Goldman Sachs Group Inc. Buys 180,951 Shares of Watsco, Inc. $WSO

Key Points

• Goldman Sachs Group Inc. increased its stake in Watsco, Inc. by 62.8%, acquiring an additional 180,951 shares, bringing its total ownership to approximately 468,875 shares valued at $238.33 million.
• Watsco recently announced a quarterly dividend of $3.00 per share, resulting in an annualized yield of 3.0% and a dividend payout ratio of 92.02%.
• For the latest quarter, Watsco reported earnings per share of $4.52, missing analysts' expectations, while experiencing a 3.6% decline in revenue year-over-year with total earnings at $2.06 billion.

Goldman Sachs Group Inc. increased its position in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 62.8% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 468,875 shares of the construction company's stock after buying an additional 180,951 shares during the quarter. Goldman Sachs Group Inc. owned about 1.16% of Watsco worth $238,329,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Manitou Investment Management Ltd. acquired a new position in Watsco during the 1st quarter worth approximately $25,000. Opal Wealth Advisors LLC purchased a new stake in shares of Watsco in the first quarter worth approximately $25,000. WPG Advisers LLC purchased a new stake in shares of Watsco in the first quarter worth approximately $25,000. TCTC Holdings LLC raised its stake in shares of Watsco by 115.4% in the first quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock worth $28,000 after purchasing an additional 30 shares during the last quarter. Finally, City Holding Co. purchased a new stake in shares of Watsco in the first quarter worth approximately $29,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Stock Performance

NYSE WSO traded down $15.58 on Friday, hitting $381.84. 713,532 shares of the stock traded hands, compared to its average volume of 345,967. The business's fifty day moving average is $433.70 and its two-hundred day moving average is $460.28. Watsco, Inc. has a 12 month low of $378.35 and a 12 month high of $571.41. The firm has a market capitalization of $15.48 billion, a price-to-earnings ratio of 29.28 and a beta of 0.95.

Watsco (NYSE:WSO - Get Free Report) last released its earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). Watsco had a return on equity of 16.96% and a net margin of 7.08%.The firm had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same period in the prior year, the business earned $4.49 earnings per share. The business's quarterly revenue was down 3.6% compared to the same quarter last year. Analysts expect that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were given a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Wednesday, July 16th. Watsco's dividend payout ratio (DPR) is currently 92.02%.

Analyst Ratings Changes

Several brokerages have recently commented on WSO. JPMorgan Chase & Co. increased their price objective on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 27th. UBS Group lowered their price objective on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research note on Wednesday, June 25th. Finally, Morgan Stanley set a $505.00 price objective on Watsco in a research note on Wednesday, July 2nd. One analyst has rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average 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.