Watsco, Inc. $WSO Shares Acquired by Dudley & Shanley Inc.

Key Points

• Dudley & Shanley Inc. increased its stake in Watsco, Inc. by 56.7%, owning approximately 0.10% of the company valued at $17.59 million as of the latest SEC filing.
• Watsco reported adjusted EPS of $4.52 for the last quarter, missing estimates by 32 cents, with revenue down 3.6% year-over-year at $2.06 billion.
• The company announced a quarterly dividend of $3.00 per share, which translates to an annualized yield of 3.1%.

Dudley & Shanley Inc. increased its position in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 56.7% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 39,833 shares of the construction company's stock after purchasing an additional 14,405 shares during the period. Watsco accounts for about 2.8% of Dudley & Shanley Inc.'s holdings, making the stock its 16th biggest holding. Dudley & Shanley Inc. owned approximately 0.10% of Watsco worth $17,591,000 at the end of the most recent reporting period.

A number of other large investors have also recently added to or reduced their stakes in the business. GAMMA Investing LLC increased its holdings in shares of Watsco by 89,376.0% in the 1st quarter. GAMMA Investing LLC now owns 477,802 shares of the construction company's stock valued at $242,867,000 after acquiring an additional 477,268 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in Watsco by 62.8% in the first quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company's stock valued at $238,329,000 after purchasing an additional 180,951 shares in the last quarter. Jacobs Levy Equity Management Inc. purchased a new stake in shares of Watsco during the 1st quarter worth approximately $54,536,000. Charles Schwab Investment Management Inc. lifted its position in shares of Watsco by 6.0% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,454,512 shares of the construction company's stock worth $739,088,000 after buying an additional 82,977 shares during the last quarter. Finally, Nuveen LLC purchased a new stake in shares of Watsco during the 1st quarter worth approximately $41,218,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Price Performance

Shares of WSO stock traded up $5.68 during trading hours on Friday, reaching $389.93. 634,248 shares of the company were exchanged, compared to its average volume of 401,385. The stock's fifty day moving average is $425.83 and its two-hundred day moving average is $456.53. Watsco, Inc. has a fifty-two week low of $378.35 and a fifty-two week high of $571.41. The company has a market cap of $15.81 billion, a price-to-earnings ratio of 29.90 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 EPS for the quarter, missing the consensus estimate of $4.84 by ($0.32). Watsco had a net margin of 7.08% and a return on equity of 16.96%. The firm had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.24 billion. During the same period last year, the business posted $4.49 earnings per share. The firm's quarterly revenue was down 3.6% on a year-over-year basis. On average, research analysts anticipate that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Dividend Announcement

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

Analysts Set New Price Targets

A number of equities analysts have recently commented on WSO shares. UBS Group cut their target price on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a report on Wednesday, June 25th. Morgan Stanley set a $505.00 price objective on Watsco in a report on Wednesday, July 2nd. Finally, JPMorgan Chase & Co. lifted their target price on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research report on Tuesday, May 27th. One research analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $484.17.

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.