Versor Investments LP Acquires 1,201 Shares of Watsco, Inc. $WSO

Key Points

• Versor Investments LP increased its stake in Watsco, Inc. by 54.6%, owning 3,401 shares valued at approximately $1.73 million as of the end of the most recent quarter.
• Several large hedge funds, including Charles Schwab Investment Management and GAMMA Investing LLC, also raised their positions in Watsco, indicating strong institutional interest as they collectively hold 89.71% of the stock.
• Watsco reported a quarterly earnings miss with earnings per share (EPS) of $4.52, falling short of analysts' expectations, amid a 3.6% decline in year-over-year revenue.

Versor Investments LP lifted its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 54.6% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 3,401 shares of the construction company's stock after buying an additional 1,201 shares during the period. Versor Investments LP's holdings in Watsco were worth $1,729,000 at the end of the most recent reporting period.

Several other institutional investors have also bought and sold shares of the stock. OneDigital Investment Advisors LLC bought a new position in shares of Watsco during the first quarter valued at $266,000. Teacher Retirement System of Texas acquired a new stake in shares of Watsco during the 1st quarter worth about $2,588,000. Golden State Wealth Management LLC lifted its holdings in Watsco by 109.4% during the 1st quarter. Golden State Wealth Management LLC now owns 222 shares of the construction company's stock valued at $113,000 after purchasing an additional 116 shares during the last quarter. SG Americas Securities LLC boosted its position in Watsco by 133.1% in the first quarter. SG Americas Securities LLC now owns 844 shares of the construction company's stock valued at $429,000 after buying an additional 482 shares in the last quarter. Finally, Fifth Third Bancorp grew its stake in Watsco by 4.8% during the first quarter. Fifth Third Bancorp now owns 1,028 shares of the construction company's stock worth $523,000 after buying an additional 47 shares during the last quarter. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Price Performance

Shares of WSO stock traded up $6.3260 during trading hours on Tuesday, reaching $425.5860. The company had a trading volume of 164,522 shares, compared to its average volume of 366,856. Watsco, Inc. has a 1-year low of $403.01 and a 1-year high of $571.41. The firm has a market cap of $17.26 billion, a price-to-earnings ratio of 32.64 and a beta of 0.95. The company has a 50 day moving average of $446.07 and a 200 day moving average of $470.61.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 EPS for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). Watsco had a return on equity of 16.96% and a net margin of 7.08%.The company had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.24 billion. During the same period last year, the firm earned $4.49 earnings per share. The firm's revenue for the quarter was down 3.6% on a year-over-year basis. As a group, sell-side analysts forecast that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were paid a dividend of $3.00 per share. The ex-dividend date of this dividend was Wednesday, July 16th. This represents a $12.00 annualized dividend and a yield of 2.8%. Watsco's dividend payout ratio (DPR) is presently 92.02%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Robert W. Baird decreased their price target on Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research report on Thursday, April 24th. UBS Group cut their price objective on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research report on Wednesday, June 25th. Morgan Stanley set a $505.00 price target on Watsco in a report on Wednesday, July 2nd. Mizuho set a $490.00 target price on shares of Watsco in a research report on Thursday, April 24th. Finally, Wall Street Zen raised shares of Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. One equities research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Watsco presently has a consensus rating of "Hold" and an average target price of $484.17.

Watsco 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.