A.O. Smith Corp. (NYSE: AOS)’s stock price has dropped by -1.70 in relation to previous closing price of 88.65. Nevertheless, the company has seen a loss of -1.92% in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-04 that We have narrowed our search to five manufacturing stocks with strong potential for 2024. These stocks are: PH, IR, CR, AOS, HUBB.
Is It Worth Investing in A.O. Smith Corp. (NYSE: AOS) Right Now?
A.O. Smith Corp. (NYSE: AOS) has a higher price-to-earnings ratio of 23.64x compared to its average ratio. AOS has 36-month beta value of 1.25. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 3 as “overweight,” 8 as “hold,” and 0 as “sell.”
The public float for AOS is 119.28M, and currently, short sellers hold a 2.78% ratio of that float. The average trading volume of AOS on April 05, 2024 was 939.30K shares.
AOS’s Market Performance
AOS stock saw an increase of -1.92% in the past week, with a monthly gain of 4.12% and a quarterly increase of 10.71%. The volatility ratio for the week is 1.56%, and the volatility levels for the last 30 days are 1.59% for A.O. Smith Corp. (AOS). The simple moving average for the past 20 days is -0.30% for AOS’s stock, with a 15.22% simple moving average for the past 200 days.
Analysts’ Opinion of AOS
Loop Capital, on the other hand, stated in their research note that they expect to see AOS reach a price target of $65, previously predicting the price at $67. The rating they have provided for AOS stocks is “Hold” according to the report published on January 17th, 2023.
UBS gave a rating of “Sell” to AOS, setting the target price at $58 in the report published on January 10th of the previous year.
AOS Trading at 4.43% 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 -3.13% of loss for the given period.
Volatility was left at 1.59%, however, over the last 30 days, the volatility rate increased by 1.56%, as shares surge +3.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +6.46% upper at present.
During the last 5 trading sessions, AOS fell by -1.92%, which changed the moving average for the period of 200-days by +22.73% in comparison to the 20-day moving average, which settled at $87.53. In addition, A.O. Smith Corp. saw 5.70% 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 Heideman Robert J, who sale 9,890 shares at the price of $84.63 back on Mar 05 ’24. After this action, Heideman Robert J now owns 9,455 shares of A.O. Smith Corp., valued at $837,039 using the latest closing price.
Rajendra Ajita G, the Director of A.O. Smith Corp., sale 60,258 shares at $84.51 during a trade that took place back on Mar 04 ’24, which means that Rajendra Ajita G is holding 56,951 shares at $5,092,108 based on the most recent closing price.
Stock Fundamentals for AOS
Current profitability levels for the company are sitting at:
- 0.2 for the present operating margin
- 0.39 for the gross margin
The net margin for A.O. Smith Corp. stands at 0.14. The total capital return value is set at 0.33. Equity return is now at value 30.99, with 17.01 for asset returns.
Based on A.O. Smith Corp. (AOS), the company’s capital structure generated 0.08 points at debt to capital in total, while cash flow to debt ratio is standing at 4.32. The debt to equity ratio resting at 0.08. The interest coverage ratio of the stock is 63.15.
Currently, EBITDA for the company is 842.6 million with net debt to EBITDA at -0.22. When we switch over and look at the enterprise to sales, we see a ratio of 3.28. The receivables turnover for the company is 6.46for trailing twelve months and the total asset turnover is 1.2. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.59.
Conclusion
To put it simply, A.O. Smith Corp. (AOS) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
