Swedbank AB Reduces Position in Watsco, Inc. $WSO

Key Points

• Swedbank AB cut its Watsco stake by 38% in the fourth quarter, selling 32,047 shares and ending with 52,345 shares valued at about $17.6 million.
• Watsco reported better-than-expected quarterly results, with EPS of $1.87 versus estimates of $1.73 and revenue of $1.53 billion versus expectations of $1.49 billion.
• The company raised its quarterly dividend to $3.30 per share from $3.00, bringing the annualized payout to $13.20 and a yield of about 3.1%.

Swedbank AB lessened its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 38.0% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 52,345 shares of the construction company's stock after selling 32,047 shares during the period. Swedbank AB owned about 0.13% of Watsco worth $17,638,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of WSO. Torren Management LLC purchased a new position in shares of Watsco during the fourth quarter valued at approximately $26,000. Laurel Wealth Advisors LLC purchased a new position in shares of Watsco during the fourth quarter valued at approximately $37,000. Steigerwald Gordon & Koch Inc. purchased a new position in shares of Watsco during the third quarter valued at approximately $49,000. First Horizon Corp purchased a new position in shares of Watsco during the third quarter valued at approximately $51,000. Finally, Bayforest Capital Ltd purchased a new position in shares of Watsco during the third quarter valued at approximately $57,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Stock Performance

Shares of NYSE WSO opened at $419.93 on Friday. The firm has a market capitalization of $17.05 billion, a price-to-earnings ratio of 34.85 and a beta of 1.12. The stock has a 50 day moving average price of $399.21 and a 200 day moving average price of $378.37. Watsco, Inc. has a 52-week low of $323.05 and a 52-week high of $496.25.

Watsco (NYSE:WSO - Get Free Report) last posted its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.73 by $0.14. The company had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.49 billion. Watsco had a return on equity of 15.31% and a net margin of 6.85%.Watsco's revenue was up .1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.93 earnings per share. Analysts forecast that Watsco, Inc. will post 12.7 earnings per share for the current year.

Watsco Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th were issued a dividend of $3.30 per share. This is an increase from Watsco's previous quarterly dividend of $3.00. This represents a $13.20 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date was Thursday, April 16th. Watsco's dividend payout ratio (DPR) is currently 109.54%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on WSO shares. Stephens boosted their price target on Watsco from $475.00 to $485.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. boosted their price target on Watsco from $370.00 to $400.00 and gave the company a "neutral" rating in a report on Thursday, February 19th. Zacks Research upgraded Watsco from a "strong sell" rating to a "hold" rating in a report on Wednesday, February 25th. Mizuho set a $425.00 price target on Watsco in a report on Wednesday, February 18th. Finally, Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. One analyst has rated the stock with a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, Watsco presently has an average rating of "Hold" and a consensus target price of $399.83.

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.

Want to see what other hedge funds are holding WSO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Watsco, Inc. (NYSE:WSO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.