Pool’s Plunge: A Trader’s Tale

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Now, listen closely. Old Man Wedgewood – a fellow who normally wouldn’t give a dandelion puff a second glance – has decided he’s had enough of Pool Corporation. Dumped a whole ten million dollars’ worth of shares, he did! Thirty-two thousand, three hundred and twenty-two of ’em, vanished into the ether like bubbles in a witch’s brew. February the seventeenth, two thousand and twenty-six, that’s when the deed was done, according to the official scribbles at the SEC. A curious business, this.

What’s Been Happening

The paperwork tells a tale. Wedgewood, you see, completely emptied his pockets of Pool Corporation stock during the last quarter. Gone. Poof! Ten million dollars worth of swimming pool paraphernalia, swimming off into the financial unknown. A rather substantial vanishing act, wouldn’t you say?

A Bit More to Chew On

  • Top holdings after the sell-off:
    • NYSE: TSM: $56.12 million (10.5% of the hoard)
    • NASDAQ: GOOGL: $51.30 million (9.6% of the hoard)
    • NASDAQ: META: $45.64 million (8.5% of the hoard)
    • NASDAQ: AAPL: $38.85 million (7.3% of the hoard)
    • NASDAQ: MSFT: $37.48 million (7.0% of the hoard)
  • As of the seventeenth of February, Pool shares were languishing at $255.46 – a full 24.4% down over the year. Underperforming the S&P 500 by a rather gloomy 36.5 percentage points. And as of this morning? Even worse. A proper plummet, some 35% down on the year. A slippery slope, indeed.

The Company Itself

Metric Value
Price (as of market close 2/17/26) $255.46
Market Capitalization $9 billion
Revenue (TTM) $5.29 billion
Net Income (TTM) $412.12 million

What They Do

  • Pool Corporation peddles all sorts of swimming pool bits and bobs – supplies, equipment, maintenance things, and outdoor leisure items. Chemicals, spare parts, building materials – the whole shebang.
  • They don’t sell directly to you and me, oh no. It’s a business-to-business operation. They flog their wares to pool builders, remodelers, fancy retailers, and service chaps.
  • Their customers are mostly swimming pool professionals, snooty retailers, landscape gardeners, and big hotels.

They distribute this pool-related paraphernalia across North America, Europe, and Australia, using a network of sales centers and strong relationships with suppliers. A rather impressive operation, if you ignore the recent downturn.

What This Means for Those Who Play the Game

Pool managed to rake in $5.3 billion in sales during 2025, a slight dip from the previous year. Their gross margin remained steady at 29.7%. Earnings per share fell by 4%, landing at $10.85. They’re predicting somewhere between $10.85 and $11.15 for 2026. Not a business collapsing into a heap, mind you, but one navigating a bit of a tricky patch after the pandemic-fueled boom. Operating income dipped to $580.2 million from $617.2 million, and cash flow dwindled as they stockpiled inventory ahead of price hikes.

In a portfolio brimming with tech giants like TSMC, Alphabet, and Microsoft, Pool was a bit of a quirky, niche distributor. Selling it tidies things up, removes a bit of style drift, and reinforces a preference for reliable, long-term investments over businesses that rely on sunshine and swimming pools.

For those who play the long game, the real question isn’t about one quarter. It’s about how many houses are being sold, how many backyards are being renovated, and whether they can maintain their profit margins. If things stabilize, Pool’s scale and 456 sales centers could give them an edge. If not… well, patience might be required. Or perhaps a swift exit, before the water gets too murky.

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2026-02-27 18:14