Nuveen LLC Takes Position in Watsco, Inc. $WSO

Key Points

• Nuveen LLC has made a new investment of approximately $41.22 million in Watsco, Inc., acquiring 81,089 shares during the first quarter.
• Watsco's stock recently reported a quarterly earnings per share of $4.52, missing analysts' estimates by $0.32, and experiencing a 3.6% decline in year-over-year revenue.
• The company declared a quarterly dividend of $3.00, resulting in a yield of 2.9%, with a payout ratio currently at 92.02%.

Nuveen LLC acquired a new position in Watsco, Inc. (NYSE:WSO - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The fund acquired 81,089 shares of the construction company's stock, valued at approximately $41,218,000. Nuveen LLC owned approximately 0.20% of Watsco at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of WSO. Mariner LLC boosted its holdings in Watsco by 4.6% in the fourth quarter. Mariner LLC now owns 5,649 shares of the construction company's stock valued at $2,677,000 after purchasing an additional 247 shares during the last quarter. XTX Topco Ltd purchased a new position in shares of Watsco during the 4th quarter valued at approximately $417,000. Jump Financial LLC purchased a new position in shares of Watsco during the 4th quarter valued at approximately $2,214,000. Evergreen Capital Management LLC grew its position in shares of Watsco by 3.1% during the fourth quarter. Evergreen Capital Management LLC now owns 1,134 shares of the construction company's stock worth $537,000 after buying an additional 34 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in shares of Watsco by 278.7% in the fourth quarter. Marshall Wace LLP now owns 17,800 shares of the construction company's stock worth $8,435,000 after buying an additional 13,100 shares during the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Stock Down 1.0%

Watsco stock traded down $4.2040 during mid-day trading on Wednesday, hitting $420.8260. 129,888 shares of the company's stock traded hands, compared to its average volume of 300,471. Watsco, Inc. has a one year low of $403.01 and a one year high of $571.41. The company has a market cap of $17.06 billion, a PE ratio of 32.36 and a beta of 0.95. The firm has a 50 day moving average price of $446.07 and a 200 day moving average price of $470.61.

Watsco (NYSE:WSO - Get Free Report) last posted 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 during the quarter, compared to analyst estimates of $2.24 billion. Watsco had a return on equity of 16.96% and a net margin of 7.08%.The business's revenue for the quarter was down 3.6% compared to the same quarter last year. During the same period in the previous year, the company earned $4.49 EPS. On average, analysts expect that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Wednesday, July 16th were paid a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date of this dividend was Wednesday, July 16th. Watsco's payout ratio is currently 92.02%.

Analysts Set New Price Targets

A number of research analysts have commented on WSO shares. Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Robert W. Baird reduced their price target on shares of Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research report on Thursday, April 24th. Mizuho set a $490.00 price objective on Watsco in a report on Thursday, April 24th. Morgan Stanley set a $505.00 price objective on Watsco in a research note on Wednesday, July 2nd. Finally, UBS Group dropped their price target on Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 25th. One research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $484.17.

About Watsco

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.