Watsco, Inc. $WSO Shares Purchased by Ironvine Capital Partners LLC

Key Points

• Ironvine Capital Partners increased its Watsco stake by 17.7% in the second quarter, purchasing 3,348 additional shares and bringing its holdings to 22,295 shares valued at approximately $9.3 million. Institutional investors collectively own 89.71% of the company.
• Watsco’s latest quarterly results fell short of expectations, with EPS of $4.00 versus the $4.41 consensus and revenue of $2.10 billion versus $2.14 billion expected. Revenue nevertheless increased 2.1% year over year.
• The company paid a quarterly dividend of $3.30 per share, equivalent to a $13.20 annualized payout and 4.2% yield. Analysts maintain a consensus “Hold” rating, with an average price target of $395.50.

Ironvine Capital Partners LLC grew its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 17.7% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 22,295 shares of the construction company's stock after purchasing an additional 3,348 shares during the quarter. Ironvine Capital Partners LLC owned approximately 0.05% of Watsco worth $9,291,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Bayban acquired a new stake in shares of Watsco in the fourth quarter valued at about $29,000. Bamco Inc. NY acquired a new position in Watsco during the fourth quarter worth about $35,000. Quarry LP purchased a new stake in Watsco during the 4th quarter valued at about $37,000. Western Wealth Management LLC purchased a new stake in Watsco during the 1st quarter valued at about $41,000. Finally, Resources Management Corp CT ADV raised its holdings in Watsco by 150.0% in the 4th quarter. Resources Management Corp CT ADV now owns 125 shares of the construction company's stock valued at $42,000 after acquiring an additional 75 shares during the last quarter. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Trading Up 1.4%

Shares of NYSE:WSO opened at $314.16 on Wednesday. The company has a market capitalization of $12.96 billion, a price-to-earnings ratio of 27.25 and a beta of 1.05. Watsco, Inc. has a 12-month low of $295.75 and a 12-month high of $459.00. The business has a 50-day moving average price of $351.84 and a 200 day moving average price of $380.67.

Watsco (NYSE:WSO - Get Free Report) last announced its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%.The company had revenue of $2.10 billion for the quarter, compared to analysts' expectations of $2.14 billion. During the same period last year, the business earned $4.52 EPS. The company's quarterly revenue was up 2.1% compared to the same quarter last year. As a group, equities research analysts predict that Watsco, Inc. will post 12.21 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 16th were issued a $3.30 dividend. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date was Thursday, July 16th. Watsco's dividend payout ratio is currently 114.48%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Watsco in a research note on Friday, June 26th. DA Davidson dropped their price target on Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Morgan Stanley increased their price target on Watsco from $370.00 to $405.00 and gave the company an "equal weight" rating in a report on Friday, July 10th. Stephens reiterated an "overweight" rating and set a $485.00 price objective on shares of Watsco in a research report on Monday, August 17th. Finally, Robert W. Baird set a $400.00 price objective on Watsco in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $395.50.

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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