Pool (POOL) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research downgraded shares of Pool (NASDAQ:POOL) from a buy rating to a hold rating in a research note released on Friday morning.

According to Zacks, “Shares of Pool have outperformed the industry in a year’s time. In fact, third-quarter 2018 marked the 33rd consecutive quarter of year-over-year sales growth for Pool. Top-line growth can be primarily attributed to improved performance of its base business. Notably, the company should continue benefiting in the near term, backed by base business sales growth and favorable trends in the housing market. Pool also raised its full-year guidance. In addition, continuous growth in remodel and replacement sectors of its business is a major positive. The company’s leading market share position and opportunistic expansion strategies position it well for revenue growth. Nonetheless, seasonality of Pool’s business and macroeconomic headwinds due to expanded global presence create headwinds.”

POOL has been the topic of a number of other research reports. BidaskClub lowered shares of Pool from a strong-buy rating to a buy rating in a report on Thursday, October 4th. Jefferies Financial Group started coverage on shares of Pool in a report on Friday, October 12th. They issued a hold rating and a $145.00 price target on the stock. Finally, Robert W. Baird dropped their target price on shares of Pool from $163.00 to $155.00 and set a neutral rating for the company in a research report on Friday, October 19th. Five investment analysts have rated the stock with a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. Pool presently has an average rating of Hold and an average target price of $160.40.

Pool stock traded down $4.10 during trading hours on Friday, reaching $152.41. The stock had a trading volume of 240,522 shares, compared to its average volume of 204,387. The firm has a market cap of $6.30 billion, a PE ratio of 38.20, a price-to-earnings-growth ratio of 1.18 and a beta of 1.05. Pool has a 52 week low of $123.88 and a 52 week high of $175.87. The company has a quick ratio of 1.18, a current ratio of 3.29 and a debt-to-equity ratio of 1.53.

Pool (NASDAQ:POOL) last announced its quarterly earnings results on Thursday, October 18th. The specialty retailer reported $1.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.58 by $0.08. The business had revenue of $811.31 million for the quarter. Pool had a net margin of 8.21% and a return on equity of 78.04%. Pool’s revenue was up 9.1% on a year-over-year basis. During the same period last year, the business earned $1.16 EPS. As a group, sell-side analysts expect that Pool will post 5.66 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, November 29th. Stockholders of record on Thursday, November 15th were given a $0.45 dividend. The ex-dividend date was Wednesday, November 14th. This represents a $1.80 annualized dividend and a dividend yield of 1.18%. Pool’s dividend payout ratio is 45.11%.

In other news, CEO De La Mesa Manuel J. Perez sold 10,300 shares of the firm’s stock in a transaction dated Thursday, November 29th. The shares were sold at an average price of $160.98, for a total value of $1,658,094.00. Following the completion of the sale, the chief executive officer now directly owns 69,001 shares of the company’s stock, valued at approximately $11,107,780.98. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO De La Mesa Manuel J. Perez sold 20,448 shares of the firm’s stock in a transaction dated Monday, December 3rd. The stock was sold at an average price of $162.28, for a total transaction of $3,318,301.44. Following the completion of the sale, the chief executive officer now directly owns 69,001 shares of the company’s stock, valued at $11,197,482.28. The disclosure for this sale can be found here. Company insiders own 6.00% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Paradigm Asset Management Co. LLC purchased a new position in Pool during the 3rd quarter valued at about $100,000. NumerixS Investment Technologies Inc lifted its position in Pool by 57.1% during the 2nd quarter. NumerixS Investment Technologies Inc now owns 1,100 shares of the specialty retailer’s stock valued at $167,000 after acquiring an additional 400 shares during the period. HWG Holdings LP purchased a new position in Pool during the 3rd quarter valued at about $179,000. Advisor Partners LLC purchased a new position in Pool during the 3rd quarter valued at about $201,000. Finally, Campbell & CO Investment Adviser LLC purchased a new position in Pool during the 3rd quarter valued at about $206,000. 94.54% of the stock is owned by institutional investors.

Pool Company Profile

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in North America, Europe, South America, and Australia. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; pool equipment and components for new pool construction and the remodeling of existing pools; and irrigation and landscape products consisting of irrigation system components, and professional lawn care equipment and supplies.

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