Cibc World Market Inc. Invests $9.88 Million in Watsco, Inc. $WSO

Key Points

• CIBC World Market Inc. acquired 23,700 Watsco shares worth approximately $9.88 million, while institutional investors collectively own 89.71% of the company.
• Analysts maintain a consensus “Hold” rating with an average price target of $395.50, despite target revisions ranging from $330 to $485.
• Watsco reported quarterly EPS of $4.00, below the $4.41 estimate, while revenue rose 2.1% year over year to $2.10 billion. The company also paid a quarterly dividend of $3.30 per share, implying a 4.2% annualized yield.

Cibc World Market Inc. acquired a new stake in Watsco, Inc. (NYSE:WSO - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 23,700 shares of the construction company's stock, valued at approximately $9,877,000. Cibc World Market Inc. owned approximately 0.06% of Watsco as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Torren Management LLC purchased a new position in Watsco in the 4th quarter valued at about $26,000. Bayban purchased a new stake in shares of Watsco during the fourth quarter worth about $29,000. Bamco Inc. NY purchased a new stake in shares of Watsco during the fourth quarter worth about $35,000. Laurel Wealth Advisors LLC acquired a new position in shares of Watsco in the fourth quarter valued at approximately $37,000. Finally, Quarry LP acquired a new position in shares of Watsco in the fourth quarter valued at approximately $37,000. Institutional investors and hedge funds own 89.71% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Stephens restated an "overweight" rating and set a $485.00 target price 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. Morgan Stanley increased their price target on Watsco from $370.00 to $405.00 and gave the stock an "equal weight" rating in a research note on Friday, July 10th. Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, DA Davidson lowered their price objective on Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $395.50.

Watsco Price Performance

Shares of WSO stock opened at $310.64 on Tuesday. The firm's 50-day simple moving average is $361.71 and its 200-day simple moving average is $385.15. Watsco, Inc. has a 1-year low of $300.66 and a 1-year high of $459.00. The firm has a market cap of $12.81 billion, a P/E ratio of 26.94 and a beta of 1.05.

Watsco (NYSE:WSO - Get Free Report) last released its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) 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 company had revenue of $2.10 billion during the quarter, compared to analysts' expectations of $2.14 billion. During the same quarter in the previous year, the firm posted $4.52 earnings per share. Watsco's revenue for the quarter was up 2.1% compared to the same quarter last year. Analysts expect that Watsco, Inc. will post 12.21 earnings per share for the current fiscal year.

Watsco Announces Dividend

The company also recently disclosed 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. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date was Thursday, July 16th. Watsco's dividend payout ratio is presently 114.48%.

Watsco Profile

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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