Mitsubishi UFJ Asset Management Co. Ltd. Increases Stock Position in Watsco, Inc. (NYSE:WSO)

Key Points

• Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in Watsco, Inc. by 10.0% in the first quarter, owning 27,392 shares valued at approximately $13.92 million.
• Watsco reported earnings per share (EPS) of $4.52 for the last quarter, missing estimates by $0.32, with a revenue of $2.06 billion that fell short of the $2.24 billion forecast.
• The company declared a quarterly dividend of $3.00 per share, resulting in an annualized yield of 2.9%, with a payout ratio of 92.02%.

Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 10.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 27,392 shares of the construction company's stock after purchasing an additional 2,484 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.07% of Watsco worth $13,923,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently modified their holdings of the company. OneDigital Investment Advisors LLC bought a new stake in Watsco during the 1st quarter worth approximately $266,000. Teacher Retirement System of Texas bought a new stake in Watsco during the 1st quarter worth approximately $2,588,000. Golden State Wealth Management LLC increased its holdings in Watsco by 109.4% during the 1st quarter. Golden State Wealth Management LLC now owns 222 shares of the construction company's stock worth $113,000 after acquiring an additional 116 shares during the period. SG Americas Securities LLC increased its holdings 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 increased its holdings in Watsco by 4.8% during the 1st quarter. Fifth Third Bancorp now owns 1,028 shares of the construction company's stock worth $523,000 after acquiring an additional 47 shares during the period. Institutional investors own 89.71% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Robert W. Baird decreased their target price on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a report on Thursday, April 24th. JPMorgan Chase & Co. upped their target price on shares of Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a report on Tuesday, May 27th. Morgan Stanley set a $505.00 target price on shares of Watsco in a report on Wednesday, July 2nd. Mizuho set a $490.00 target price on shares of Watsco in a report on Thursday, April 24th. Finally, Wall Street Zen raised shares of Watsco from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Seven equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, Watsco has an average rating of "Hold" and an average price target of $484.17.

Watsco Price Performance

WSO stock traded down $7.41 during midday trading on Friday, reaching $414.21. The company had a trading volume of 336,426 shares, compared to its average volume of 364,131. Watsco, Inc. has a 1 year low of $403.01 and a 1 year high of $571.41. The company has a market capitalization of $16.78 billion, a P/E ratio of 31.76 and a beta of 0.95. The firm has a 50-day moving average price of $447.06 and a 200-day moving average price of $471.51.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The construction company reported $4.52 EPS 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 company had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same period in the prior year, the firm earned $4.49 EPS. Watsco's quarterly revenue was down 3.6% on a year-over-year basis. On average, equities analysts predict that Watsco, Inc. will post 14.62 EPS for the current year.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders 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 yield of 2.9%. Watsco's dividend payout ratio is presently 92.02%.

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.