) recently authorized an additional stock repurchase program,
thereby maintaining the trend of returning wealth to its
shareholders from time to time, depending on market conditions.
Under this program, the company is authorized to repurchase up to
$100.0 million of its common stock.
During the recently-concluded third quarter of 2013, Pool
bought back 786,000 shares for a total of $41.8 million. In
the first half of October, Pool repurchased 99,000 shares,
leaving shares worth $29.3 million available for further
The share buyback authorization reflects the company's
confidence in its fundamentals. At the same time, the share
buyback will help the company reduce outstanding share count,
thereby increasing earnings per share and return on equity. Apart
from bolstering shareholder value, this strategic move will also
lift the relatively undervalued share price.
Apart from share buyback, Pool also has a dividend
distribution policy in place. The company will pay a quarterly
cash dividend of 19 cents per share on Nov 27, 2013 to holders of
record as of Nov 13. This dividend was hiked (19%) in May this
year, representing the eighth dividend increase by Pool since it
started paying dividends in 2004.
Headquartered in Covington, La., Pool Corporation is the
largest wholesale distributor of swimming pools and related
products. Currently, it operates 323 sales centers in North
America and Europe.
We appreciate Pool's efforts to consistently enhance long-term
shareholder value even in times of an economic downturn. We
believe that an increase in share buyback authorization and
dividend payment affirms the company's optimistic outlook and
Stepping into the last quarter of the year, which is
seasonally weak for the company, this Zacks Rank #4 (Sell) stock
is expected to underperform in the near term. However, Pool
appears to hold promise over the longer term based on some
commendable attributes like a steady turnaround of the Green
business and overall market share gains.
Some companies from the leisure and recreational products
sector that are worth a look at the current level include
Smith & Wesson Holding Corp.
Callaway Golf Co.
Polaris Industries Inc.
). While Smith & Wesson and Callaway Golf hold a Zacks Rank
#1 (Strong Buy), Polaris carries a Zacks Rank #2 (Buy).
CALLAWAY GOLF (ELY): Free Stock Analysis
POLARIS INDUS (PII): Free Stock Analysis
POOL CORP (POOL): Free Stock Analysis Report
SMITH & WESSON (SWHC): Free Stock Analysis
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