Grace & White Inc. NY Has $14.22 Million Position in Watsco, Inc. $WSO

Key Points

• Grace & White Inc. NY increased its stake in Watsco by 8.3% to 42,200 shares, a holding worth about $14.22 million that represents 2.5% of the firm's portfolio and is its 11th largest position.
• Watsco missed quarterly estimates, reporting $1.68 EPS vs. $1.94 expected and $1.58 billion in revenue (down 9.9% year-over-year), with a net margin of 6.87%.
• Watsco raised its quarterly dividend to $3.30 (annualized $13.20), yielding about 3.1%, though the dividend payout ratio is high at 109%.

Grace & White Inc. NY boosted its stake in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 8.3% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 42,200 shares of the construction company's stock after acquiring an additional 3,217 shares during the quarter. Watsco accounts for 2.5% of Grace & White Inc. NY's portfolio, making the stock its 11th largest position. Grace & White Inc. NY owned about 0.10% of Watsco worth $14,219,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently bought and sold shares of WSO. SJS Investment Consulting Inc. raised its stake in Watsco by 2,366.7% during the third quarter. SJS Investment Consulting Inc. now owns 74 shares of the construction company's stock worth $30,000 after acquiring an additional 71 shares in the last quarter. TruNorth Capital Management LLC acquired a new stake in shares of Watsco in the third quarter valued at $37,000. Steigerwald Gordon & Koch Inc. acquired a new stake in shares of Watsco in the third quarter valued at $49,000. First Horizon Corp acquired a new stake in shares of Watsco in the third quarter valued at $51,000. Finally, Bayforest Capital Ltd acquired a new stake in shares of Watsco in the third quarter valued at $57,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Stock Up 1.3%

Shares of WSO stock opened at $421.26 on Friday. The stock has a 50-day moving average price of $394.50 and a 200 day moving average price of $374.19. The firm has a market cap of $17.10 billion, a price-to-earnings ratio of 34.79 and a beta of 1.06. Watsco, Inc. has a 12 month low of $323.05 and a 12 month high of $513.54.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The construction company reported $1.68 EPS for the quarter, missing analysts' consensus estimates of $1.94 by ($0.26). The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.62 billion. Watsco had a return on equity of 15.49% and a net margin of 6.87%.Watsco's revenue for the quarter was down 9.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.37 earnings per share. Sell-side analysts predict that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 30th. Investors of record on Thursday, April 16th will be given a $3.30 dividend. The ex-dividend date is Thursday, April 16th. This is a positive change from Watsco's previous quarterly dividend of $3.00. This represents a $13.20 dividend on an annualized basis and a yield of 3.1%. Watsco's dividend payout ratio is 109.00%.

Analysts Set New Price Targets

WSO has been the subject of a number of research reports. UBS Group initiated coverage on Watsco in a research note on Monday, January 5th. They issued a "neutral" rating and a $370.00 target price for the company. Morgan Stanley lowered their target price on Watsco from $460.00 to $370.00 and set an "equal weight" rating for the company in a research note on Wednesday, January 14th. Zacks Research upgraded Watsco from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 25th. JPMorgan Chase & Co. raised their target price on Watsco from $370.00 to $400.00 and gave the company a "neutral" rating in a research note on Thursday, February 19th. Finally, Mizuho set a $425.00 target price on Watsco in a research note on Wednesday, February 18th. One research analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $409.00.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.

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