United Services Automobile Association Invests $1.13 Million in Watsco, Inc. $WSO

Key Points

• United Services Automobile Association acquired a new stake in Watsco, Inc. during the first quarter, purchasing 2,244 shares valued at approximately $1.126 million.
• Watsco reported $4.52 EPS for the last quarter, missing analysts' estimates, with a 3.6% decline in year-over-year revenue.
• The firm announced a quarterly dividend of $3.00 per share, representing an annualized yield of 2.9%, with a payout ratio of 92.02%.

United Services Automobile Association bought a new stake in Watsco, Inc. (NYSE:WSO - Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 2,244 shares of the construction company's stock, valued at approximately $1,126,000.

Other hedge funds also recently made changes to their positions in the company. Manitou Investment Management Ltd. bought a new stake in shares of Watsco during the 1st quarter valued at approximately $25,000. Opal Wealth Advisors LLC bought a new stake in shares of Watsco during the first quarter worth $25,000. WPG Advisers LLC acquired a new position in shares of Watsco during the first quarter worth $25,000. TCTC Holdings LLC lifted its stake in shares of 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 last quarter. Finally, City Holding Co. bought a new position in shares of Watsco in the 1st quarter valued at $29,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on WSO shares. UBS Group lowered their target price on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a report on Wednesday, June 25th. JPMorgan Chase & Co. upped their price objective on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research note on Tuesday, May 27th. Finally, Morgan Stanley set a $505.00 target price on shares of Watsco in a report on Wednesday, July 2nd. One analyst has rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, Watsco has an average rating of "Hold" and a consensus price target of $484.17.

Watsco Stock Down 3.9%

WSO traded down $15.58 during trading on Friday, reaching $381.84. 713,532 shares of the stock traded hands, compared to its average volume of 345,967. The stock's 50-day moving average is $433.70 and its 200 day moving average is $460.02. Watsco, Inc. has a 12 month low of $378.35 and a 12 month high of $571.41. The stock has a market capitalization of $15.48 billion, a PE ratio of 29.28 and a beta of 0.95.

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). Watsco had a return on equity of 16.96% and a net margin of 7.08%.The business had revenue of $2.06 billion during the quarter, compared to the consensus estimate of $2.24 billion. During the same period last year, the business posted $4.49 earnings per share. The business's revenue was down 3.6% on a year-over-year basis. As a group, equities research analysts anticipate that Watsco, Inc. will post 14.62 EPS for the current year.

Watsco Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were paid a $3.00 dividend. The ex-dividend date of this dividend was Wednesday, July 16th. This represents a $12.00 annualized dividend and a yield of 3.1%. Watsco's payout ratio is 92.02%.

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.