Pool (NASDAQ:POOL) Trading 7.1% Higher – Here’s Why

Pool Corporation (NASDAQ:POOL)’s share price shot up 7.1% during mid-day trading on Tuesday . The stock traded as high as $192.85 and last traded at $193.7930. 590,979 shares changed hands during trading, a decline of 30% from the average session volume of 839,828 shares. The stock had previously closed at $180.95.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on POOL. Deutsche Bank Aktiengesellschaft set a $246.00 price target on shares of Pool in a research report on Friday, February 20th. Wells Fargo & Company reduced their price objective on shares of Pool from $230.00 to $215.00 and set an “equal weight” rating for the company in a research note on Wednesday, April 8th. Stifel Nicolaus lowered their target price on Pool from $240.00 to $210.00 and set a “hold” rating for the company in a report on Monday, May 11th. Weiss Ratings lowered Pool from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, May 14th. Finally, Zacks Research upgraded shares of Pool from a “strong sell” rating to a “hold” rating in a report on Monday, April 27th. Four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $261.38.

Pool Price Performance

The company has a quick ratio of 0.55, a current ratio of 1.87 and a debt-to-equity ratio of 1.09. The firm has a market cap of $7.02 billion, a PE ratio of 17.77, a price-to-earnings-growth ratio of 2.35 and a beta of 1.10. The stock has a 50 day moving average price of $199.12 and a two-hundred day moving average price of $224.28.

Pool (NASDAQ:POOL) last released its earnings results on Thursday, April 23rd. The specialty retailer reported $1.43 EPS for the quarter, topping analysts’ consensus estimates of $1.34 by $0.09. The company had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.82 billion. Pool had a net margin of 7.57% and a return on equity of 32.37%. Pool’s revenue for the quarter was up 6.2% on a year-over-year basis. During the same period last year, the business earned $1.32 EPS. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. As a group, equities analysts expect that Pool Corporation will post 11.08 earnings per share for the current year.

Pool Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 14th were paid a $1.30 dividend. This is a positive change from Pool’s previous quarterly dividend of $1.25. The ex-dividend date was Thursday, May 14th. This represents a $5.20 dividend on an annualized basis and a yield of 2.7%. Pool’s dividend payout ratio (DPR) is 47.84%.

Pool declared that its Board of Directors has initiated a share buyback program on Wednesday, April 29th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the specialty retailer to reacquire up to 7.8% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Pool

In other news, Director James D. Hope bought 464 shares of the firm’s stock in a transaction that occurred on Thursday, May 7th. The stock was purchased at an average price of $194.41 per share, with a total value of $90,206.24. Following the completion of the acquisition, the director directly owned 3,678 shares of the company’s stock, valued at $715,039.98. This trade represents a 14.44% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David G. Whalen bought 525 shares of the company’s stock in a transaction that occurred on Friday, May 8th. The stock was purchased at an average price of $190.44 per share, for a total transaction of $99,981.00. Following the transaction, the director owned 8,936 shares of the company’s stock, valued at $1,701,771.84. The trade was a 6.24% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 26,989 shares of company stock worth $5,067,747 in the last 90 days. 3.00% of the stock is owned by company insiders.

Institutional Trading of Pool

Hedge funds and other institutional investors have recently made changes to their positions in the business. Jacobs Levy Equity Management Inc. purchased a new position in shares of Pool during the 1st quarter valued at about $400,000. Millennium Management LLC grew its holdings in Pool by 237.9% during the first quarter. Millennium Management LLC now owns 17,390 shares of the specialty retailer’s stock worth $5,536,000 after acquiring an additional 12,244 shares during the period. Empowered Funds LLC acquired a new stake in Pool during the first quarter worth about $639,000. Geneos Wealth Management Inc. raised its position in Pool by 164.4% during the first quarter. Geneos Wealth Management Inc. now owns 156 shares of the specialty retailer’s stock valued at $50,000 after acquiring an additional 97 shares in the last quarter. Finally, Acadian Asset Management LLC lifted its holdings in Pool by 201.2% in the first quarter. Acadian Asset Management LLC now owns 2,012 shares of the specialty retailer’s stock valued at $639,000 after acquiring an additional 1,344 shares during the period. Institutional investors and hedge funds own 98.99% of the company’s stock.

Pool Company Profile

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation’s extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company’s product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.