average rating of “Hold” and an average price target of $89.67.

A. O. Smith Price Performance

The stock has a market capitalization of $11.79 billion, a PE ratio of 20.84, a P/E/G ratio of 2.40 and a beta of 1.15. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.07 and a current ratio of 1.70. The stock’s 50-day moving average is $82.73 and its 200 day moving average is $83.99.

A. O. Smith (NYSE:AOS) last posted its earnings results on Tuesday, July 23rd. The industrial products company reported $1.06 earnings per share for the quarter, missing the consensus estimate of $1.07 by ($0.01). The firm had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1 billion. A. O. Smith had a net margin of 14.67% and a return on equity of 31.04%. The firm’s revenue for the quarter was up 6.6% on a year-over-year basis. During the same period in the previous year, the firm posted $1.01 earnings per share. As a group, equities analysts expect that A. O. Smith Co. will post 4.07 earnings per share for the current year.

A. O. Smith Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 15th. Stockholders of record on Thursday, October 31st will be issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.68%. This is a boost from A. O. Smith’s previous quarterly dividend of $0.32. The ex-dividend date is Thursday, October 31st. A. O. Smith’s payout ratio is presently 32.99%.

Insider Activity at A. O. Smith

In other A. O. Smith news, SVP Samuel M. Carver sold 14,705 shares of A. O. Smith stock in a transaction on Wednesday, August 7th. The shares were sold at an average price of $81.00, for a total value of $1,191,105.00. Following the transaction, the senior vice president now directly owns 2,399 shares in the company, valued at approximately $194,319. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 2.70% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of AOS. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of A. O. Smith during the second quarter worth $25,000. Isthmus Partners LLC acquired a new stake in shares of A. O. Smith in the 2nd quarter worth $27,000. Quarry LP boosted its holdings in shares of A. O. Smith by 214.9% in the second quarter. Quarry LP now owns 359 shares of the industrial products company’s stock valued at $29,000 after acquiring an additional 245 shares in the last quarter. Versant Capital Management Inc increased its stake in shares of A. O. Smith by 157.2% during the second quarter. Versant Capital Management Inc now owns 463 shares of the industrial products company’s stock worth $38,000 after acquiring an additional 283 shares during the period. Finally, ORG Partners LLC raised its holdings in A. O. Smith by 665.0% during the first quarter. ORG Partners LLC now owns 612 shares of the industrial products company’s stock worth $55,000 after purchasing an additional 532 shares in the last quarter. 76.10% of the stock is currently owned by hedge funds and other institutional investors.

A. O. Smith Company Profile

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.