Watsco, Inc. $WSO Shares Acquired by Swedbank AB

Key Points

• Swedbank AB increased its stake in Watsco by 11.2% in the first quarter, bringing its holding to 58,214 shares worth about $21.2 million. Institutional investors overall still own a large majority of the stock.
• Watsco’s latest earnings beat expectations, reporting $1.87 per share versus the $1.73 consensus, while revenue came in at $1.53 billion, also ahead of estimates. Analysts expect the company to earn 12.66 EPS for the full fiscal year.
• The company announced a quarterly dividend of $3.30 per share, payable July 31, implying a 3.5% yield. However, the payout ratio is above 100% at 109.54%, which suggests the dividend is being paid out at a high level relative to earnings.

Swedbank AB increased its stake in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 11.2% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 58,214 shares of the construction company's stock after buying an additional 5,869 shares during the quarter. Swedbank AB owned about 0.14% of Watsco worth $21,178,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the stock. Torren Management LLC bought a new position in shares of Watsco during the fourth quarter worth about $26,000. Bayban acquired a new position in Watsco during the 4th quarter valued at about $29,000. Bamco Inc. NY bought a new position in Watsco in the 4th quarter worth about $35,000. Laurel Wealth Advisors LLC acquired a new stake in shares of Watsco in the fourth quarter valued at approximately $37,000. Finally, Quarry LP bought a new stake in shares of Watsco during the fourth quarter valued at approximately $37,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages have recently issued reports on WSO. Weiss Ratings reiterated a "hold (c)" rating on shares of Watsco in a research report on Friday, June 26th. Stephens lifted their target price on Watsco from $475.00 to $485.00 and gave the company an "overweight" rating in a research note on Wednesday, April 29th. Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a research report on Saturday, May 2nd. Finally, DA Davidson started coverage on Watsco in a research note on Tuesday, June 16th. They issued a "neutral" rating and a $385.00 price target for the company. One equities research analyst has rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $397.71.

Watsco Price Performance

NYSE WSO opened at $377.14 on Friday. Watsco, Inc. has a 12 month low of $323.05 and a 12 month high of $494.94. The firm has a market capitalization of $15.33 billion, a PE ratio of 31.30 and a beta of 1.02. The company's 50 day simple moving average is $394.43 and its 200 day simple moving average is $391.08.

Watsco (NYSE:WSO - Get Free Report) last released its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.73 by $0.14. Watsco had a return on equity of 15.31% and a net margin of 6.85%.The firm had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the prior year, the firm posted $1.93 earnings per share. The firm's revenue for the quarter was up .1% compared to the same quarter last year. Sell-side analysts anticipate that Watsco, Inc. will post 12.66 earnings per share for the current fiscal year.

Watsco Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 16th will be issued a $3.30 dividend. The ex-dividend date is Thursday, July 16th. This represents a $13.20 annualized dividend and a dividend yield of 3.5%. Watsco's dividend payout ratio is 109.54%.

Watsco 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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