A. O. Smith (NYSE:AOS) Price Target Lowered to $64.00 at Citigroup

A. O. Smith (NYSE:AOS) had its price target trimmed by Citigroup from $65.00 to $64.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has a neutral rating on the industrial products company’s stock.

Other analysts have also issued reports about the stock. Weiss Ratings lowered shares of A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 27th. DA Davidson set a $67.00 price objective on A. O. Smith and gave the stock a “neutral” rating in a research report on Monday, May 4th. Zacks Research lowered A. O. Smith from a “hold” rating to a “strong sell” rating in a research note on Wednesday, May 6th. Stifel Nicolaus lowered their target price on A. O. Smith from $76.00 to $70.00 and set a “buy” rating on the stock in a report on Friday. Finally, JPMorgan Chase & Co. reissued an “underweight” rating and set a $60.00 price target (down from $65.00) on shares of A. O. Smith in a research report on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, A. O. Smith has an average rating of “Reduce” and an average price target of $67.75.

A. O. Smith Trading Up 0.8%

Shares of AOS stock opened at $60.31 on Friday. The stock has a market cap of $8.31 billion, a P/E ratio of 16.75, a P/E/G ratio of 1.33 and a beta of 1.16. The company has a quick ratio of 1.00, a current ratio of 1.59 and a debt-to-equity ratio of 0.32. A. O. Smith has a fifty-two week low of $54.16 and a fifty-two week high of $81.86. The business has a fifty day simple moving average of $59.56 and a 200-day simple moving average of $65.39.

A. O. Smith (NYSE:AOS) last released its quarterly earnings data on Thursday, July 30th. The industrial products company reported $1.03 EPS for the quarter, topping the consensus estimate of $0.96 by $0.07. The business had revenue of $1 billion for the quarter, compared to analyst estimates of $994.89 million. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The business’s revenue for the quarter was down .7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.07 EPS. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. On average, analysts forecast that A. O. Smith will post 3.74 earnings per share for the current fiscal year.

A. O. Smith Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.36 per share. The ex-dividend date is Friday, July 31st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.4%. A. O. Smith’s payout ratio is 38.30%.

Institutional Trading of A. O. Smith

A number of hedge funds have recently bought and sold shares of the company. Creative Financial Designs Inc. ADV grew its stake in A. O. Smith by 3,481.8% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 394 shares of the industrial products company’s stock worth $26,000 after acquiring an additional 383 shares during the period. Torren Management LLC purchased a new position in shares of A. O. Smith during the 4th quarter worth $31,000. Eagle Bay Advisors LLC acquired a new stake in shares of A. O. Smith during the fourth quarter worth $32,000. Larson Financial Group LLC boosted its holdings in shares of A. O. Smith by 67.9% during the third quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company’s stock worth $36,000 after purchasing an additional 197 shares during the last quarter. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of A. O. Smith in the fourth quarter valued at $35,000. Institutional investors and hedge funds own 76.10% of the company’s stock.

A. O. Smith News Summary

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported adjusted EPS of $1.03, above the $0.96 consensus estimate, while sales of approximately $1.0 billion also topped forecasts. North America sales rose 5% to $820.5 million, supported by the Leonard Valve acquisition, 21% boiler sales growth and pricing actions. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: Cash generation and shareholder returns improved. Year-to-date operating cash flow increased 42% to $254 million, free cash flow climbed 67% to $233 million, and the company raised its 2026 share-repurchase target to $300 million. A. O. Smith also declared a quarterly dividend of $0.36 per share. A. O. Smith Q2 Sales Report
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. Management reiterated adjusted EPS guidance of $3.70 to $3.85 and sales growth of 2% to 3%; the midpoint is close to the analyst consensus. The company’s earnings beat and boiler momentum provide support, but the outlook does not represent a major upward revision. A. O. Smith Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: International weakness and costs remain concerns. Rest of World sales fell 19%, primarily because of continued weakness in China’s consumer-appliance market. Quarterly revenue declined slightly year over year, adjusted EPS was below the prior-year result, and higher input costs pressured profitability. A. O. Smith Q2 Earnings Beat Estimates
• Negative Sentiment: Analysts lowered their valuation targets. Citigroup cut its target to $64 from $65 and kept a neutral rating, while Stifel reduced its target to $70 from $76 but maintained a buy rating. The reductions may limit upside sentiment despite both targets remaining above the recent trading level. Analyst Price Target Changes

A. O. Smith Company Profile

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.