LGT Fund Management Co Ltd. Makes New Investment in Watsco, Inc. (NYSE:WSO)

Key Points

• LGT Fund Management Co Ltd. has acquired a new stake in Watsco, Inc. worth approximately $686,000, indicating strong institutional interest in the company.
• Watsco reported a quarterly earnings per share of $4.52, missing expectations by $0.32, with a revenue decline of 3.6% year-over-year.
• The company declared a quarterly dividend of $3.00 per share, representing a 2.8% yield, although its payout ratio stands at an elevated 92.02%.

LGT Fund Management Co Ltd. bought a new position in Watsco, Inc. (NYSE:WSO - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 1,350 shares of the construction company's stock, valued at approximately $686,000.

Several other large investors have also added to or reduced their stakes in WSO. Bank of Montreal Can boosted its stake in Watsco by 4.1% in the 4th quarter. Bank of Montreal Can now owns 11,624 shares of the construction company's stock worth $5,508,000 after purchasing an additional 462 shares during the period. Bessemer Group Inc. grew its holdings in shares of Watsco by 8.3% during the fourth quarter. Bessemer Group Inc. now owns 341 shares of the construction company's stock worth $162,000 after purchasing an additional 26 shares in the last quarter. Sterling Capital Management LLC increased its position in shares of Watsco by 55.4% in the fourth quarter. Sterling Capital Management LLC now owns 2,050 shares of the construction company's stock worth $971,000 after purchasing an additional 731 shares during the last quarter. Sagespring Wealth Partners LLC purchased a new position in Watsco in the 4th quarter worth approximately $292,000. Finally, SageView Advisory Group LLC increased its stake in Watsco by 7.1% in the 4th quarter. SageView Advisory Group LLC now owns 465 shares of the construction company's stock worth $220,000 after purchasing an additional 31 shares during the period. Institutional investors own 89.71% of the company's stock.

Watsco Stock Performance

Shares of NYSE WSO traded down $7.41 during mid-day trading on Friday, hitting $414.21. 336,426 shares of the stock traded hands, compared to its average volume of 302,891. Watsco, Inc. has a 52 week low of $403.01 and a 52 week high of $571.41. The company has a market cap of $16.78 billion, a price-to-earnings ratio of 31.76 and a beta of 0.95. The stock has a fifty day moving average price of $447.68 and a 200-day moving average price of $472.01.

Watsco (NYSE:WSO - Get Free Report) last released 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 firm had revenue of $2.06 billion for the quarter, compared to the consensus estimate of $2.24 billion. During the same quarter in the prior year, the firm earned $4.49 earnings per share. The company's revenue for the quarter was down 3.6% compared to the same quarter last year. As a group, sell-side analysts predict that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Dividend Announcement

The company also recently declared 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 annualized dividend and a dividend yield of 2.9%. Watsco's payout ratio is currently 92.02%.

Wall Street Analyst Weigh In

A number of brokerages have commented on WSO. UBS Group decreased their price target on Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research note on Wednesday, June 25th. Mizuho set a $490.00 price target on Watsco in a research note on Thursday, April 24th. JPMorgan Chase & Co. boosted their target price on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research note on Tuesday, May 27th. Robert W. Baird reduced their target price on Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research note on Thursday, April 24th. Finally, Wall Street Zen raised Watsco from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Seven investment analysts have rated the stock with a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $484.17.

Watsco Company 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.