Watsco, Inc. (NYSE:WSO) Shares Sold by Citigroup Inc.

Key Points

• Citigroup Inc. reduced its stake in Watsco, Inc. by 6.4%, owning 49,197 shares valued at approximately $25 million as of the latest reporting period.
• Watsco reported a miss in quarterly earnings with an EPS of $4.52, falling short of analyst expectations of $4.84, alongside a revenue decline of 3.6% year-over-year.
• Watsco recently announced a quarterly dividend of $3.00, equating to an annualized rate of $12.00, with a dividend yield of 2.8% and a payout ratio of 92.02%.

Citigroup Inc. trimmed its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 6.4% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 49,197 shares of the construction company's stock after selling 3,353 shares during the period. Citigroup Inc. owned about 0.12% of Watsco worth $25,007,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. Manitou Investment Management Ltd. purchased a new position in shares of Watsco during the 1st quarter worth approximately $25,000. Opal Wealth Advisors LLC purchased a new position in shares of Watsco during the 1st quarter worth approximately $25,000. TCTC Holdings LLC increased its stake in shares of Watsco by 115.4% during the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock worth $28,000 after purchasing an additional 30 shares in the last quarter. City Holding Co. purchased a new position in shares of Watsco during the 1st quarter worth approximately $29,000. Finally, Rossby Financial LCC purchased a new position in shares of Watsco during the 1st quarter worth approximately $33,000. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Trading Down 1.8%

Shares of WSO traded down $7.41 during mid-day trading on Friday, reaching $414.21. The company had a trading volume of 336,426 shares, compared to its average volume of 364,131. The stock has a market cap of $16.78 billion, a price-to-earnings ratio of 31.76 and a beta of 0.95. The firm has a fifty day simple moving average of $447.06 and a 200-day simple moving average of $471.51. Watsco, Inc. has a fifty-two week low of $403.01 and a fifty-two week high of $571.41.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). The company had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.24 billion. Watsco had a net margin of 7.08% and a return on equity of 16.96%. The firm's revenue for the quarter was down 3.6% compared to the same quarter last year. During the same quarter last year, the business earned $4.49 EPS. As a group, equities analysts predict 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 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 was Wednesday, July 16th. This represents a $12.00 annualized dividend and a dividend yield of 2.9%. Watsco's payout ratio is presently 92.02%.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on WSO. Robert W. Baird decreased their target price on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research report on Thursday, April 24th. Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Mizuho set a $490.00 target price on shares of Watsco in a research report on Thursday, April 24th. UBS Group decreased their target price on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 25th. Finally, Morgan Stanley set a $505.00 target price on shares of Watsco in a research report on Wednesday, July 2nd. Seven equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to MarketBeat, Watsco has a consensus rating of "Hold" and a consensus 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.