Watsco, Inc. $WSO Shares Sold by Conestoga Capital Advisors LLC

Key Points

• Conestoga Capital Advisors cut its Watsco stake by 30.8% in the third quarter, selling 24,962 shares; it retained 56,013 shares valued at about $17 million.
• Watsco reported quarterly EPS of $3.77, below the $4.10 analyst consensus, while revenue of $2.22 billion slightly topped expectations and rose 7.4% year over year.
• Analysts’ average rating was Hold, with an average price target of $373.62. Watsco also paid a $3.30 quarterly dividend, equivalent to a 4.1% yield.

Conestoga Capital Advisors LLC lowered its position in Watsco, Inc. (NYSE:WSO - Free Report) by 30.8% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 56,013 shares of the construction company's stock after selling 24,962 shares during the quarter. Conestoga Capital Advisors LLC owned 0.14% of Watsco worth $16,955,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Laurel Wealth Advisors LLC acquired a new stake in Watsco during the third quarter worth about $34,000. Western Wealth Management LLC purchased a new position in shares of Watsco in the 1st quarter worth about $41,000. Versant Capital Management Inc raised its holdings in shares of Watsco by 293.3% in the 2nd quarter. Versant Capital Management Inc now owns 118 shares of the construction company's stock worth $49,000 after purchasing an additional 88 shares during the period. N.E.W. Advisory Services LLC acquired a new position in shares of Watsco in the 2nd quarter valued at about $67,000. Finally, Jones Financial Companies Lllp acquired a new position in shares of Watsco in the 2nd quarter valued at about $71,000. Institutional investors and hedge funds own 89.71% of the company's stock.

Analysts Set New Price Targets

WSO has been the subject of a number of research reports. Morgan Stanley decreased their target price on Watsco from $370.00 to $330.00 and set an "equal weight" rating for the company in a report on Monday, October 12th. Robert W. Baird set a $400.00 price target on shares of Watsco in a report on Thursday, July 30th. Weiss Ratings cut shares of Watsco from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday, October 6th. Stephens reaffirmed an "overweight" rating and set a $485.00 price target on shares of Watsco in a research report on Monday, August 17th. Finally, Zacks Research upgraded shares of Watsco from a "strong sell" rating to a "hold" rating in a research note on Wednesday, October 21st. Two research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $373.62.

Watsco Stock Up 2.4%

WSO opened at $319.06 on Thursday. Watsco, Inc. has a 52-week low of $277.34 and a 52-week high of $459.00. The firm has a market capitalization of $13.16 billion, a P/E ratio of 28.19 and a beta of 1.03. The firm's 50 day moving average is $306.25 and its 200-day moving average is $364.81.

Watsco (NYSE:WSO - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The construction company reported $3.77 earnings per share for the quarter, missing analysts' consensus estimates of $4.10 by ($0.33). Watsco had a net margin of 6.31% and a return on equity of 13.97%. The firm had revenue of $2.22 billion during the quarter, compared to analysts' expectations of $2.21 billion. During the same period in the previous year, the company earned $3.98 earnings per share. The business's quarterly revenue was up 7.4% on a year-over-year basis. Equities analysts expect that Watsco, Inc. will post 11.70 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Friday, October 16th were issued a $3.30 dividend. The ex-dividend date of this dividend was Friday, October 16th. This represents a $13.20 annualized dividend and a yield of 4.1%. Watsco's dividend payout ratio is currently 116.61%.

Watsco Company 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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