Key Points
- Insider buying stood out: Director Manuel Perez de la Mesa bought 10,000 Pool shares for about $1.9 million at $190 each, boosting his ownership by nearly 50%. Two other directors also purchased shares, reinforcing the insider-confidence theme.
- Pool reported solid earnings and raised guidance: The company posted $1.43 EPS, beating analyst estimates, while revenue rose 6.2% year over year. Pool also set FY2026 EPS guidance at 10.87 to 11.17.
- Shareholder returns are improving: Pool authorized a $600 million share repurchase program and raised its quarterly dividend to $1.30 from $1.25, implying an annualized dividend of $5.20 and a yield of about 2.8%.
Pool Corporation (NASDAQ:POOL - Get Free Report) Director James Hope acquired 464 shares of the business's stock in a transaction dated Thursday, May 7th. The shares were acquired at an average cost of $194.41 per share, with a total value of $90,206.24. Following the acquisition, the director directly owned 3,678 shares of the company's stock, valued at $715,039.98. This represents a 14.44% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.
Pool Trading Down 1.4%
Shares of POOL opened at $187.77 on Friday. Pool Corporation has a 1-year low of $184.50 and a 1-year high of $345.00. The company has a market capitalization of $6.84 billion, a P/E ratio of 17.27, a P/E/G ratio of 2.41 and a beta of 1.16. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.87 and a quick ratio of 0.55. The firm's 50 day simple moving average is $212.09 and its 200 day simple moving average is $237.58.
Pool (NASDAQ:POOL - Get Free Report) last issued its quarterly 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 firm had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.82 billion. Pool had a net margin of 7.57% and a return on equity of 32.37%. The business's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.32 EPS. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. Sell-side analysts forecast that Pool Corporation will post 11.07 earnings per share for the current fiscal year.
Pool Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 28th. Stockholders of record on Thursday, May 14th will be issued a $1.30 dividend. This represents a $5.20 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Thursday, May 14th. This is an increase from Pool's previous quarterly dividend of $1.25. Pool's dividend payout ratio (DPR) is currently 46.00%.
Pool declared that its board has initiated a share repurchase program on Wednesday, April 29th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the specialty retailer to repurchase up to 7.8% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's management believes its shares are undervalued.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently made changes to their positions in POOL. PNC Financial Services Group Inc. increased its stake in shares of Pool by 20.7% in the first quarter. PNC Financial Services Group Inc. now owns 7,054 shares of the specialty retailer's stock worth $1,427,000 after buying an additional 1,209 shares during the period. Copeland Capital Management LLC boosted its holdings in shares of Pool by 1.8% during the first quarter. Copeland Capital Management LLC now owns 71,259 shares of the specialty retailer's stock worth $14,418,000 after purchasing an additional 1,233 shares during the period. Bessemer Group Inc. increased its holdings in Pool by 114.7% during the 1st quarter. Bessemer Group Inc. now owns 4,159 shares of the specialty retailer's stock valued at $841,000 after purchasing an additional 2,222 shares during the period. D.A. Davidson & CO. bought a new position in Pool during the 1st quarter valued at approximately $319,000. Finally, Sanctuary Advisors LLC raised its position in Pool by 34.8% during the 1st quarter. Sanctuary Advisors LLC now owns 11,177 shares of the specialty retailer's stock valued at $2,261,000 after purchasing an additional 2,884 shares during the last quarter. Institutional investors own 98.99% of the company's stock.
Pool News Summary
Here are the key news stories impacting Pool this week:
- Positive Sentiment: Director Manuel J. Perez de la Mesa bought 10,000 shares for about $1.9 million, a sizable increase in his stake that can signal strong insider confidence in Pool Corporation’s outlook. SEC filing
- Positive Sentiment: Director John E. Stokely purchased 1,000 shares, adding to his position and reinforcing the view that management insiders see value at current levels. SEC filing
- Positive Sentiment: Director James D. Hope also bought shares, further adding to the insider-buying cluster that often supports investor sentiment. SEC filing
- Positive Sentiment: Seeking Alpha published a note titled “Pool Corporation: Abrupt CEO Change Doesn't Disrupt Earnings (Rating Upgrade),” suggesting at least one analyst sees the leadership change as manageable and the earnings outlook still intact. Article
- Neutral Sentiment: Several unrelated articles about pools, pool financing, and pool cleaners appeared in the news feed, but they do not appear to be direct company-specific catalysts for Pool Corporation.
Wall Street Analyst Weigh In
Several analysts have issued reports on POOL shares. The Goldman Sachs Group cut their target price on Pool from $360.00 to $310.00 and set a "buy" rating for the company in a research note on Tuesday, January 13th. Stifel Nicolaus lifted their price target on shares of Pool from $232.00 to $240.00 and gave the stock a "hold" rating in a research note on Friday, April 24th. Wells Fargo & Company lowered their price objective on shares of Pool from $230.00 to $215.00 and set an "equal weight" rating for the company in a report on Wednesday, April 8th. Bank of America cut their price objective on shares of Pool from $229.00 to $226.00 and set an "underperform" rating for the company in a research note on Monday, April 20th. Finally, Zacks Research raised shares of Pool from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Four research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $265.13.
Read Our Latest Stock Report on POOL
About Pool
(
Get Free Report)
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.
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