We Analyzed the Future Direction of A. O. Smith Corporation (AOS), Here is What We Found


A. O. Smith Corporation (NYSE:AOS) went down by -0.58% from its latest closing price compared to the recent 1-year high of $58.05. The company’s stock price has collected -1.37% of loss in the last five trading sessions. Press Release reported on 10/12/20 that A. O. Smith increases quarterly dividend rate to $0.26 per share

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Is It Worth Investing in A. O. Smith Corporation (NYSE :AOS) Right Now?

A. O. Smith Corporation (NYSE:AOS) scored a price-to-earnings ratio above its average ratio, recording 30.13 x from its present earnings ratio. Plus, the 36-month beta value for AOS is at 1.10. Opinions of the stock are interesting as 4 analysts out of 12 who provided ratings for A. O. Smith Corporation declared the stock was a “buy,” while 0 rated the stock as “overweight,” 7 rated it as “hold,” and 1 as “sell.”

The average price from analysts is $56.14, which is $0.32 above the current price. AOS currently public float of 134.08M and currently shorts hold a 3.81% ratio of that float. Today, the average trading volume of AOS was 1.09M shares.

AOS’s Market Performance

AOS stocks went down by -1.37% for the week, with a monthly jump of 4.08% and a quarterly performance of 7.05%, while its annual performance rate touched 5.93%. The volatility ratio for the week stands at 1.93% while the volatility levels for the past 30 days are set at 2.45% for A. O. Smith Corporation. The simple moving average for the period of the last 20 days is 0.64% for AOS stocks with a simple moving average of 18.91% for the last 200 days.

Analysts’ Opinion of AOS

Many brokerage firms have already submitted their reports for AOS stocks, with UBS repeating the rating for AOS by listing it as a “Neutral.” The predicted price for AOS in the upcoming period, according to UBS is $60 based on the research report published on October 13th of the current year 2020.

Rosenblatt, on the other hand, stated in their research note that they expect to see AOS reach a price target of $62, previously predicting the price at $47. The rating they have provided for AOS stocks is “Buy” according to the report published on September 17th, 2020.

UBS gave a rating of “Buy” to AOS, setting the target price at $54 in the report published on May 29th of the current year.

AOS Trading at 6.07% from the 50-Day Moving Average

After a stumble in the market that brought AOS to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.58% of loss for the given period.

Volatility was left at 2.45%, however, over the last 30 days, the volatility rate increased by 1.93%, as shares surge +5.81% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +10.13% upper at present.

During the last 5 trading sessions, AOS fell by -1.37%, which changed the moving average for the period of 200-days by +15.80% in comparison to the 20-day moving average, which settled at $54.61. In addition, A. O. Smith Corporation saw 15.05% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AOS starting from Goodwin Wallace E, who sale 4,800 shares at the price of $57.50 back on Oct 09. After this action, Goodwin Wallace E now owns 16,098 shares of A. O. Smith Corporation, valued at $276,000 using the latest closing price.

Goodwin Wallace E, the SVP; Pres & GM, Lochinvar, LLC of A. O. Smith Corporation, sale 4,800 shares at $55.00 during a trade that took place back on Oct 05, which means that Goodwin Wallace E is holding 16,098 shares at $264,000 based on the most recent closing price.

Stock Fundamentals for AOS

Current profitability levels for the company are sitting at:

  • +15.60 for the present operating margin
  • +39.51 for the gross margin

The net margin for A. O. Smith Corporation stands at +12.36. The total capital return value is set at 23.70, while invested capital returns managed to touch 18.87. Equity return is now at value 18.10, with 9.90 for asset returns.

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Based on A. O. Smith Corporation (AOS), the company’s capital structure generated 20.08 points at debt to equity in total, while total debt to capital is 16.72. Total debt to assets is 10.95, with long-term debt to equity ratio resting at 18.95. Finally, the long-term debt to capital ratio is 15.78.

When we switch over and look at the enterrpise to sales, we see a ratio of 2.58, with the company’s debt to enterprise value settled at 0.04. The receivables turnover for the company is 4.84 and the total asset turnover is 0.98. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.96.

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