Graham Capital Management L.P. Sells 1,700 Shares of Watsco, Inc. $WSO

Key Points

• Graham Capital Management L.P. reduced its holdings in Watsco, Inc. by 45.9%, now owning 2,000 shares valued at approximately $1.02 million.
• Watsco's latest earnings report showed an EPS of $4.52, missing estimates by $0.32, with a 3.6% year-over-year decline in revenue.
• Watsco recently declared a quarterly dividend of $3.00, resulting in an annual dividend yield of 3.1% and a dividend payout ratio of 92.02%.

Graham Capital Management L.P. lowered its stake in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 45.9% in the first quarter, according to its most recent disclosure with the SEC. The fund owned 2,000 shares of the construction company's stock after selling 1,700 shares during the period. Graham Capital Management L.P.'s holdings in Watsco were worth $1,017,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Centennial Wealth Advisory LLC raised its stake in Watsco by 2.9% in the 1st quarter. Centennial Wealth Advisory LLC now owns 776 shares of the construction company's stock worth $395,000 after purchasing an additional 22 shares in the last quarter. Cary Street Partners Financial LLC grew its holdings in shares of Watsco by 2.2% in the first quarter. Cary Street Partners Financial LLC now owns 1,073 shares of the construction company's stock valued at $545,000 after purchasing an additional 23 shares in the last quarter. Freedom Investment Management Inc. raised its holdings in Watsco by 4.8% in the first quarter. Freedom Investment Management Inc. now owns 504 shares of the construction company's stock worth $256,000 after purchasing an additional 23 shares in the last quarter. Valeo Financial Advisors LLC lifted its position in shares of Watsco by 2.3% during the 1st quarter. Valeo Financial Advisors LLC now owns 1,056 shares of the construction company's stock valued at $537,000 after buying an additional 24 shares in the last quarter. Finally, First Horizon Advisors Inc. increased its position in shares of Watsco by 4.6% during the 1st quarter. First Horizon Advisors Inc. now owns 569 shares of the construction company's stock worth $290,000 after purchasing an additional 25 shares during the last quarter. 89.71% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have commented on WSO shares. UBS Group cut their price target on Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 25th. Morgan Stanley set a $505.00 price target on Watsco in a research note on Wednesday, July 2nd. Finally, JPMorgan Chase & Co. lifted their price objective on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research note on Tuesday, May 27th. One equities research analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, Watsco currently has an average rating of "Hold" and a consensus price target of $484.17.

Watsco Price Performance

Shares of WSO traded up $5.02 during midday trading on Friday, reaching $408.41. The stock had a trading volume of 241,987 shares, compared to its average volume of 282,389. The firm's 50 day moving average price is $439.49 and its 200-day moving average price is $463.70. The company has a market capitalization of $16.56 billion, a P/E ratio of 31.32 and a beta of 0.95. Watsco, Inc. has a 52 week low of $390.36 and a 52 week high of $571.41.

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

Watsco Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Wednesday, July 16th were issued a $3.00 dividend. The ex-dividend date of this dividend was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.9%. Watsco's dividend payout ratio is presently 92.02%.

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.