Watsco, Inc. $WSO Holdings Lowered by Carnegie Investment Counsel

Key Points

• Carnegie Investment Counsel cut its Watsco stake by 24.1% in the third quarter, selling 7,350 shares and retaining 23,141 shares valued at approximately $7.0 million. Institutional investors and hedge funds collectively own 89.71% of Watsco.
• Watsco reported quarterly EPS of $4.00, below the $4.41 analyst consensus, while revenue reached $2.10 billion, also slightly under estimates but up 2.1% year over year.
• The company declared a quarterly dividend of $3.30, equivalent to $13.20 annually and a 4.3% yield. Analysts maintain a consensus “Hold” rating, with an average price target of $373.62 versus the reported share price of $305.52.

Carnegie Investment Counsel reduced its position in Watsco, Inc. (NYSE:WSO - Free Report) by 24.1% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 23,141 shares of the construction company's stock after selling 7,350 shares during the quarter. Carnegie Investment Counsel owned about 0.06% of Watsco worth $7,005,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Confluence Investment Management LLC acquired a new stake in Watsco during the 3rd quarter worth $96,991,000. Bank of America Corp DE purchased a new stake in shares of Watsco during the second quarter worth $119,291,000. Bank of New York Mellon Corp purchased a new stake in shares of Watsco during the second quarter worth $97,937,000. Findlay Park Partners LLP purchased a new stake in shares of Watsco during the second quarter worth $78,695,000. Finally, Corient Private Wealth LP acquired a new stake in shares of Watsco in the second quarter valued at about $60,024,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Stock Performance

Shares of Watsco stock opened at $305.52 on Thursday. Watsco, Inc. has a one year low of $277.34 and a one year high of $459.00. The company has a market cap of $12.60 billion, a price-to-earnings ratio of 26.50 and a beta of 1.06. The business's 50 day moving average price is $306.66 and its 200 day moving average price is $359.00.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing analysts' consensus estimates 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%. The business's quarterly revenue was up 2.1% on a year-over-year basis. During the same period last year, the firm posted $4.52 EPS. On average, analysts predict that Watsco, Inc. will post 12.19 EPS for the current fiscal year.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 16th will be paid a $3.30 dividend. The ex-dividend date of this dividend is Friday, October 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.3%. Watsco's dividend payout ratio (DPR) is 114.48%.

Analyst Ratings Changes

WSO has been the topic of several research reports. Mizuho decreased their price target on shares of Watsco from $350.00 to $325.00 and set a "neutral" rating on the stock in a research note on Thursday, October 15th. Robert W. Baird set a $400.00 price target on shares of Watsco in a research report on Thursday, July 30th. Morgan Stanley dropped their price objective on shares of Watsco from $370.00 to $330.00 and set an "equal weight" rating for the company in a research note on Monday, October 12th. Zacks Research cut shares of Watsco from a "hold" rating to a "strong sell" rating in a research note on Tuesday, September 22nd. Finally, Stephens reiterated an "overweight" rating and issued a $485.00 price objective on shares of Watsco in a report on Monday, August 17th. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $373.62.

Watsco Profile

Watsco, Inc NYSE: WSO is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.

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