Birch Hill Investment Advisors LLC Makes New Investment in Watsco, Inc. $WSO

Key Points

• Birch Hill Investment Advisors purchased 8,120 Watsco shares worth approximately $2.46 million in the third quarter. Institutional investors collectively own 89.71% of the company.
• Watsco’s shares opened at $295.54, well below their 52-week high of $459.00. The company’s latest quarterly results missed expectations, reporting $4.00 in EPS versus the $4.41 consensus and revenue of $2.10 billion versus estimates of $2.14 billion.
• Watsco announced a quarterly dividend of $3.30, equivalent to a $13.20 annualized payout and a 4.5% yield. Analysts have a consensus “Hold” rating with an average price target of $373.62.

Birch Hill Investment Advisors LLC purchased a new stake in Watsco, Inc. (NYSE:WSO - Free Report) during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 8,120 shares of the construction company's stock, valued at approximately $2,458,000.

Several other large investors also recently bought and sold shares of the stock. 1834 Investment Advisors Co. lifted its stake in Watsco by 102.5% in the third quarter. 1834 Investment Advisors Co. now owns 9,241 shares of the construction company's stock valued at $2,797,000 after buying an additional 4,678 shares during the last quarter. TD Waterhouse Canada Inc. increased its holdings in shares of Watsco by 29.6% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 1,516 shares of the construction company's stock valued at $457,000 after acquiring an additional 346 shares during the period. Caledonia Investments PLC raised its position in Watsco by 12.2% in the 3rd quarter. Caledonia Investments PLC now owns 261,439 shares of the construction company's stock valued at $79,072,000 after purchasing an additional 28,512 shares during the last quarter. GK Wealth Management LLC purchased a new stake in Watsco in the 3rd quarter valued at $63,000. Finally, GAMMA Investing LLC raised its position in Watsco by 72.0% in the 3rd quarter. GAMMA Investing LLC now owns 3,355 shares of the construction company's stock valued at $1,016,000 after purchasing an additional 1,404 shares during the last quarter. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Stock Performance

Shares of NYSE:WSO opened at $295.54 on Friday. The company has a market cap of $12.19 billion, a P/E ratio of 25.63 and a beta of 1.06. Watsco, Inc. has a one year low of $277.34 and a one year high of $459.00. The business's 50-day simple moving average is $307.69 and its 200 day simple moving average is $360.39.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing the consensus estimate of $4.41 by ($0.41). The company had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%. The business's revenue was up 2.1% on a year-over-year basis. During the same period last year, the firm posted $4.52 earnings per share. Analysts predict that Watsco, Inc. will post 12.19 earnings per share for the current year.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be paid a $3.30 dividend. The ex-dividend date is Friday, October 16th. This represents a $13.20 annualized dividend and a dividend yield of 4.5%. Watsco's dividend payout ratio is 114.48%.

Analyst Upgrades and Downgrades

Several research firms have commented on WSO. Mizuho reduced their price objective on Watsco from $350.00 to $325.00 and set a "neutral" rating for the company in a research note on Thursday. Stephens restated an "overweight" rating and set a $485.00 target price on shares of Watsco in a research report on Monday, August 17th. Robert W. Baird set a $400.00 price target on shares of Watsco in a research report on Thursday, July 30th. Zacks Research cut Watsco from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 22nd. Finally, DA Davidson decreased their target price on Watsco from $385.00 to $330.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Watsco currently has an average rating of "Hold" and an average target price of $373.62.

Watsco Profile

Watsco, Inc NYSE: WSO is a distributor of heating, air conditioning and refrigeration equipment and related products. The company supplies residential and commercial contractors with air conditioners, heat pumps, furnaces, refrigeration systems, indoor air-quality products, controls, replacement parts and other installation supplies.

Watsco serves the replacement and new-construction markets through a network of distribution centers, branches, showrooms and e-commerce platforms. Its customers primarily include HVAC and refrigeration contractors, dealers and other industry professionals, while its products are sourced from major manufacturers and distributed under leading industry brands.

Founded in 1956, Watsco has expanded through organic growth and acquisitions to become one of the largest HVAC and refrigeration distributors in North America.

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