Watsco, Inc. $WSO Shares Purchased by Sumitomo Mitsui DS Asset Management Company Ltd

Key Points

• Institutional ownership increased: Sumitomo Mitsui DS Asset Management raised its Watsco stake by 29.4% to 35,138 shares, while institutional investors collectively own 89.71% of the company.
• Mixed financial performance: Watsco reported quarterly EPS of $4.00, below the $4.41 analyst consensus, although revenue rose 2.1% year over year to $2.10 billion.
• Dividend and analyst outlook: Watsco announced a quarterly dividend of $3.30 per share, representing a 4.4% yield. Analysts maintain a consensus “Hold” rating with an average price target of $373.62, versus shares trading near $301.54.

Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 29.4% during the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 35,138 shares of the construction company's stock after purchasing an additional 7,977 shares during the quarter. Sumitomo Mitsui DS Asset Management Company Ltd owned approximately 0.09% of Watsco worth $10,636,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of WSO. Confluence Investment Management LLC bought a new stake in Watsco during the third quarter worth $96,991,000. Bank of America Corp DE bought a new position in Watsco during the 2nd quarter valued at $119,291,000. Bank of New York Mellon Corp bought a new position in Watsco during the 2nd quarter valued at $97,937,000. Findlay Park Partners LLP bought a new position in Watsco during the 2nd quarter valued at $78,695,000. Finally, Corient Private Wealth LP purchased a new position in Watsco during the 2nd quarter worth $60,024,000. Institutional investors own 89.71% of the company's stock.

Watsco Trading Up 2.6%

Shares of WSO opened at $301.54 on Wednesday. The company has a market capitalization of $12.44 billion, a price-to-earnings ratio of 26.15 and a beta of 1.06. The stock has a 50 day moving average of $306.72 and a 200 day moving average of $359.46. Watsco, Inc. has a 12 month low of $277.34 and a 12 month high of $459.00.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing analysts' consensus estimates of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%. The business had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same quarter last year, the business posted $4.52 earnings per share. The business's revenue was up 2.1% compared to the same quarter last year. As a group, equities research analysts predict that Watsco, Inc. will post 12.19 earnings per share for the current year.

Watsco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 16th will be given a dividend of $3.30 per share. The ex-dividend date of this dividend is Friday, October 16th. This represents a $13.20 annualized dividend and a dividend yield of 4.4%. Watsco's dividend payout ratio (DPR) is currently 114.48%.

Wall Street Analyst Weigh In

WSO has been the subject of several recent analyst reports. Weiss Ratings lowered shares of Watsco from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, October 6th. Zacks Research lowered shares of Watsco from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 22nd. DA Davidson cut their price target on shares of Watsco from $385.00 to $330.00 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Stephens restated an "overweight" rating and set a $485.00 price target on shares of Watsco in a report on Monday, August 17th. Finally, Mizuho reduced their price objective on shares of Watsco from $350.00 to $325.00 and set a "neutral" rating for the company in a research report on Thursday, October 15th. Two research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $373.62.

Watsco Profile

Watsco, Inc NYSE: WSO is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.

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