Watsco, Inc. $WSO Shares Sold by Pembroke Management LTD

Key Points

• Pembroke Management LTD has reduced its stake in Watsco, Inc. by 40.6%, now holding 35,161 shares valued at approximately $17.87 million.
• Several other institutional investors have actively adjusted their positions, with GAMMA Investing LLC dramatically increasing theirs by 89,376.0% to 477,802 shares valued at $242.87 million.
• Watsco's stock price has recently fallen by 1.7%, and the company reported Q2 earnings of $4.52 per share, missing analyst estimates of $4.84.

Pembroke Management LTD cut its position in Watsco, Inc. (NYSE:WSO - Free Report) by 40.6% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 35,161 shares of the construction company's stock after selling 24,080 shares during the quarter. Watsco comprises approximately 2.6% of Pembroke Management LTD's holdings, making the stock its 16th biggest position. Pembroke Management LTD owned approximately 0.09% of Watsco worth $17,872,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Manitou Investment Management Ltd. purchased a new position in Watsco in the first quarter worth about $25,000. Opal Wealth Advisors LLC acquired a new stake in Watsco during the first quarter worth $25,000. WPG Advisers LLC purchased a new position in Watsco in the first quarter valued at $25,000. TCTC Holdings LLC increased its position in Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after acquiring an additional 30 shares during the period. Finally, City Holding Co. purchased a new position in shares of Watsco during the 1st quarter worth $29,000. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Stock Down 2.2%

Shares of WSO traded down $8.72 during trading hours on Tuesday, reaching $393.67. The stock had a trading volume of 348,950 shares, compared to its average volume of 302,502. The firm has a 50-day moving average of $442.01 and a 200 day moving average of $466.44. Watsco, Inc. has a 52 week low of $391.17 and a 52 week high of $571.41. The company has a market cap of $15.96 billion, a P/E ratio of 30.19 and a beta of 0.96.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 EPS 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 analyst estimates of $2.24 billion. During the same quarter in the prior year, the firm earned $4.49 earnings per share. The firm's revenue for the quarter was down 3.6% on a year-over-year basis. As a group, equities analysts expect that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Dividend Announcement

The business also recently announced 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 dividend on an annualized basis and a dividend yield of 3.0%. Watsco's dividend payout ratio is currently 92.02%.

Analyst Ratings Changes

WSO has been the topic of a number of research analyst reports. JPMorgan Chase & Co. raised their price objective on shares of Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research note on Tuesday, May 27th. Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Morgan Stanley set a $505.00 price target on shares of Watsco in a research report on Wednesday, July 2nd. Finally, UBS Group decreased their target price on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research note 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's stock. According to MarketBeat, Watsco presently 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.