Legal & General Group Plc Invests $39.21 Million in Watsco, Inc. $WSO

Key Points

• Legal & General Group Plc purchased 94,084 Watsco shares worth approximately $39.21 million, representing about 0.23% of the company. Institutional investors and hedge funds collectively own 89.71% of Watsco.
• Watsco’s latest quarterly results missed expectations, with earnings per share of $4.00 versus the $4.41 consensus and revenue of $2.10 billion versus $2.14 billion expected. Shares opened at $310.89, well below their 52-week high of $459.00.
• The company pays a quarterly dividend of $3.30 per share, equivalent to a 4.2% annualized yield, while analysts maintain a consensus “Hold” rating and an average price target of $395.50.

Legal & General Group Plc bought a new position in Watsco, Inc. (NYSE:WSO - Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor bought 94,084 shares of the construction company's stock, valued at approximately $39,208,000. Legal & General Group Plc owned about 0.23% of Watsco at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in WSO. Torren Management LLC bought a new position in Watsco during the 4th quarter valued at $26,000. Bayban purchased a new stake in shares of Watsco in the fourth quarter valued at about $29,000. Bamco Inc. NY purchased a new position in Watsco during the fourth quarter worth about $35,000. Laurel Wealth Advisors LLC purchased a new stake in Watsco in the 4th quarter valued at about $37,000. Finally, Quarry LP bought a new position in shares of Watsco during the 4th quarter worth approximately $37,000. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Price Performance

NYSE:WSO opened at $310.89 on Friday. The company has a market capitalization of $12.82 billion, a P/E ratio of 26.96 and a beta of 1.05. The business has a fifty day simple moving average of $355.05 and a two-hundred day simple moving average of $382.50. Watsco, Inc. has a 1 year low of $295.75 and a 1 year high of $459.00.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing analysts' consensus estimates of $4.41 by ($0.41). Watsco had a net margin of 6.53% and a return on equity of 14.40%. The firm had revenue of $2.10 billion for the quarter, compared to analysts' expectations of $2.14 billion. During the same period in the prior year, the company earned $4.52 EPS. The firm's quarterly revenue was up 2.1% on a year-over-year basis. As a group, analysts anticipate that Watsco, Inc. will post 12.21 earnings per share for the current year.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Thursday, July 16th were given a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date was Thursday, July 16th. Watsco's dividend payout ratio (DPR) is currently 114.48%.

Analyst Upgrades and Downgrades

WSO has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Watsco in a report on Friday, June 26th. Robert W. Baird set a $400.00 price target on Watsco in a report on Thursday, July 30th. Stephens restated an "overweight" rating and issued a $485.00 price objective on shares of Watsco in a research note on Monday, August 17th. DA Davidson decreased their target price on Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Finally, Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Two research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $395.50.

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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