Connor Clark & Lunn Investment Management Ltd. Reduces Position in Watsco, Inc. (NYSE:WSO)

Key Points

• Connor Clark & Lunn Investment Management Ltd. reduced its stake in Watsco, Inc. by 7.7%, bringing its total holdings to 16,682 shares valued at approximately $8.48 million.
• The company's latest earnings report revealed a missed EPS estimate of $4.52 compared to the anticipated $4.84, alongside a quarterly revenue decline of 3.6% year-over-year.
• Watsco announced a quarterly dividend of $3.00 per share, reflecting an annualized dividend of $12.00 and a dividend yield of 2.9%.

Connor Clark & Lunn Investment Management Ltd. cut its position in Watsco, Inc. (NYSE:WSO - Free Report) by 7.7% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 16,682 shares of the construction company's stock after selling 1,393 shares during the period. Connor Clark & Lunn Investment Management Ltd.'s holdings in Watsco were worth $8,479,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Cynosure Group LLC grew its stake in Watsco by 16.0% during the first quarter. Cynosure Group LLC now owns 732 shares of the construction company's stock valued at $372,000 after acquiring an additional 101 shares in the last quarter. Townsquare Capital LLC increased its holdings in Watsco by 3.5% in the 1st quarter. Townsquare Capital LLC now owns 25,071 shares of the construction company's stock valued at $12,743,000 after acquiring an additional 859 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Watsco by 10.0% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 27,392 shares of the construction company's stock valued at $13,923,000 after acquiring an additional 2,484 shares during the last quarter. Ontario Teachers Pension Plan Board increased its holdings in Watsco by 45.8% in the 1st quarter. Ontario Teachers Pension Plan Board now owns 3,948 shares of the construction company's stock valued at $2,007,000 after acquiring an additional 1,241 shares during the last quarter. Finally, Deutsche Bank AG increased its holdings in Watsco by 0.8% in the 1st quarter. Deutsche Bank AG now owns 55,391 shares of the construction company's stock valued at $28,155,000 after acquiring an additional 421 shares during the last quarter. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Price Performance

Shares of NYSE:WSO traded down $5.43 during trading hours on Friday, hitting $416.20. The company's stock had a trading volume of 184,035 shares, compared to its average volume of 301,866. Watsco, Inc. has a 52 week low of $403.01 and a 52 week high of $571.41. The company has a market capitalization of $16.86 billion, a price-to-earnings ratio of 31.92 and a beta of 0.95. The firm's fifty day moving average price is $447.68 and its 200 day moving average price is $472.01.

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

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were paid a dividend of $3.00 per share. This represents a $12.00 annualized dividend and a dividend yield of 2.9%. The ex-dividend date was Wednesday, July 16th. Watsco's payout ratio is 92.02%.

Analyst Ratings Changes

WSO has been the topic of a number of research reports. Mizuho set a $490.00 price target on shares of Watsco in a report on Thursday, April 24th. Robert W. Baird reduced their price target on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a report on Thursday, April 24th. JPMorgan Chase & Co. lifted their price objective on shares of Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Morgan Stanley set a $505.00 price objective on shares of Watsco in a report on Wednesday, July 2nd. Finally, Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. Seven analysts have rated the stock with a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, Watsco currently has a consensus rating of "Hold" and a consensus target price of $484.17.

Watsco Company 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.