Bank of America Corp DE Invests $119.29 Million in Watsco, Inc. $WSO

Key Points

• Bank of America acquired a new $119.3 million stake in Watsco during the second quarter, purchasing 286,256 shares and representing approximately 0.69% ownership.
• Institutional investors own 89.71% of Watsco, while analyst sentiment remains cautious: the stock carries an average “Hold” rating and a consensus price target of $395.50.
• Watsco’s latest quarterly results missed expectations, with earnings of $4.00 per share versus $4.41 forecast and revenue of $2.10 billion versus $2.14 billion expected. The company maintains a quarterly dividend of $3.30 per share, equivalent to a 4.2% yield.

Bank of America Corp DE acquired a new position in shares of Watsco, Inc. (NYSE:WSO - Free Report) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor acquired 286,256 shares of the construction company's stock, valued at approximately $119,291,000. Bank of America Corp DE owned 0.69% of Watsco as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently bought and sold shares of the business. Capital International Investors grew its holdings in shares of Watsco by 103.1% in the fourth quarter. Capital International Investors now owns 4,642,893 shares of the construction company's stock valued at $1,564,423,000 after purchasing an additional 2,356,998 shares in the last quarter. Geode Capital Management LLC boosted its stake in Watsco by 0.8% during the 4th quarter. Geode Capital Management LLC now owns 638,014 shares of the construction company's stock worth $214,373,000 after purchasing an additional 5,176 shares during the period. Markel Group Inc. increased its position in Watsco by 0.8% in the 1st quarter. Markel Group Inc. now owns 582,169 shares of the construction company's stock valued at $211,787,000 after acquiring an additional 4,500 shares during the period. Captrust Financial Advisors lifted its position in Watsco by 1.5% during the 4th quarter. Captrust Financial Advisors now owns 396,514 shares of the construction company's stock worth $133,605,000 after acquiring an additional 6,034 shares during the period. Finally, Norges Bank purchased a new position in shares of Watsco in the 4th quarter valued at approximately $110,853,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Wall Street Analysts Forecast Growth

WSO has been the topic of a number of analyst reports. DA Davidson lowered their price objective on Watsco from $385.00 to $330.00 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Robert W. Baird set a $400.00 price objective on Watsco in a research note on Thursday, July 30th. Stephens reaffirmed an "overweight" rating and issued a $485.00 price objective on shares of Watsco in a research report on Monday, August 17th. Weiss Ratings reiterated a "hold (c)" rating on shares of Watsco in a report on Friday, June 26th. Finally, Morgan Stanley boosted their price objective on Watsco from $370.00 to $405.00 and gave the stock an "equal weight" rating in a research note on Friday, July 10th. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, Watsco has an average rating of "Hold" and an average price target of $395.50.

Watsco Stock Performance

NYSE:WSO opened at $312.17 on Friday. The company has a market capitalization of $12.88 billion, a price-to-earnings ratio of 27.07 and a beta of 1.05. Watsco, Inc. has a 52 week low of $295.75 and a 52 week high of $459.00. The company has a 50-day moving average of $328.74 and a 200-day moving average of $371.46.

Watsco (NYSE:WSO - Get Free Report) last announced its 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 business had revenue of $2.10 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter last year, the business posted $4.52 earnings per share. The business's quarterly revenue was up 2.1% compared to the same quarter last year. Sell-side analysts forecast that Watsco, Inc. will post 12.21 EPS for the current year.

Watsco Dividend Announcement

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

Watsco Company Profile

Watsco, Inc is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and commercial contractors with air conditioners, furnaces, heat pumps, refrigeration systems, ductwork, thermostats, controls, tools, replacement parts and other installation supplies.

Through its distribution network and digital sales platforms, Watsco serves HVAC/R contractors, dealers and other customers primarily across the United States, as well as in Canada and Puerto Rico.

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