A.O. Smith Corp (AOS) Shares Decline Despite Market Challenges

The stock of A.O. Smith Corp (NYSE: AOS) has decreased by -0.15 when compared to last closing price of 73.11.Despite this, the company has seen a loss of -3.99% in its stock price over the last five trading days. zacks.com reported 2024-11-13 that AOS, AGL and ABG have been added to the Zacks Rank #5 (Strong Sell) List on November 13, 2024.

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

A.O. Smith Corp (NYSE: AOS) has a price-to-earnings ratio of 19.26x that is above its average ratio. Additionally, the 36-month beta value for AOS is 1.16. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 3 rating it as “overweight,” 8 rating it as “hold,” and 0 rating it as “sell.”

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The public float for AOS is 117.94M and currently, short sellers hold a 2.80% ratio of that float. The average trading volume of AOS on November 15, 2024 was 997.02K shares.

AOS’s Market Performance

AOS’s stock has seen a -3.99% decrease for the week, with a -9.01% drop in the past month and a -8.35% fall in the past quarter. The volatility ratio for the week is 1.71%, and the volatility levels for the past 30 days are at 1.97% for A.O. Smith Corp The simple moving average for the last 20 days is -3.91% for AOS’s stock, with a simple moving average of -12.02% 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 $80 based on the research report published on October 23, 2024 of the current year 2024.

DA Davidson, on the other hand, stated in their research note that they expect to see AOS reach a price target of $80. The rating they have provided for AOS stocks is “Neutral” according to the report published on October 23rd, 2024.

Stifel gave a rating of “Buy” to AOS, setting the target price at $98 in the report published on July 24th of the current year.

AOS Trading at -9.52% 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 -21.03% of loss for the given period.

Volatility was left at 1.97%, however, over the last 30 days, the volatility rate increased by 1.71%, as shares sank -7.30% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -6.24% lower at present.

During the last 5 trading sessions, AOS fell by -3.99%, which changed the moving average for the period of 200-days by -5.94% in comparison to the 20-day moving average, which settled at $75.97. In addition, A.O. Smith Corp saw -11.45% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AOS starting from Carver Samuel M., who sale 14,705 shares at the price of $81.00 back on Aug 07 ’24. After this action, Carver Samuel M. now owns 2,399 shares of A.O. Smith Corp, valued at $1,191,146 using the latest closing price.

SAMUEL M CARVER, the Officer of A.O. Smith Corp, proposed sale 14,705 shares at $81.00 during a trade that took place back on Aug 07 ’24, which means that SAMUEL M CARVER is holding shares at $1,191,146 based on the most recent closing price.

Stock Fundamentals for AOS

Current profitability levels for the company are sitting at:

  • 0.19 for the present operating margin
  • 0.38 for the gross margin

The net margin for A.O. Smith Corp stands at 0.14. The total capital return value is set at 0.32. Equity return is now at value 29.54, with 17.66 for asset returns.

Based on A.O. Smith Corp (AOS), the company’s capital structure generated 0.06 points at debt to capital in total, while cash flow to debt ratio is standing at 4.94. The debt to equity ratio resting at 0.06. The interest coverage ratio of the stock is 137.13.

Currently, EBITDA for the company is 823.8 million with net debt to EBITDA at -0.09. When we switch over and look at the enterprise to sales, we see a ratio of 2.71. The receivables turnover for the company is 6.98for trailing twelve months and the total asset turnover is 1.23. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.67.

Conclusion

In conclusion, A.O. Smith Corp (AOS) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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