Dudley & Shanley Inc. Sells 26,447 Shares of Watsco, Inc. $WSO

Key Points

• Dudley & Shanley reduced its Watsco stake by 33.9%, selling 26,447 shares and retaining 51,565 shares valued at approximately $15.6 million. Institutional investors collectively own 89.71% of the company.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $395.50; ratings include two Buys, eight Holds and one Sell.
• Watsco shares traded at $294.77, near their 52-week low, after the company missed quarterly earnings and revenue estimates. The company declared a quarterly dividend of $3.30, equivalent to a 4.5% annualized yield, though its payout ratio is elevated at 114.48%.

Dudley & Shanley Inc. lowered its stake in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 33.9% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 51,565 shares of the construction company's stock after selling 26,447 shares during the quarter. Watsco makes up about 2.5% of Dudley & Shanley Inc.'s investment portfolio, making the stock its 21st largest holding. Dudley & Shanley Inc. owned approximately 0.13% of Watsco worth $15,608,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in WSO. Assetmark Inc. increased its holdings in shares of Watsco by 2.7% in the 1st quarter. Assetmark Inc. now owns 1,115 shares of the construction company's stock valued at $406,000 after acquiring an additional 29 shares during the last quarter. Bessemer Group Inc. raised its stake in Watsco by 10.5% during the first quarter. Bessemer Group Inc. now owns 496 shares of the construction company's stock worth $181,000 after acquiring an additional 47 shares during the period. Root Financial Partners LLC lifted its holdings in Watsco by 15.9% in the first quarter. Root Financial Partners LLC now owns 357 shares of the construction company's stock worth $130,000 after acquiring an additional 49 shares during the last quarter. Intrinsic Value Partners LLC lifted its holdings in Watsco by 2.9% in the first quarter. Intrinsic Value Partners LLC now owns 1,789 shares of the construction company's stock worth $651,000 after acquiring an additional 50 shares during the last quarter. Finally, World Investment Advisors boosted its stake in Watsco by 8.6% in the first quarter. World Investment Advisors now owns 660 shares of the construction company's stock valued at $240,000 after acquiring an additional 52 shares during the period. Institutional investors own 89.71% of the company's stock.

Analyst Upgrades and Downgrades

WSO has been the topic of a number of research analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Watsco in a research note on Tuesday, September 22nd. Zacks Research lowered Watsco from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 22nd. Robert W. Baird set a $400.00 price target on Watsco in a research report on Thursday, July 30th. Morgan Stanley upped their price objective on Watsco from $370.00 to $405.00 and gave the company an "equal weight" rating in a report on Friday, July 10th. Finally, DA Davidson decreased their target price on Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a research note on Thursday, July 30th. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $395.50.

Watsco Price Performance

WSO traded up $2.62 during trading on Tuesday, reaching $294.77. 127,388 shares of the stock traded hands, compared to its average volume of 450,364. The stock's 50-day simple moving average is $314.54 and its two-hundred day simple moving average is $365.33. Watsco, Inc. has a fifty-two week low of $285.62 and a fifty-two week high of $459.00. The stock has a market cap of $12.16 billion, a price-to-earnings ratio of 25.56 and a beta of 1.06.

Watsco (NYSE:WSO - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing analysts' consensus estimates of $4.41 by ($0.41). The firm had revenue of $2.10 billion for the quarter, compared to analysts' expectations of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.The firm's revenue for the quarter was up 2.1% on a year-over-year basis. During the same period last year, the business earned $4.52 earnings per share. Research analysts anticipate that Watsco, Inc. will post 12.21 earnings per share for the current fiscal year.

Watsco Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be issued a $3.30 dividend. The ex-dividend date is Friday, October 16th. This represents a $13.20 dividend on an annualized basis and a yield of 4.5%. Watsco's dividend payout ratio is currently 114.48%.

Watsco Profile

Watsco, Inc NYSE: WSO is a distributor of heating, air conditioning and refrigeration equipment and related products. The company supplies residential and commercial contractors with air conditioners, heat pumps, furnaces, refrigeration systems, indoor air-quality products, controls, replacement parts and other installation supplies.

Watsco serves the replacement and new-construction markets through a network of distribution centers, branches, showrooms and e-commerce platforms. Its customers primarily include HVAC and refrigeration contractors, dealers and other industry professionals, while its products are sourced from major manufacturers and distributed under leading industry brands.

Founded in 1956, Watsco has expanded through organic growth and acquisitions to become one of the largest HVAC and refrigeration distributors in North America.

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