Baskin Financial Services Inc. Acquires 1,803 Shares of Watsco, Inc. $WSO

Key Points

• Baskin Financial Services Inc. increased its stake in Watsco, Inc. by 2.7%, owning a total of 69,344 shares which is approximately 2.3% of its portfolio, valued at about $30.6 million.
• Watsco's stock opened at $380.51, and the company reported a quarterly EPS of $4.52, missing expectations, with revenues down 3.6% year-over-year.
• The company announced a quarterly dividend of $3.00 per share, resulting in an annualized yield of 3.2%, with a payout ratio of 92.02%.

Baskin Financial Services Inc. grew its position in Watsco, Inc. (NYSE:WSO - Free Report) by 2.7% during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 69,344 shares of the construction company's stock after acquiring an additional 1,803 shares during the quarter. Watsco comprises about 2.3% of Baskin Financial Services Inc.'s portfolio, making the stock its 23rd largest position. Baskin Financial Services Inc. owned 0.17% of Watsco worth $30,623,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Opal Wealth Advisors LLC purchased a new stake in shares of Watsco in the first quarter valued at $25,000. WPG Advisers LLC purchased a new stake in shares of Watsco in the first quarter valued at $25,000. Ameritas Advisory Services LLC purchased a new stake in shares of Watsco in the second quarter valued at $26,000. TCTC Holdings LLC raised its stake in shares of Watsco by 115.4% in the first quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after acquiring an additional 30 shares during the period. Finally, Rossby Financial LCC purchased a new stake in shares of Watsco in the first quarter valued at $33,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Price Performance

WSO stock opened at $380.51 on Friday. The company has a market capitalization of $15.43 billion, a PE ratio of 29.18 and a beta of 0.94. Watsco, Inc. has a 12 month low of $378.35 and a 12 month high of $571.41. The firm's 50-day moving average is $405.31 and its 200 day moving average is $446.29.

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

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Thursday, October 16th will be given a dividend of $3.00 per share. The ex-dividend date of this dividend is Thursday, October 16th. This represents a $12.00 dividend on an annualized basis and a yield of 3.2%. Watsco's dividend payout ratio (DPR) is 92.02%.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. UBS Group reduced their target price on shares of Watsco from $450.00 to $425.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 23rd. Morgan Stanley reduced their target price on shares of Watsco from $505.00 to $460.00 and set an "equal weight" rating on the stock in a research note on Wednesday. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Watsco in a research note on Wednesday. One investment analyst has rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $472.50.

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.

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