Hamlin Capital Management LLC Boosts Holdings in Watsco, Inc. (NYSE:WSO)

Key Points

• Hamlin Capital Management LLC increased its stake in Watsco, Inc. by 1.8% in Q1, owning 351,271 shares valued at approximately $178.6 million, making it the firm's 11th largest position.
• Watsco reported earnings per share of $4.52 for the latest quarter, missing expectations by $0.32, and its revenue of $2.06 billion fell short of estimates of $2.24 billion.
• The company declared a quarterly dividend of $3.00 per share, bringing its annualized dividend to $12.00 with a yield of 2.8% and a payout ratio of 92.02%.

Hamlin Capital Management LLC raised its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 1.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 351,271 shares of the construction company's stock after acquiring an additional 6,251 shares during the period. Watsco accounts for approximately 4.3% of Hamlin Capital Management LLC's portfolio, making the stock its 11th largest position. Hamlin Capital Management LLC owned approximately 0.87% of Watsco worth $178,551,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. OneDigital Investment Advisors LLC purchased a new stake in Watsco in the first quarter valued at approximately $266,000. Teacher Retirement System of Texas acquired a new position in Watsco in the first quarter valued at $2,588,000. Golden State Wealth Management LLC boosted its stake in shares of Watsco by 109.4% during the first quarter. Golden State Wealth Management LLC now owns 222 shares of the construction company's stock worth $113,000 after buying an additional 116 shares during the period. SG Americas Securities LLC lifted its position in Watsco by 133.1% during the 1st quarter. SG Americas Securities LLC now owns 844 shares of the construction company's stock worth $429,000 after acquiring an additional 482 shares during the period. Finally, Fifth Third Bancorp boosted its holdings in shares of Watsco by 4.8% in the first quarter. Fifth Third Bancorp now owns 1,028 shares of the construction company's stock valued at $523,000 after acquiring an additional 47 shares in the last quarter. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Trading Up 2.2%

Shares of NYSE WSO opened at $431.94 on Thursday. The company has a market capitalization of $17.50 billion, a price-to-earnings ratio of 33.12 and a beta of 0.95. Watsco, Inc. has a twelve month low of $403.01 and a twelve month high of $571.41. The business has a 50 day simple moving average of $448.07 and a 200-day simple moving average of $472.48.

Watsco (NYSE:WSO - Get Free Report) last issued its earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share 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 business had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.24 billion. During the same period last year, the company posted $4.49 earnings per share. The firm's revenue for the quarter was down 3.6% on a year-over-year basis. As a group, equities analysts predict that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were given a dividend of $3.00 per share. The ex-dividend date was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a yield of 2.8%. Watsco's payout ratio is currently 92.02%.

Analyst Ratings Changes

WSO has been the topic of several research analyst reports. JPMorgan Chase & Co. boosted their target price on shares of Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 27th. Mizuho set a $490.00 price objective on shares of Watsco in a research report on Thursday, April 24th. Robert W. Baird lowered their price target on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research report on Thursday, April 24th. Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. Finally, Morgan Stanley set a $505.00 price target on Watsco in a research note on Wednesday, July 2nd. Seven equities research analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price 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.

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