Advisors Asset Management Inc. Cuts Position in Watsco, Inc. $WSO

Key Points

• Advisors Asset Management Inc. has decreased its stake in Watsco, Inc. by 39.9%, now holding 6,196 shares valued at approximately $3.15 million.
• Watsco's recent earnings report showed Q2 EPS of $4.52, missing estimates by $0.32, with revenues also falling short at $2.06 billion.
• The company announced a quarterly dividend of $3.00 per share, representing an annualized yield of 2.9% with a payout ratio of 92.02%.

Advisors Asset Management Inc. cut its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 39.9% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 6,196 shares of the construction company's stock after selling 4,120 shares during the period. Advisors Asset Management Inc.'s holdings in Watsco were worth $3,149,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Manitou Investment Management Ltd. purchased a new position in Watsco in the 1st quarter valued at approximately $25,000. Opal Wealth Advisors LLC acquired a new stake in Watsco in the first quarter valued at $25,000. WPG Advisers LLC acquired a new position in shares of Watsco during the 1st quarter worth $25,000. TCTC Holdings LLC boosted its position in shares of Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock worth $28,000 after buying an additional 30 shares in the last quarter. Finally, City Holding Co. acquired a new stake in Watsco in the 1st quarter valued at about $29,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Wall Street Analysts Forecast Growth

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

Watsco Trading Down 1.7%

Shares of Watsco stock traded down $6.83 during trading hours on Tuesday, reaching $402.04. 831,533 shares of the company's stock were exchanged, compared to its average volume of 285,833. Watsco, Inc. has a 52-week low of $390.36 and a 52-week high of $571.41. The firm has a market capitalization of $16.30 billion, a price-to-earnings ratio of 30.83 and a beta of 0.95. The company has a fifty day moving average of $437.74 and a 200-day moving average of $462.29.

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

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were given a $3.00 dividend. This represents a $12.00 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend was Wednesday, July 16th. Watsco's dividend payout ratio (DPR) 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.