Watsco, Inc. $WSO Shares Bought by Bayforest Capital Ltd

Key Points

• Bayforest Capital Ltd increased its holdings in Watsco, Inc. by 479.6% in Q1, now owning 1,362 shares valued at $692,000.
• Watsco missed analysts' EPS estimates, reporting $4.52 against a forecast of $4.84, and its revenue fell 3.6% year-over-year to $2.06 billion.
• The company announced a quarterly dividend of $3.00 per share, representing an annual yield of 2.9% with a payout ratio of 92.02%.

Bayforest Capital Ltd raised its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 479.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,362 shares of the construction company's stock after purchasing an additional 1,127 shares during the quarter. Bayforest Capital Ltd's holdings in Watsco were worth $692,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently added to or reduced their stakes in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Watsco by 11.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 145,060 shares of the construction company's stock valued at $73,734,000 after acquiring an additional 14,681 shares during the period. Empowered Funds LLC lifted its position in shares of Watsco by 4.1% during the 1st quarter. Empowered Funds LLC now owns 5,927 shares of the construction company's stock valued at $3,013,000 after acquiring an additional 232 shares during the period. Ascent Group LLC lifted its position in shares of Watsco by 2.9% during the 1st quarter. Ascent Group LLC now owns 2,335 shares of the construction company's stock valued at $1,187,000 after acquiring an additional 65 shares during the period. United Services Automobile Association acquired a new stake in shares of Watsco during the 1st quarter valued at approximately $1,126,000. Finally, Goldman Sachs Group Inc. lifted its position in shares of Watsco by 62.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company's stock valued at $238,329,000 after acquiring an additional 180,951 shares during the period. Hedge funds and other institutional investors own 89.71% of the company's stock.

Analyst Ratings Changes

Several research firms have weighed in on WSO. Morgan Stanley set a $505.00 target price on shares of Watsco in a report on Wednesday, July 2nd. UBS Group lowered their price target on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a research report on Wednesday, June 25th. Finally, JPMorgan Chase & Co. lifted their price objective on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 27th. One analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, Watsco currently has a consensus rating of "Hold" and a consensus target price of $484.17.

Watsco Price Performance

NYSE:WSO traded down $15.58 during mid-day trading on Friday, reaching $381.84. The company's stock had a trading volume of 713,532 shares, compared to its average volume of 311,744. Watsco, Inc. has a twelve month low of $378.35 and a twelve month high of $571.41. The company's fifty day simple moving average is $435.21 and its two-hundred day simple moving average is $461.08. The stock has a market cap of $15.48 billion, a P/E ratio of 29.28 and a beta of 0.95.

Watsco (NYSE:WSO - Get Free Report) last released its earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $2.24 billion. During the same period in the prior year, the business posted $4.49 earnings per share. Watsco's revenue was down 3.6% on a year-over-year basis. Sell-side analysts expect that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were issued a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date was Wednesday, July 16th. Watsco's dividend payout ratio (DPR) is 92.02%.

About Watsco

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.