Kayne Anderson Rudnick Investment Management LLC Grows Stock Position in Watsco, Inc. $WSO

Key Points

• Kayne Anderson Rudnick Investment Management LLC has increased its stake in Watsco, Inc. to 1,557,610 shares, now making up about 1.9% of its portfolio.
• Watsco announced a quarterly dividend of $3.00 per share, reflecting a 2.9% yield, with a dividend payout ratio currently at 92.02%.
• The company reported earnings of $4.52 per share for the last quarter, missing estimates, and had a revenue of $2.06 billion, which was lower than the expected $2.24 billion.

Kayne Anderson Rudnick Investment Management LLC grew its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 0.5% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,557,610 shares of the construction company's stock after acquiring an additional 7,760 shares during the period. Watsco accounts for approximately 1.9% of Kayne Anderson Rudnick Investment Management LLC's investment portfolio, making the stock its 5th biggest holding. Kayne Anderson Rudnick Investment Management LLC owned approximately 3.85% of Watsco worth $791,734,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Opal Wealth Advisors LLC acquired a new stake in Watsco during the 1st quarter worth about $25,000. Manitou Investment Management Ltd. acquired a new stake in Watsco during the 1st quarter worth about $25,000. TCTC Holdings LLC grew its holdings in Watsco by 115.4% during the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock worth $28,000 after acquiring an additional 30 shares during the period. City Holding Co. acquired a new stake in Watsco during the 1st quarter worth about $29,000. Finally, Rossby Financial LCC acquired a new stake in Watsco during the 1st quarter worth about $33,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have weighed in on WSO shares. Morgan Stanley set a $505.00 price target on Watsco in a report on Wednesday, July 2nd. JPMorgan Chase & Co. increased their price target on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a report on Tuesday, May 27th. Wall Street Zen raised shares of Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Finally, UBS Group cut their price objective 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. One research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Watsco presently has a consensus rating of "Hold" and a consensus target price of $484.17.

Watsco Trading Up 0.7%

Shares of NYSE:WSO traded up $2.70 during mid-day trading on Wednesday, reaching $409.74. The company had a trading volume of 373,195 shares, compared to its average volume of 367,224. The firm has a market cap of $16.62 billion, a price-to-earnings ratio of 31.42 and a beta of 0.95. The company's 50-day moving average price is $443.41 and its 200-day moving average price is $468.05. Watsco, Inc. has a one year low of $397.73 and a one year high of $571.41.

Watsco (NYSE:WSO - Get Free Report) last issued 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). The firm had revenue of $2.06 billion during the quarter, compared to the consensus estimate of $2.24 billion. Watsco had a net margin of 7.08% and a return on equity of 16.96%. The business's quarterly revenue was down 3.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.49 earnings per share. On average, research analysts anticipate that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Announces Dividend

The company 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. The ex-dividend date was Wednesday, July 16th. This represents a $12.00 annualized dividend and a dividend yield of 2.9%. Watsco's payout ratio is presently 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.