Pool (POOL) Downgraded by Zacks Investment Research to “Hold”

Pool (NASDAQ:POOL) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.

According to Zacks, “Pool shares have outperformed the industry in the past year. In fact, first-quarter 2018 marked the 31st consecutive quarter of year-over-year growth for Pool in sales. Notably, the company should continue to benefit in the near term backed by base business sales growth and favorable trends in the housing market. Additionally, continuous growth in the 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. Earnings estimates for 2018 have also been revised upward over the past two months, reflecting analysts’ confidence in the company’s future potential. Nonetheless, seasonality of the company’s business and macroeconomic headwinds owing to large global presence raise concern.”

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A number of other brokerages have also issued reports on POOL. Berenberg Bank started coverage on shares of Pool in a report on Wednesday, June 20th. They issued a “hold” rating and a $157.00 price target on the stock. BidaskClub lowered shares of Pool from a “buy” rating to a “hold” rating in a report on Saturday, April 28th. ValuEngine raised shares of Pool from a “hold” rating to a “buy” rating in a report on Saturday, May 12th. Finally, Robert W. Baird lowered shares of Pool from an “outperform” rating to a “neutral” rating and set a $131.00 target price on the stock. in a research note on Tuesday. Four analysts have rated the stock with a hold rating, three have given a buy rating and one has given a strong buy rating to the stock. Pool presently has a consensus rating of “Buy” and a consensus price target of $148.60.

Pool traded down $2.18, reaching $150.95, during trading hours on Wednesday, Marketbeat.com reports. The stock had a trading volume of 150,046 shares, compared to its average volume of 179,554. The firm has a market cap of $6.20 billion, a PE ratio of 37.83 and a beta of 0.82. Pool has a 52 week low of $97.25 and a 52 week high of $157.52. The company has a quick ratio of 0.65, a current ratio of 1.97 and a debt-to-equity ratio of 2.19.

Pool (NASDAQ:POOL) last announced its quarterly earnings results on Thursday, April 19th. The specialty retailer reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.71 by $0.04. The business had revenue of $585.90 million for the quarter. Pool had a net margin of 7.10% and a return on equity of 74.42%. Pool’s revenue was up 7.2% on a year-over-year basis. During the same period last year, the business earned $0.52 EPS. sell-side analysts expect that Pool will post 5.53 earnings per share for the current fiscal year.

Pool announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 3rd that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the specialty retailer to reacquire up to 3.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s management believes its stock is undervalued.

In related news, General Counsel Jennifer M. Neil sold 6,012 shares of Pool stock in a transaction dated Thursday, April 26th. The shares were sold at an average price of $137.08, for a total transaction of $824,124.96. Following the completion of the transaction, the general counsel now directly owns 20,100 shares of the company’s stock, valued at approximately $2,755,308. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Mark W. Joslin sold 13,000 shares of Pool stock in a transaction dated Friday, May 11th. The shares were sold at an average price of $150.00, for a total transaction of $1,950,000.00. Following the transaction, the chief financial officer now directly owns 136,701 shares of the company’s stock, valued at $20,505,150. The disclosure for this sale can be found here. Insiders have sold a total of 32,512 shares of company stock worth $4,776,350 in the last ninety days. Insiders own 6.00% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Mount Yale Investment Advisors LLC purchased a new position in Pool during the 1st quarter valued at about $487,000. Amalgamated Bank raised its holdings in Pool by 6.5% in the first quarter. Amalgamated Bank now owns 8,754 shares of the specialty retailer’s stock worth $1,280,000 after buying an additional 533 shares during the last quarter. Principal Financial Group Inc. raised its holdings in Pool by 2.5% in the first quarter. Principal Financial Group Inc. now owns 205,748 shares of the specialty retailer’s stock worth $30,085,000 after buying an additional 4,922 shares during the last quarter. Summit Trail Advisors LLC raised its holdings in Pool by 10,523.4% in the first quarter. Summit Trail Advisors LLC now owns 1,712,925 shares of the specialty retailer’s stock worth $1,713,000 after buying an additional 1,696,801 shares during the last quarter. Finally, WINTON GROUP Ltd purchased a new position in Pool in the first quarter worth about $8,264,000. 94.41% of the stock is owned by institutional investors.

About Pool

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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