Watsco, Inc. (NYSE:WSO) Stock Rated "Hold" by Sell-Side Analysts

Key Points

• Watsco holds a consensus “Hold” rating among ten analysts, with seven holds, two buys and one sell. The average 12-month price target is $373.62, though several firms recently lowered their targets.
• Shares opened at $294.24, near their 52-week low of $277.34 and well below the 52-week high of $459.00. The company’s latest quarterly results missed estimates, with EPS of $4.00 versus the $4.41 consensus and revenue of $2.10 billion versus $2.14 billion expected.
• Watsco declared a quarterly dividend of $3.30 per share, equivalent to $13.20 annually and a 4.5% yield. Institutional investors and hedge funds own approximately 89.71% of the company’s stock.

Watsco, Inc. (NYSE:WSO - Get Free Report) has earned a consensus rating of "Hold" from the ten research firms that are currently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 1-year price objective among analysts that have issued ratings on the stock in the last year is $373.62.

Several analysts have recently weighed in on WSO shares. Zacks Research downgraded shares of Watsco from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 22nd. DA Davidson cut their price target on shares of Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a report on Thursday, July 30th. Mizuho reduced their price objective on shares of Watsco from $350.00 to $325.00 and set a "neutral" rating for the company in a research report on Thursday, October 15th. Stephens reaffirmed an "overweight" rating and issued a $485.00 price objective on shares of Watsco in a report on Monday, August 17th. Finally, Morgan Stanley dropped their target price on Watsco from $370.00 to $330.00 and set an "equal weight" rating on the stock in a research report on Monday, October 12th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Bayban acquired a new stake in Watsco in the fourth quarter valued at $29,000. Western Wealth Management LLC acquired a new position in shares of Watsco during the 1st quarter worth $41,000. Versant Capital Management Inc grew its stake in shares of Watsco by 293.3% during the 2nd quarter. Versant Capital Management Inc now owns 118 shares of the construction company's stock worth $49,000 after purchasing an additional 88 shares during the period. N.E.W. Advisory Services LLC acquired a new position in shares of Watsco during the 2nd quarter worth $67,000. Finally, Jones Financial Companies Lllp purchased a new position in shares of Watsco in the 2nd quarter valued at about $71,000. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Price Performance

Shares of NYSE WSO opened at $294.24 on Tuesday. The stock has a fifty day moving average price of $307.07 and a 200 day moving average price of $359.98. Watsco has a 1-year low of $277.34 and a 1-year high of $459.00. The company has a market cap of $12.14 billion, a PE ratio of 25.52 and a beta of 1.06.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a net margin of 6.53% and a return on equity of 14.40%. The firm had revenue of $2.10 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same period in the prior year, the firm posted $4.52 earnings per share. The business's quarterly revenue was up 2.1% compared to the same quarter last year. Analysts anticipate that Watsco will post 12.19 earnings per share for the current fiscal year.

Watsco Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be issued a $3.30 dividend. This represents a $13.20 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Friday, October 16th. Watsco's dividend payout ratio (DPR) is currently 114.48%.

About Watsco

Watsco, Inc NYSE: WSO is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.

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