Bahl & Gaynor Inc. Acquires 38,798 Shares of Watsco, Inc. $WSO

Key Points

• Bahl & Gaynor Inc. increased its stake in Watsco, Inc. by 15.4% during the first quarter, owning approximately 0.72% of the company worth about $147.57 million.
• Watsco recently reported a quarterly EPS of $4.52, missing estimates by $0.32, with revenue down 3.6% year-over-year.
• The company announced a quarterly dividend of $3.00 per share, leading to a 2.9% yield with a payout ratio of 92.02%.

Bahl & Gaynor Inc. grew its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 15.4% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 290,327 shares of the construction company's stock after buying an additional 38,798 shares during the quarter. Bahl & Gaynor Inc. owned approximately 0.72% of Watsco worth $147,573,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in WSO. Canada Pension Plan Investment Board acquired a new stake in shares of Watsco in the fourth quarter valued at $95,000. Natixis acquired a new stake in shares of Watsco in the fourth quarter valued at $125,000. MML Investors Services LLC increased its stake in shares of Watsco by 10.0% in the fourth quarter. MML Investors Services LLC now owns 3,210 shares of the construction company's stock valued at $1,521,000 after buying an additional 293 shares in the last quarter. Dark Forest Capital Management LP acquired a new stake in shares of Watsco in the fourth quarter valued at $390,000. Finally, Pinebridge Investments L.P. increased its stake in shares of Watsco by 42.7% in the fourth quarter. Pinebridge Investments L.P. now owns 8,955 shares of the construction company's stock valued at $4,244,000 after buying an additional 2,681 shares in the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Stock Performance

WSO traded down $8.2550 during midday trading on Monday, reaching $407.5450. 269,401 shares of the company were exchanged, compared to its average volume of 383,085. Watsco, Inc. has a one year low of $397.73 and a one year high of $571.41. The stock has a market capitalization of $16.53 billion, a P/E ratio of 31.25 and a beta of 0.95. The stock's 50-day simple moving average is $444.02 and its 200 day simple moving average is $468.89.

Watsco (NYSE:WSO - Get Free Report) last issued its earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). Watsco had a return on equity of 16.96% and a net margin of 7.08%.The company had revenue of $2.06 billion for the quarter, compared to the consensus estimate of $2.24 billion. During the same quarter last year, the business posted $4.49 EPS. Watsco's quarterly revenue was down 3.6% on a year-over-year basis. On average, research analysts anticipate that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were issued a dividend of $3.00 per share. The ex-dividend date was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a yield of 2.9%. Watsco's dividend payout ratio (DPR) is 92.02%.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. JPMorgan Chase & Co. lifted their price objective on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 27th. UBS Group lowered their price objective on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research report on Wednesday, June 25th. Morgan Stanley set a $505.00 price objective on Watsco in a research report on Wednesday, July 2nd. Finally, Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. One equities research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat.com, Watsco has an average rating of "Hold" and an average price target of $484.17.

Watsco Profile

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.