20,002 Shares in Watsco, Inc. $WSO Acquired by Korea Investment CORP

Key Points

• Korea Investment Corp acquired 20,002 Watsco shares during the second quarter, valued at approximately $8.3 million. Several other institutional investors also initiated positions, with institutions and hedge funds collectively owning 89.71% of the stock.
• Watsco’s shares opened at $310.64, near their 52-week low of $300.66 and below both their 50-day and 200-day moving averages. The company’s latest quarterly results missed estimates, reporting $4.00 in earnings per share and $2.10 billion in revenue.
• Watsco paid a quarterly dividend of $3.30 per share, equivalent to a 4.2% annualized yield, while analysts maintain a consensus “Hold” rating and an average price target of $395.50.

Korea Investment CORP purchased a new position in shares of Watsco, Inc. (NYSE:WSO - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 20,002 shares of the construction company's stock, valued at approximately $8,335,000.

A number of other hedge funds also recently made changes to their positions in the stock. Callan Family Office LLC purchased a new stake in shares of Watsco during the 2nd quarter valued at $2,619,000. Heartland Advisors Inc. purchased a new position in shares of Watsco in the 2nd quarter worth $20,778,000. Allworth Financial LP purchased a new position in shares of Watsco in the 2nd quarter worth $185,000. B. Metzler seel. Sohn & Co. AG acquired a new position in Watsco in the second quarter valued at $338,000. Finally, Advisors Capital Management LLC acquired a new position in Watsco in the second quarter valued at $8,286,000. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Trading Down 0.4%

NYSE WSO opened at $310.64 on Tuesday. The company's fifty day simple moving average is $361.71 and its 200-day simple moving average is $385.15. Watsco, Inc. has a 52 week low of $300.66 and a 52 week high of $459.00. The stock has a market cap of $12.81 billion, a P/E ratio of 26.94 and a beta of 1.05.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $2.14 billion. During the same period in the previous year, the business posted $4.52 earnings per share. Watsco's revenue for the quarter was up 2.1% on a year-over-year basis. On average, research analysts expect that Watsco, Inc. will post 12.21 EPS for the current fiscal year.

Watsco Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 16th were paid a dividend of $3.30 per share. The ex-dividend date was Thursday, July 16th. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. Watsco's dividend payout ratio (DPR) is currently 114.48%.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. Morgan Stanley upped their price target on Watsco from $370.00 to $405.00 and gave the stock an "equal weight" rating in a research note on Friday, July 10th. DA Davidson reduced their price objective on Watsco from $385.00 to $330.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Stephens reiterated an "overweight" rating and set a $485.00 target price on shares of Watsco in a report on Monday, August 17th. Robert W. Baird set a $400.00 target price on shares of Watsco in a research report on Thursday, July 30th. Finally, Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $395.50.

About Watsco

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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