UNIVEST FINANCIAL Corp Takes $1.92 Million Position in Watsco, Inc. $WSO

Key Points

• UNIVEST FINANCIAL Corp acquired 4,601 Watsco shares during the second quarter, valued at approximately $1.92 million. Institutional investors collectively own 89.71% of the company.
• Watsco’s latest quarterly results fell short of expectations, with earnings per share of $4.00 versus the $4.41 consensus estimate and revenue of $2.10 billion versus $2.14 billion expected. Revenue still increased 2.1% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $395.50, while Watsco recently declared a $3.30 quarterly dividend, equivalent to a 4.2% annualized yield.

UNIVEST FINANCIAL Corp bought a new position in shares of Watsco, Inc. (NYSE:WSO - Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 4,601 shares of the construction company's stock, valued at approximately $1,917,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. Torren Management LLC acquired a new stake in Watsco during the 4th quarter valued at $26,000. Bayban purchased a new stake in Watsco during the 4th quarter worth $29,000. Bamco Inc. NY acquired a new position in Watsco in the 4th quarter worth $35,000. Laurel Wealth Advisors LLC acquired a new position in Watsco in the 4th quarter worth $37,000. Finally, Quarry LP acquired a new position in Watsco in the 4th quarter worth $37,000. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Price Performance

WSO opened at $311.07 on Tuesday. Watsco, Inc. has a 12-month low of $300.66 and a 12-month high of $459.00. The stock has a market capitalization of $12.83 billion, a PE ratio of 26.98 and a beta of 1.05. The firm's fifty day moving average price is $368.52 and its 200 day moving average price is $387.71.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing the consensus estimate of $4.41 by ($0.41). The company had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.Watsco's revenue was up 2.1% on a year-over-year basis. During the same period in the prior year, the business earned $4.52 earnings per share. On average, equities research analysts forecast that Watsco, Inc. will post 12.43 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 16th were given a dividend of $3.30 per share. The ex-dividend date of this dividend was Thursday, July 16th. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. Watsco's dividend payout ratio (DPR) is presently 114.48%.

Analyst Ratings Changes

Several analysts have recently weighed in on WSO shares. DA Davidson lowered their target price on Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a research note on Thursday, July 30th. Robert W. Baird set a $400.00 price target on Watsco in a research note on Thursday, July 30th. Morgan Stanley increased their price target on Watsco from $370.00 to $405.00 and gave the company an "equal weight" rating in a report on Friday, July 10th. Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Finally, Stephens restated an "overweight" rating and set a $485.00 price objective on shares of Watsco in a report on Monday. Two investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $395.50.

About Watsco

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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