Motley Fool Asset Management LLC Reduces Stake in Watsco, Inc. (NYSE:WSO)

Key Points

• Motley Fool Asset Management LLC has reduced its stake in Watsco, Inc. by 15.1%, now owning approximately 0.11% of the company, valued at $22.96 million.
• Watsco's recent earnings report showcased an EPS of $4.52, missing expectations by ($0.32) and showing a 3.6% decline in revenue from the previous year.
• The company announced a quarterly dividend of $3.00 per share, with an annualized yield of 2.9% and a payout ratio of 92.02%.

Motley Fool Asset Management LLC cut its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 15.1% in the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 45,175 shares of the construction company's stock after selling 8,031 shares during the quarter. Watsco comprises 1.3% of Motley Fool Asset Management LLC's holdings, making the stock its 16th largest position. Motley Fool Asset Management LLC owned 0.11% of Watsco worth $22,962,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. OneDigital Investment Advisors LLC purchased a new stake in Watsco in the first quarter valued at about $266,000. Teacher Retirement System of Texas purchased a new stake in Watsco in the first quarter valued at approximately $2,588,000. Golden State Wealth Management LLC boosted its position in Watsco by 109.4% in the first quarter. Golden State Wealth Management LLC now owns 222 shares of the construction company's stock valued at $113,000 after buying an additional 116 shares during the last quarter. SG Americas Securities LLC boosted its position in Watsco by 133.1% in the first quarter. SG Americas Securities LLC now owns 844 shares of the construction company's stock valued at $429,000 after buying an additional 482 shares during the last quarter. Finally, Fifth Third Bancorp boosted its position in 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 buying an additional 47 shares during the last quarter. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Stock Down 2.5%

Shares of Watsco stock traded down $10.62 on Thursday, reaching $421.96. The company's stock had a trading volume of 206,340 shares, compared to its average volume of 302,666. The company has a market capitalization of $17.09 billion, a P/E ratio of 32.36 and a beta of 0.95. Watsco, Inc. has a 52-week low of $403.01 and a 52-week high of $571.41. The stock 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 posted its quarterly earnings data 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 net margin of 7.08% and a return on equity of 16.96%. The business had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same quarter last year, the firm earned $4.49 earnings per share. The firm's quarterly revenue was down 3.6% compared to the same quarter last year. Sell-side analysts forecast that Watsco, Inc. will post 14.62 earnings per share 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. This represents a $12.00 annualized dividend and a dividend yield of 2.8%. The ex-dividend date was Wednesday, July 16th. Watsco's payout ratio is presently 92.02%.

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. Robert W. Baird dropped their target price on Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research report on Thursday, April 24th. JPMorgan Chase & Co. boosted their price target on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Morgan Stanley set a $505.00 price target on Watsco in a report on Wednesday, July 2nd. UBS Group decreased their price target on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a report on Wednesday, June 25th. Finally, Mizuho set a $490.00 price target on Watsco in a report on Thursday, April 24th. Seven equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the company presently has a consensus 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.