Watsco, Inc. $WSO Shares Bought by Dark Forest Capital Management LP

Key Points

• Dark Forest Capital Management LP increased its holdings in Watsco, Inc. by 912.5% during the 1st quarter, owning a total of 8,333 shares worth $4.236 million.
• Watsco reported earnings of $4.52 per share for the last quarter, missing estimates and showing a 3.6% decline in revenue year-over-year.
• The company declared a quarterly dividend of $3.00, representing an annualized dividend of $12.00 and a yield of 3.0%.

Dark Forest Capital Management LP increased its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 912.5% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 8,333 shares of the construction company's stock after acquiring an additional 7,510 shares during the quarter. Dark Forest Capital Management LP's holdings in Watsco were worth $4,236,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the business. Flputnam Investment Management Co. boosted its holdings in Watsco by 6.5% in the 1st quarter. Flputnam Investment Management Co. now owns 874 shares of the construction company's stock valued at $444,000 after purchasing an additional 53 shares during the last quarter. Royal Bank of Canada increased its stake in Watsco by 0.6% during the 1st quarter. Royal Bank of Canada now owns 229,597 shares of the construction company's stock worth $116,705,000 after buying an additional 1,482 shares during the period. Alamea Verwaltungs GmbH purchased a new stake in Watsco during the 1st quarter worth approximately $531,000. Vident Advisory LLC increased its stake in Watsco by 26.6% during the 1st quarter. Vident Advisory LLC now owns 1,892 shares of the construction company's stock worth $962,000 after buying an additional 397 shares during the period. Finally, Evergreen Capital Management LLC increased its position in shares of Watsco by 10.1% in the 1st quarter. Evergreen Capital Management LLC now owns 1,248 shares of the construction company's stock valued at $634,000 after purchasing an additional 114 shares during the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Stock Performance

Watsco stock traded up $5.02 during midday trading on Friday, hitting $408.41. 241,987 shares of the company's stock were exchanged, compared to its average volume of 282,389. Watsco, Inc. has a 12-month low of $390.36 and a 12-month high of $571.41. The stock has a market cap of $16.56 billion, a price-to-earnings ratio of 31.32 and a beta of 0.95. The firm's 50 day simple moving average is $439.49 and its 200 day simple moving average is $463.70.

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

Watsco Dividend Announcement

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

Wall Street Analyst Weigh In

A number of research analysts recently commented on the stock. UBS Group dropped 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. JPMorgan Chase & Co. increased their target price on shares of Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research report on Tuesday, May 27th. Finally, Morgan Stanley set a $505.00 target price on shares of Watsco in a research report on Wednesday, July 2nd. One analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Watsco currently has a consensus rating of "Hold" and an average price target of $484.17.

About Watsco

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.