UBS Group AG Acquires 72,977 Shares of Watsco, Inc. $WSO

Key Points

• UBS Group AG increased its stake in Watsco by 64.1% in Q4, buying 72,977 shares to hold 186,875 shares (about 0.46% of the company) valued at roughly $62.97 million.
• Wall Street consensus is a Hold with an average price target of $399.83, while analysts have recently adjusted views and targets (e.g., JPMorgan $400 neutral, Stephens $485 overweight).
• Watsco beat quarterly EPS estimates ($1.87 vs. $1.73) and raised its quarterly dividend to $3.30 (annualized $13.20, ~3.2% yield), though the dividend payout ratio is high at about 109.5%.

UBS Group AG grew its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 64.1% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 186,875 shares of the construction company's stock after acquiring an additional 72,977 shares during the quarter. UBS Group AG owned 0.46% of Watsco worth $62,968,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds also recently modified their holdings of the business. CWM LLC raised its stake in shares of Watsco by 3.8% in the fourth quarter. CWM LLC now owns 710 shares of the construction company's stock valued at $239,000 after purchasing an additional 26 shares in the last quarter. Massachusetts Financial Services Co. MA raised its stake in shares of Watsco by 2.0% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,559 shares of the construction company's stock valued at $525,000 after purchasing an additional 30 shares in the last quarter. Apollon Wealth Management LLC raised its stake in shares of Watsco by 6.0% in the third quarter. Apollon Wealth Management LLC now owns 601 shares of the construction company's stock valued at $243,000 after purchasing an additional 34 shares in the last quarter. Applied Capital LLC FL raised its stake in shares of Watsco by 0.5% in the third quarter. Applied Capital LLC FL now owns 6,993 shares of the construction company's stock valued at $2,827,000 after purchasing an additional 36 shares in the last quarter. Finally, Profund Advisors LLC raised its stake in shares of Watsco by 4.7% in the third quarter. Profund Advisors LLC now owns 805 shares of the construction company's stock valued at $325,000 after purchasing an additional 36 shares in the last quarter. 89.71% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the company. Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a research note on Saturday. JPMorgan Chase & Co. upped their target price on Watsco from $370.00 to $400.00 and gave the company a "neutral" rating in a research note on Thursday, February 19th. Zacks Research upgraded Watsco from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 25th. Stephens increased their price objective on Watsco from $475.00 to $485.00 and gave the stock an "overweight" rating in a research note on Wednesday, April 29th. Finally, UBS Group initiated coverage on Watsco in a research note on Monday, January 5th. They set a "neutral" rating and a $370.00 price objective for the company. One analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, Watsco presently has a consensus rating of "Hold" and an average price target of $399.83.

Watsco Stock Performance

Shares of NYSE:WSO opened at $414.97 on Tuesday. Watsco, Inc. has a twelve month low of $323.05 and a twelve month high of $496.25. The firm has a market cap of $16.85 billion, a PE ratio of 34.44 and a beta of 1.12. The business has a fifty day moving average of $398.25 and a 200-day moving average of $377.09.

Watsco (NYSE:WSO - Get Free Report) last announced its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share for the quarter, beating analysts' consensus estimates of $1.73 by $0.14. Watsco had a return on equity of 15.31% and a net margin of 6.85%.The company had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same period last year, the company posted $1.93 earnings per share. The firm's quarterly revenue was up .1% compared to the same quarter last year. On average, analysts anticipate that Watsco, Inc. will post 12.62 EPS for the current fiscal year.

Watsco Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Thursday, April 16th were paid a $3.30 dividend. This represents a $13.20 dividend on an annualized basis and a dividend yield of 3.2%. This is a boost from Watsco's previous quarterly dividend of $3.00. The ex-dividend date was Thursday, April 16th. Watsco's dividend payout ratio is 109.54%.

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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