11,446 Shares in Watsco, Inc. $WSO Purchased by Gateway Investment Advisers LLC

Key Points

• Gateway Investment Advisers LLC bought a new position of 11,446 Watsco shares in Q4 (about $3.86 million), and institutional investors collectively own roughly 89.71% of the stock.
• Watsco raised its quarterly dividend to $3.30 (annualized $13.20) for a yield of 3.1%, though the dividend payout ratio is high at 109.54%.
• The company beat earnings expectations last quarter with $1.87 EPS vs. $1.73 expected and $1.53 billion in revenue vs. $1.49 billion, while analysts carry an average "Hold" rating and a consensus target near $399.83.

Gateway Investment Advisers LLC purchased a new position in Watsco, Inc. (NYSE:WSO - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 11,446 shares of the construction company's stock, valued at approximately $3,857,000.

Other institutional investors also recently bought and sold shares of the company. Torren Management LLC bought a new position in Watsco in the fourth quarter worth about $26,000. Laurel Wealth Advisors LLC bought a new position in Watsco in the fourth quarter worth about $37,000. Steigerwald Gordon & Koch Inc. bought a new position in Watsco in the third quarter worth about $49,000. First Horizon Corp bought a new position in Watsco in the third quarter worth about $51,000. Finally, Bayforest Capital Ltd bought a new position in Watsco in the third quarter worth about $57,000. 89.71% of the stock is owned by institutional investors.

Watsco Stock Performance

Shares of NYSE WSO opened at $428.92 on Friday. Watsco, Inc. has a fifty-two week low of $323.05 and a fifty-two week high of $496.25. The company has a 50 day simple moving average of $399.21 and a two-hundred day simple moving average of $378.37. The company has a market capitalization of $17.41 billion, a price-to-earnings ratio of 35.59 and a beta of 1.12.

Watsco (NYSE:WSO - Get Free Report) last announced its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share for the quarter, beating analysts' consensus estimates of $1.73 by $0.14. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The business had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same quarter last year, the firm earned $1.93 earnings per share. The business's revenue for the quarter was up .1% on a year-over-year basis. On average, analysts forecast that Watsco, Inc. will post 12.62 earnings per share for the current fiscal year.

Watsco Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Thursday, April 16th were issued a dividend of $3.30 per share. The ex-dividend date was Thursday, April 16th. This is a positive change from Watsco's previous quarterly dividend of $3.00. This represents a $13.20 dividend on an annualized basis and a dividend yield of 3.1%. Watsco's dividend payout ratio is currently 109.54%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on WSO shares. Wall Street Zen raised shares of Watsco from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Zacks Research raised shares of Watsco from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 25th. Morgan Stanley decreased their target price on shares of Watsco from $460.00 to $370.00 and set an "equal weight" rating for the company in a research note on Wednesday, January 14th. Stephens raised their target price on shares of Watsco from $475.00 to $485.00 and gave the company an "overweight" rating in a research note on Wednesday, April 29th. Finally, Mizuho set a $425.00 target price on shares of Watsco in a research note on Wednesday, February 18th. One analyst has rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $399.83.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.

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