Baird Financial Group Inc. Decreases Stake in Watsco, Inc. $WSO

Key Points

• Baird Financial Group Inc. reduced its stake in Watsco, Inc. by 2.3%, owning approximately 107,925 shares valued at $54.86 million at the end of the most recent quarter.
• Watsco's quarterly earnings report indicated a miss on analysts' estimates, with earnings per share of $4.52 compared to the expected $4.84, contributing to a 3.6% decline in year-over-year revenue.
• The company declared a quarterly dividend of $3.00 per share, resulting in an annualized dividend yield of 3.0%.

Baird Financial Group Inc. reduced its position in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 2.3% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 107,925 shares of the construction company's stock after selling 2,596 shares during the quarter. Baird Financial Group Inc. owned 0.27% of Watsco worth $54,858,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Manitou Investment Management Ltd. purchased a new position in shares of Watsco during the first quarter valued at approximately $25,000. Opal Wealth Advisors LLC bought a new position in shares of Watsco in the first quarter worth approximately $25,000. WPG Advisers LLC bought a new position in shares of Watsco in the first quarter worth approximately $25,000. TCTC Holdings LLC boosted its position in shares of Watsco by 115.4% in the first quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock worth $28,000 after purchasing an additional 30 shares during the period. Finally, City Holding Co. bought a new position in shares of Watsco in the first quarter worth approximately $29,000. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Stock Up 0.7%

Watsco stock traded up $2.99 during mid-day trading on Friday, reaching $406.38. 99,854 shares of the company's stock traded hands, compared to its average volume of 301,935. The company has a market cap of $16.48 billion, a price-to-earnings ratio of 31.22 and a beta of 0.95. The stock has a 50 day moving average of $440.04 and a two-hundred day moving average of $464.87. Watsco, Inc. has a 12-month low of $390.36 and a 12-month high of $571.41.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly 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 net margin of 7.08% and a return on equity of 16.96%. The business had revenue of $2.06 billion for the quarter, compared to analysts' expectations of $2.24 billion. During the same period in the previous year, the company earned $4.49 EPS. Watsco's revenue for the quarter was down 3.6% compared to the same quarter last year. As a group, sell-side analysts forecast that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Announces Dividend

The firm 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. This represents a $12.00 annualized dividend and a yield of 3.0%. The ex-dividend date was Wednesday, July 16th. Watsco's dividend payout ratio is presently 92.02%.

Analysts Set New Price Targets

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

Watsco Company 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.