King Luther Capital Management Corp Purchases 3,619 Shares of Watsco, Inc. (NYSE:WSO)

Key Points

• King Luther Capital Management Corp increased its holdings in Watsco, Inc. by 2.9%, owning 130,494 shares valued at approximately $66.33 million as of its latest SEC filing.
• Watsco's earnings miss analysts' expectations, reporting $4.52 EPS versus the $4.84 consensus, resulting in a 3.6% revenue decline year-over-year.
• Watsco declared a $3.00 quarterly dividend, resulting in a yield of 2.9% and a payout ratio of 92.02%.

King Luther Capital Management Corp raised its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 2.9% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 130,494 shares of the construction company's stock after acquiring an additional 3,619 shares during the quarter. King Luther Capital Management Corp owned approximately 0.32% of Watsco worth $66,330,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently made changes to their positions in WSO. Manitou Investment Management Ltd. acquired a new position in shares of Watsco in the first quarter valued at approximately $25,000. Opal Wealth Advisors LLC acquired a new position in shares of Watsco in the first quarter valued at approximately $25,000. TCTC Holdings LLC increased 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 valued at $28,000 after buying an additional 30 shares during the period. City Holding Co. acquired a new position in shares of Watsco in the first quarter valued at approximately $29,000. Finally, Rossby Financial LCC acquired a new position in shares of Watsco in the first quarter valued at approximately $33,000. Institutional investors own 89.71% of the company's stock.

Watsco Price Performance

Shares of Watsco stock traded down $9.79 during trading on Thursday, reaching $422.79. 104,520 shares of the company traded hands, compared to its average volume of 302,007. The firm has a market capitalization of $17.13 billion, a PE ratio of 32.40 and a beta of 0.95. Watsco, Inc. has a 1-year low of $403.01 and a 1-year high of $571.41. The company has a 50 day moving average price of $448.07 and a 200-day moving average price of $472.48.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data 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). The company had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.24 billion. Watsco had a net margin of 7.08% and a return on equity of 16.96%. Watsco's revenue for the quarter was down 3.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.49 EPS. Equities research analysts expect that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Dividend Announcement

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

Wall Street Analyst Weigh In

WSO has been the subject of several recent research reports. Morgan Stanley set a $505.00 price objective on Watsco in a research note on Wednesday, July 2nd. 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. Wall Street Zen raised Watsco from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Robert W. Baird decreased their target price on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a research report on Thursday, April 24th. Finally, Mizuho set a $490.00 target price on shares of Watsco in a research report on Thursday, April 24th. Seven research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target 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.