Pool (NASDAQ:POOL) Stock Jumps 7.4% – Time to Buy?

Pool Corporation (NASDAQ:POOL)’s share price traded up 7.4% on Thursday. The company traded as high as $170.83 and last traded at $169.8590. 469,992 shares traded hands during trading, a decline of 45% from the average session volume of 855,497 shares. The stock had previously closed at $158.12.

Key Pool News

Here are the key news stories impacting Pool this week:

• Positive Sentiment: Analysts expect Pool Corporation to potentially beat third-quarter earnings estimates, supported by the company’s earnings and revenue trends and current analyst projections. A stronger-than-expected report could improve sentiment toward the stock, which has recently traded well below its 12-month high. Pool Corp. Expected to Beat Earnings Estimates

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Wells Fargo & Company lowered their target price on Pool from $215.00 to $185.00 and set an “equal weight” rating on the stock in a research note on Friday, September 11th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Pool in a research note on Tuesday, August 11th. Bank of America cut their price target on Pool from $226.00 to $206.00 and set an “underperform” rating for the company in a research note on Monday, July 20th. Oppenheimer decreased their price objective on Pool from $280.00 to $227.00 and set an “outperform” rating for the company in a report on Friday, July 24th. Finally, DA Davidson assumed coverage on Pool in a research note on Monday, August 24th. They issued a “neutral” rating and a $210.00 price objective on the stock. Five equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $230.10.

Pool Stock Up 8.3%

The stock has a fifty day simple moving average of $177.05 and a two-hundred day simple moving average of $191.89. The firm has a market cap of $6.22 billion, a PE ratio of 15.75, a price-to-earnings-growth ratio of 2.26 and a beta of 1.05. The company has a current ratio of 2.67, a quick ratio of 0.91 and a debt-to-equity ratio of 1.05.

Pool (NASDAQ:POOL) last posted its earnings results on Thursday, July 23rd. The specialty retailer reported $5.38 EPS for the quarter, topping the consensus estimate of $5.33 by $0.05. The business had revenue of $1.82 billion during the quarter, compared to analysts’ expectations of $1.82 billion. Pool had a return on equity of 32.74% and a net margin of 7.40%. The firm’s revenue was up 2.2% on a year-over-year basis. During the same period in the previous year, the business earned $5.17 earnings per share. Pool has set its FY 2026 guidance at 10.660-10.960 EPS. As a group, sell-side analysts expect that Pool Corporation will post 10.94 EPS for the current fiscal year.

Pool Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, August 27th. Shareholders of record on Thursday, August 13th were given a dividend of $1.30 per share. The ex-dividend date was Thursday, August 13th. This represents a $5.20 annualized dividend and a yield of 3.0%. Pool’s payout ratio is presently 47.84%.

Hedge Funds Weigh In On Pool

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new position in Pool in the second quarter worth $866,576,000. T. Rowe Price Investment Management Inc. increased its stake in Pool by 3,831.9% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,001,987 shares of the specialty retailer’s stock valued at $457,955,000 after acquiring an additional 1,951,070 shares during the last quarter. Bank of New York Mellon Corp bought a new position in Pool in the second quarter valued at $148,216,000. Southpoint Capital Advisors LP raised its position in Pool by 66.7% during the first quarter. Southpoint Capital Advisors LP now owns 500,000 shares of the specialty retailer’s stock valued at $101,165,000 after purchasing an additional 200,000 shares in the last quarter. Finally, Corient Private Wealth LP raised its position in Pool by 59.5% during the second quarter. Corient Private Wealth LP now owns 433,569 shares of the specialty retailer’s stock valued at $93,174,000 after purchasing an additional 161,787 shares in the last quarter. Hedge funds and other institutional investors own 98.99% of the company’s stock.

About Pool

Pool Corporation (NASDAQ:POOL) is a distributor of swimming pool supplies, equipment and related products. The company serves professional pool contractors, retailers, builders and service providers, supplying products used to build, renovate, maintain and repair residential and commercial pools.

Its product offerings include pool chemicals, pumps, filters, heaters, cleaners, lighting, replacement parts and safety equipment. Pool also distributes products related to irrigation, landscaping and outdoor living, including patio and recreational products that complement pool installations and backyard projects.

Founded in 1993 and headquartered in Covington, Louisiana, Pool Corporation serves customers through a network of distribution centers and sales locations across North America, Europe and Australia.