On April 29, 2023, it was revealed that Synovus Financial Corp boosted its stocks in Pool Co. (NASDAQ:POOL) by 16% during the fourth quarter of the previous fiscal year. According to the Securities and Exchange Commission’s (SEC) filing, Synovus Financial Corp had purchased an additional 1,254 shares of stock, owning a total of 9,082 shares. At the end of the fiscal year, Synovus Financial Corp’s investments in Pool were worth an impressive $2,746,000.
Pool is a specialty retailer that distributes swimming pool supplies, equipment and related leisure products. Notably, in February 2023 at Pool’s quarterly earnings data release last Thursday Pool disappointed Wall Street analysts when it reported $1.79 earnings per share (EPS), missing consensus estimates by $0.21 per share.
While disappointment was felt around this miss on Wall Street and greater levels of market response will be determined in due course by investors and other stakeholders alike; there are some supportive data points to consider suggesting the 15.12 earnings per share predicted for this fiscal year are still achievable.
Regardless of these fluctuations or hiccups along financial horizons touted commandingly by experts engaged in equities analysis as just another day-in-the-life amidst an ever-fluid trading landscape; those at Pool continue to serve their customer base with a rich network of discretionary products like packaged pool kits and whole goods for all sorts of residential or commercial customers who require pool set-up solutions or versatile replacement parts to maintain older ones.
That being said; perhaps even more intriguing is the expansion into various other product lines beyond pool-related niches that offer both wholesalers and retailers even more opportunities within areas such as outdoor lighting or irrigation options for varying needs from professional landscapes to even golf courses with specialized water management preferences.
In summary then; while it might not have been quite as good from its most recent earnings release as expected according to a consensus of shareholder opinion at least; Pool’s vast supply of wholesale options for everything from chemical components and replacement parts, to leisure product creativity has an appreciative uptake globally by customers who continue to spend freely on such luxuries year after year.
Hedge Funds Show Increasing Interest in Pool Corp.
Pool Corp. Continues to Attract the Attention of Hedge Funds
Pool Corp., a leading swimming pool supplies and equipment distributor, has recently been attracting the interest of various hedge funds. Several hedge funds have increased their stakes in the company, while others have reduced their holdings.
Among those who boosted their holdings is Prospera Financial Services Inc, which added 33.7% to its position during the third quarter of the year. With an additional share count of 182, Prospera’s stake in Pool now amounts to 722 shares valued at $231,000.
Canada Pension Plan Investment Board has also increased its stake in Pool by 127.4%, adding 2,000 shares to its portfolio last quarter. This move brings its total position in Pool to 3,570 shares worth $1,136,000.
Meanwhile, DFPG Investments LLC joined the list of institutional investors with a new stake in Pool acquired during Q4 2022. The firm’s purchase amounted to $730,000 worth of Pool stock.
Other notable hedge funds that reinforced their holdings in Pool include Raymond James & Associates and Eaton Vance Management. Raymond James added approximately 82,140 shares worth $78,373,000 during Q3 2022 and currently owns over 246k shares in the specialty retailer. Eaton Vance Management also bought an extra 3,352 shares during Q3 with an investment value totaling around $26 million.
It’s worth noting that most of the stock (98.15%) is owned by hedge funds and other institutional investors as opposed to individual investors.
Shares of NASDAQ POOL were trading at $342.09 on Friday with a market capitalization of around $13 billion according to Yahoo Finance data valid April 29th. The stock had a price-to-earnings ratio (P/E) at about 20x and price-to-earnings-growth ratio (PEG) of 3.75 as of the same day. Further information shows that Pool has a 52 weeks range in share prices, from $278.10 up to $423.97.
Pool Corp. specializes in distributing swimming pool equipment and accessories, non-discretionary maintenance products, irrigation and landscape goods, power equipment designed for professional gardeners, and various outdoor kitchen components sweetening leisurely lifestyles.
At present, Pool has a payout ratio of 23.80%, as per its most recent filing of quarterly dividends paid on Wednesday, March 29th to investors holding positions on record by March 15th. The dividend paid was $1 per share, which translated into an annualized dividend of $4 at a yield of approximately 1.17%.
Brokerages’ analyses have rated POOL with mixed recommendations lately. For instance, Robert W. Baird reduced the stock’s price target from $404 to $385 while labeling it “neutral” investment-grade research report issued April 19th, but Loop Capital allowed itself more optimism and remained bullish on the shares stating a “buy” rating despite reducing price expectations for POOL from $415 down to $410 two days after Robert W.’s report.
On the whole ten recommendations were provided by nine investment banks/brokerages in January-April quarter overall data surveyed by Bloomberg analysts carried Bullish outlook amongst six brokerages/banks suggesting “buy” whilst four retained “hold.”