A. O. Smith Corporation (NYSE:AOS) finished Friday with a subtraction of -$0.63 to close at $71.36, a downside of -0.88 percent. An average of 770,180 shares of common stock have been traded in the last five days. There was a fall of -$1.28 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 1,106,385 shares traded, while the 50-day average volume stands at 960,268.
AOS stock has decreased by -2.37% in the last month. The company shares reached their 1-month lowest point of $71.23 on 08/11/23. With the stock rallying to its 52-week high on 07/20/23, shares of the company touched a low of $46.58 and a high of $76.94 in 52 weeks. It has reached a new high 17 times so far this year and achieved 24.67% or $14.12 in price. In spite of this, the price is down -7.26% from the 52-week high.
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Insider Transactions
AOS stock investors should be aware that A. O. Smith Corporation (AOS) stock had its last reported insider trading activity 8 days ago on Aug 04. In this transaction, the insider spent $83,103. Vice President and Controller, Otchere Benjamin A, disposed of 4,285 shares at a price of $70.00 on May 09. The insider now owns more than $299,970 worth of shares. Prior to that, Director SMITH MARK D went on to Sale 1,464 shares at $69.75 each on May 01. An amount of $102,108 was transacted.
Valuation Metrics
A. O. Smith Corporation (AOS) has a trailing price-to-earnings (P/E) ratio of 39.84. The stock’s beta is 1.28. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.86, the price-to-book (PB) ratio at 5.69, and the price-to-cash flow ratio at 30.24.
Financial Health
The quick ratio of A. O. Smith Corporation for the three months ended June 29 was 1.20, and the current ratio was 1.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.10 and a total debt to equity ratio of 0.11 for the quarter ending June 29. A. O. Smith Corporation’s EBITDA margin for the year ending June 29 is 19.49%, while its operating margin for the same period stands at 7.50%. Its gross profit as reported stood at $1.33 billion compared to revenue of $3.75 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, A. O. Smith Corporation’s return on assets was 8.30%.
Earnings Surprise
For the three-month period that ended June 29, A. O. Smith Corporation had $30.8 million in cash and short-term investments compared to $196.0 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $157.0 million in the quarter, while revenues of $126.9 million were grew 19.62%. The analyst consensus anticipated A. O. Smith Corporation’s latest quarter earnings to come in at $0.91 per share, but it turned out to be $1.01, a 11.00% surprise. For the quarter, EBITDA amounted to $223.3 million. Shareholders own equity worth $150.49 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at A. O. Smith Corporation (AOS) price momentum. RSI 9-day as of the close on 11 August was 33.40%, suggesting the stock is Neutral, with historical volatility in this time frame at 12.60%.
As of today, AOS’s price is $72.64 -1.76% or -$1.28 from its 5-day moving average. AOS is currently trading -4.10% lower than its 20-day SMA and +7.39% higher than its 100-day SMA. However, the stock’s current price level is +11.60% above the SMA50 and +40.47% above the SMA200.
The stochastic %K and %D were 11.78% and 21.76%, respectively, and the average true range (ATR) was 1.41. With the 14-day stochastic at 2.65% and the average true range at 1.40, the RSI (14) stands at 40.74%. The stock has reached -0.55 on the 9-day MACD Oscillator while the 14-day reading was at -0.96.
Analyst Ratings
Seaport Research Partners launched coverage on A. O. Smith Corporation (NYSE: AOS) in its analyst report released on August 07, 2023. The firm assigned the stock a Neutral rating. The consensus rating for A. O. Smith Corporation (AOS) among analysts is Hold. According to current brokerage recommendations, 2 brokerage firms advise that investors sell AOS, while 9 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.
What is AOS’s price target for the next 12 months?
Analysts predict a range of price targets between $62.00 and $87.00, with a median target of $78.00. Taking a look at these predictions, the average price target given by analysts for A. O. Smith Corporation (AOS) stock is $75.63.
