Watsco, Inc. $WSO Position Reduced by Entropy Technologies LP

Key Points

• Entropy Technologies LP cut its Watsco stake by 62.6% in the first quarter, selling 6,605 shares and retaining 3,947 shares valued at approximately $1.44 million. Institutional investors and hedge funds collectively own 89.71% of Watsco.
• Watsco reported quarterly EPS of $1.87, exceeding analysts’ $1.73 estimate, while revenue reached $1.53 billion versus the $1.49 billion consensus. Shares opened at $363.85, below the average analyst price target of $402.71.
• The company announced a quarterly dividend of $3.30 per share, equivalent to $13.20 annually and a 3.6% yield. Analysts maintain a broadly neutral view, with one Buy rating and nine Hold ratings.

Entropy Technologies LP trimmed its position in Watsco, Inc. (NYSE:WSO - Free Report) by 62.6% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 3,947 shares of the construction company's stock after selling 6,605 shares during the period. Entropy Technologies LP's holdings in Watsco were worth $1,436,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Torren Management LLC bought a new stake in shares of Watsco in the 4th quarter worth approximately $26,000. Bayban bought a new position in Watsco during the 4th quarter valued at $29,000. Bamco Inc. NY acquired a new position in shares of Watsco during the 4th quarter valued at $35,000. Laurel Wealth Advisors LLC acquired a new position in shares of Watsco during the 4th quarter valued at $37,000. Finally, Quarry LP bought a new stake in shares of Watsco in the 4th quarter worth $37,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Stock Performance

Shares of NYSE:WSO opened at $363.85 on Tuesday. The firm has a market cap of $14.79 billion, a PE ratio of 30.19 and a beta of 1.02. Watsco, Inc. has a twelve month low of $323.05 and a twelve month high of $491.55. The business has a fifty day moving average of $383.81 and a 200-day moving average of $393.54.

Watsco (NYSE:WSO - Get Free Report) last announced its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.73 by $0.14. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.49 billion. Watsco's quarterly revenue was up .1% on a year-over-year basis. During the same period in the prior year, the business earned $1.93 earnings per share. On average, analysts anticipate that Watsco, Inc. will post 12.9 EPS for the current fiscal year.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 16th will be given a dividend of $3.30 per share. The ex-dividend date is Thursday, July 16th. This represents a $13.20 annualized dividend and a dividend yield of 3.6%. Watsco's payout ratio is presently 109.54%.

Wall Street Analyst Weigh In

Several research firms recently commented on WSO. Morgan Stanley increased their target price on shares of Watsco from $370.00 to $405.00 and gave the company an "equal weight" rating in a research note on Friday, July 10th. Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Stephens increased their price objective on Watsco from $475.00 to $485.00 and gave the stock an "overweight" rating in a report on Wednesday, April 29th. DA Davidson began coverage on Watsco in a report on Tuesday, June 16th. They set a "neutral" rating and a $385.00 target price on the stock. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Watsco in a research note on Friday, June 26th. One analyst has rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $402.71.

Watsco Company Profile

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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