Carnegie Investment Counsel Sells 5,813 Shares of Watsco, Inc. $WSO

Key Points

• Carnegie Investment Counsel sold 5,813 shares, cutting its Watsco stake by 17.2% to 27,940 shares worth about $9.41 million; institutional investors now own roughly 89.7% of the company.
• Watsco missed quarterly expectations, reporting EPS of $1.68 versus the $1.94 consensus and revenue of $1.58 billion (down 9.9% year-over-year).
• Watsco raised its quarterly dividend to $3.30 (annualized $13.20, ~3.2% yield, payout ratio ~99%), while analysts maintain an average rating of "Hold" with an average price target of $409.

Carnegie Investment Counsel decreased its position in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 17.2% in the 4th quarter, according to its most recent 13F filing with the SEC. The firm owned 27,940 shares of the construction company's stock after selling 5,813 shares during the quarter. Carnegie Investment Counsel owned approximately 0.07% of Watsco worth $9,414,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Massachusetts Financial Services Co. MA grew its stake in shares of Watsco by 2.0% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,559 shares of the construction company's stock worth $525,000 after acquiring an additional 30 shares during the period. V Square Quantitative Management LLC bought a new position in shares of Watsco during the 4th quarter worth $137,000. Oak Thistle LLC purchased a new stake in Watsco during the 4th quarter worth about $782,000. Greenleaf Trust boosted its stake in Watsco by 27.1% in the 4th quarter. Greenleaf Trust now owns 1,012 shares of the construction company's stock worth $341,000 after purchasing an additional 216 shares during the period. Finally, Intrinsic Value Partners LLC bought a new position in Watsco in the 4th quarter worth about $586,000. Institutional investors own 89.71% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Zacks Research upgraded Watsco from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 25th. Morgan Stanley cut their target price on Watsco from $460.00 to $370.00 and set an "equal weight" rating for the company in a research note on Wednesday, January 14th. Mizuho set a $425.00 target price on Watsco in a research note on Wednesday, February 18th. JPMorgan Chase & Co. raised their target price on Watsco from $370.00 to $400.00 and gave the stock a "neutral" rating in a research note on Thursday, February 19th. Finally, UBS Group assumed coverage on Watsco in a research note on Monday, January 5th. They issued a "neutral" rating and a $370.00 target price for the company. One investment analyst has rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $409.00.

Watsco Stock Up 1.2%

NYSE:WSO opened at $408.86 on Friday. The stock has a market cap of $16.60 billion, a P/E ratio of 33.76 and a beta of 1.06. The business's 50-day moving average price is $393.13 and its two-hundred day moving average price is $373.45. Watsco, Inc. has a twelve month low of $323.05 and a twelve month high of $518.00.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings results on Tuesday, February 17th. The construction company reported $1.68 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.94 by ($0.26). The business had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.62 billion. Watsco had a net margin of 6.87% and a return on equity of 15.49%. The business's revenue was down 9.9% compared to the same quarter last year. During the same quarter last year, the business posted $2.37 EPS. On average, equities research analysts expect that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Thursday, April 16th will be given a dividend of $3.30 per share. This is a boost from Watsco's previous quarterly dividend of $3.00. The ex-dividend date is Thursday, April 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 3.2%. Watsco's dividend payout ratio is 99.09%.

About Watsco

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.

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