Davidson Kahn Capital Management LLC Buys New Shares in Watsco, Inc. (NYSE:WSO)

Davidson Kahn Capital Management LLC acquired a new position in Watsco, Inc. (NYSE:WSO - Free Report) during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 561 shares of the construction company's stock, valued at approximately $266,000.

A number of other institutional investors and hedge funds have also bought and sold shares of WSO. Franklin Resources Inc. boosted its holdings in Watsco by 5.6% during the third quarter. Franklin Resources Inc. now owns 51,590 shares of the construction company's stock valued at $25,645,000 after purchasing an additional 2,738 shares in the last quarter. JPMorgan Chase & Co. lifted its stake in Watsco by 9.9% in the third quarter. JPMorgan Chase & Co. now owns 464,061 shares of the construction company's stock valued at $228,263,000 after buying an additional 41,845 shares in the last quarter. Janney Montgomery Scott LLC acquired a new position in shares of Watsco during the fourth quarter worth about $10,446,000. AEGON ASSET MANAGEMENT UK Plc increased its position in shares of Watsco by 15.1% during the 4th quarter. AEGON ASSET MANAGEMENT UK Plc now owns 139,157 shares of the construction company's stock worth $65,966,000 after purchasing an additional 18,279 shares during the last quarter. Finally, Conestoga Capital Advisors LLC grew its holdings in Watsco by 1.3% during the fourth quarter. Conestoga Capital Advisors LLC now owns 97,832 shares of the construction company's stock worth $46,362,000 after purchasing an additional 1,300 shares during the period. Institutional investors own 89.71% of the company's stock.

Watsco Stock Performance

WSO stock traded up $6.86 during midday trading on Monday, reaching $478.95. 230,677 shares of the company's stock traded hands, compared to its average volume of 254,680. The company has a 50-day moving average price of $494.54 and a two-hundred day moving average price of $497.60. The firm has a market capitalization of $19.35 billion, a PE ratio of 36.15 and a beta of 1.11. Watsco, Inc. has a 52 week low of $439.08 and a 52 week high of $571.42.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings results on Wednesday, April 23rd. The construction company reported $1.93 EPS for the quarter, missing the consensus estimate of $2.29 by ($0.36). Watsco had a net margin of 7.04% and a return on equity of 17.59%. The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.66 billion. During the same period in the previous year, the business earned $2.17 earnings per share. The firm's revenue for the quarter was down 2.2% on a year-over-year basis. As a group, analysts predict that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Tuesday, April 15th were issued a dividend of $3.00 per share. This is an increase from Watsco's previous quarterly dividend of $2.70. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.51%. The ex-dividend date of this dividend was Tuesday, April 15th. Watsco's payout ratio is currently 92.24%.

Analyst Ratings Changes

Several analysts have weighed in on the stock. UBS Group dropped their price objective on shares of Watsco from $475.00 to $455.00 and set a "neutral" rating for the company in a research note on Thursday, April 24th. Morgan Stanley started coverage on Watsco in a report on Monday, April 14th. They set an "equal weight" rating and a $515.00 price target on the stock. StockNews.com downgraded Watsco from a "hold" rating to a "sell" rating in a report on Friday, April 25th. Robert W. Baird reduced their target price on Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a research note on Thursday, April 24th. Finally, Raymond James assumed coverage on shares of Watsco in a research note on Friday, January 17th. They set a "market perform" rating for the company. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat, Watsco currently has a consensus rating of "Hold" and a consensus price target of $480.83.

About Watsco

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.