Schwartz Investment Counsel Inc. Sells 142,000 Shares of Watsco, Inc. $WSO

Key Points

• Schwartz Investment Counsel reduced its Watsco stake by 84.9% in the first quarter, selling 142,000 shares and leaving it with 25,185 shares valued at about $9.16 million.
• Watsco reported stronger-than-expected quarterly results, posting EPS of $1.87 versus the $1.73 consensus estimate and revenue of $1.53 billion versus expectations of $1.49 billion.
• The company also announced a quarterly dividend of $3.30 per share, equal to an annualized yield of 3.4%, while Wall Street currently rates the stock a consensus Hold with an average target price of $402.71.

Schwartz Investment Counsel Inc. cut its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 84.9% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 25,185 shares of the construction company's stock after selling 142,000 shares during the period. Schwartz Investment Counsel Inc. owned about 0.06% of Watsco worth $9,162,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of WSO. Torren Management LLC bought a new position in Watsco in the 4th quarter valued at $26,000. Bayban bought a new stake in shares of Watsco during the fourth quarter worth $29,000. Bamco Inc. NY bought a new stake in shares of Watsco during the fourth quarter worth $35,000. Laurel Wealth Advisors LLC acquired a new stake in shares of Watsco in the fourth quarter valued at $37,000. Finally, Quarry LP bought a new position in shares of Watsco in the fourth quarter valued at about $37,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Trading Up 2.5%

Watsco stock opened at $393.45 on Tuesday. Watsco, Inc. has a 1 year low of $323.05 and a 1 year high of $494.94. The company has a market cap of $16.00 billion, a PE ratio of 32.65 and a beta of 1.02. The company's 50-day moving average is $392.67 and its two-hundred day moving average is $391.68.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The construction company reported $1.87 EPS for the quarter, topping the consensus estimate of $1.73 by $0.14. The company had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.49 billion. Watsco had a net margin of 6.85% and a return on equity of 15.31%. Watsco's revenue was up .1% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.93 EPS. Research analysts forecast that Watsco, Inc. will post 12.66 EPS for the current year.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 16th will be issued a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend is Thursday, July 16th. Watsco's payout ratio is currently 109.54%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on WSO. Weiss Ratings reiterated a "hold (c)" rating on shares of Watsco in a research report on Friday, June 26th. Morgan Stanley boosted their target price on shares of Watsco from $370.00 to $405.00 and gave the stock an "equal weight" rating in a research note on Friday. Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a research report on Saturday, May 2nd. DA Davidson started coverage on shares of Watsco in a research note on Tuesday, June 16th. They set a "neutral" rating and a $385.00 price target on the stock. Finally, Stephens raised their price target on shares of Watsco from $475.00 to $485.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. One research analyst has rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $402.71.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.

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