Carderock Capital Management Inc. Acquires 996 Shares of Watsco, Inc. $WSO

Key Points

• Carderock Capital Management Inc. increased its holdings in Watsco, Inc. by 7.7% after acquiring an additional 996 shares, bringing its total ownership to 13,848 shares valued at $7,039,000.
• Watsco reported $4.52 earnings per share for the quarter, missing estimates of $4.84, with revenue down 3.6% year-over-year.
• The company recently announced a $3.00 dividend per share, reflecting a 3.1% yield and a payout ratio of 92.02%.

Carderock Capital Management Inc. increased its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 7.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,848 shares of the construction company's stock after purchasing an additional 996 shares during the period. Carderock Capital Management Inc.'s holdings in Watsco were worth $7,039,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the business. Advisors Capital Management LLC lifted its stake in Watsco by 0.4% in the 1st quarter. Advisors Capital Management LLC now owns 16,570 shares of the construction company's stock valued at $8,423,000 after acquiring an additional 70 shares in the last quarter. Geneos Wealth Management Inc. lifted its stake in Watsco by 15.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 711 shares of the construction company's stock valued at $361,000 after acquiring an additional 97 shares in the last quarter. Belpointe Asset Management LLC lifted its stake in Watsco by 2.5% in the 1st quarter. Belpointe Asset Management LLC now owns 2,803 shares of the construction company's stock valued at $1,425,000 after acquiring an additional 69 shares in the last quarter. Focus Partners Wealth lifted its stake in Watsco by 10.5% in the 1st quarter. Focus Partners Wealth now owns 8,524 shares of the construction company's stock valued at $4,333,000 after acquiring an additional 810 shares in the last quarter. Finally, Flaharty Asset Management LLC bought a new stake in Watsco in the 1st quarter valued at approximately $51,000. Institutional investors own 89.71% of the company's stock.

Watsco Stock Down 2.7%

NYSE:WSO opened at $390.89 on Thursday. The firm has a market capitalization of $15.85 billion, a price-to-earnings ratio of 29.98 and a beta of 0.95. Watsco, Inc. has a twelve month low of $386.49 and a twelve month high of $571.41. The stock's 50 day moving average price is $436.42 and its two-hundred day moving average price is $461.80.

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

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were issued a dividend of $3.00 per share. The ex-dividend date of this dividend was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.1%. Watsco's payout ratio is presently 92.02%.

Analysts Set New Price Targets

Several research firms have commented on WSO. UBS Group cut their target price on Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research note on Wednesday, June 25th. Morgan Stanley set a $505.00 target price on Watsco in a research note on Wednesday, July 2nd. Finally, JPMorgan Chase & Co. boosted their target price on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research note on Tuesday, May 27th. One investment analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, Watsco currently has an average rating of "Hold" and an average target price 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.

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