Pool Corporation Gets Hold Rating from Wells Fargo with $320 Price Target

Wells Fargo analyst Deepa Raghavan maintained a Hold rating on Pool with a $320.00 price target. The company's shares closed at $296.18. The analyst consensus rating for Pool is Moderate Buy with a $316.50 average price target. Pool has a one-year high of $395.60 and a one-year low of $282.22.

Wells Fargo analyst Deepa Raghavan maintained a Hold rating on Pool Corporation (NASDAQ:POOL) with a $320.00 price target. The company's shares closed at $296.18 on July 2, 2025. The analyst consensus rating for Pool is Moderate Buy with a $316.50 average price target. Pool has a one-year high of $395.60 and a one-year low of $282.22.

The company, which distributes swimming pool supplies, equipment, and related leisure products, has shown resilience in the market. Pool's stock has decreased by 6.6% year-to-date, trading at $372.54. The specialty retailer reported $4.99 earnings per share for the quarter, topping analysts' consensus estimates of $4.90 by $0.09. However, revenue for the quarter was down 4.7% compared to the same quarter last year.

Analysts have noted that Pool's valuation metrics, such as the P/E ratio and P/B ratio, indicate that the stock may be overvalued. The P/E ratio of 29.15 is higher than the market average of 129.76 and the sector average of 14.72. The PEG Ratio of 2.73 also suggests that the company could be overvalued. The P/B Ratio of 10.98 further supports this notion, as it is above the 3 threshold indicating potential overvaluation.

Despite these concerns, analysts have highlighted the company's strong dividend history and sustainability. Pool has been increasing its dividend for 14 years and has a dividend payout ratio of 37.56%, indicating a healthy and sustainable dividend. The dividend yield of 1.29% is also higher than the bottom 25% of all dividend-paying stocks.

Institutional ownership is high, with 98.99% of the stock held by institutions, suggesting strong market trust in the company. However, insider ownership is relatively low, with only 3.00% of the stock held by insiders.

Pool's stock has been the subject of 5 research reports in the past 90 days, indicating strong analyst interest. The company's news sentiment score is 0.71, similar to the average news sentiment of Consumer Discretionary companies. MarketBeat has tracked 21 news articles for Pool this week, compared to an average of 49 articles per week.

In conclusion, while analysts have mixed views on Pool Corporation's stock, the company's strong dividend history and institutional ownership suggest that it may be a solid long-term investment. However, the potential overvaluation indicated by its valuation metrics should be considered before making a decision.

[1] https://www.marketbeat.com/stocks/NASDAQ/POOL/