Watsco, Inc. $WSO Shares Sold by Hamlin Capital Management LLC

Key Points

• Hamlin Capital trimmed its stake in Watsco by 16.1% in Q4, selling 65,158 shares and now holds 340,322 shares (0.84% of Watsco) valued at about $114.67 million, making Watsco ~2.7% of Hamlin's portfolio.
• Watsco missed quarterly estimates with Q4 EPS $1.68 vs. $1.94 expected and revenue of $1.58B (down 9.9% year‑over‑year); the stock was trading around $373.75 with a 52‑week range of $323.05–$521.70.
• The company pays a $3.00 quarterly dividend ($12.00 annualized, yield ~3.2%) with a payout ratio near 99%, and analysts carry a consensus "Hold" rating with a $409 price target.

Hamlin Capital Management LLC trimmed its position in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 16.1% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 340,322 shares of the construction company's stock after selling 65,158 shares during the quarter. Watsco accounts for approximately 2.7% of Hamlin Capital Management LLC's investment portfolio, making the stock its 23rd biggest position. Hamlin Capital Management LLC owned 0.84% of Watsco worth $114,671,000 at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. TD Waterhouse Canada Inc. lifted its position in shares of Watsco by 242.9% during the second quarter. TD Waterhouse Canada Inc. now owns 72 shares of the construction company's stock worth $33,000 after purchasing an additional 51 shares in the last quarter. SJS Investment Consulting Inc. grew its holdings in shares of Watsco by 2,366.7% in the third quarter. SJS Investment Consulting Inc. now owns 74 shares of the construction company's stock valued at $30,000 after purchasing an additional 71 shares in the last quarter. TruNorth Capital Management LLC acquired a new position in shares of Watsco in the third quarter valued at approximately $37,000. Capital A Wealth Management LLC increased its stake in Watsco by 4,700.0% during the 2nd quarter. Capital A Wealth Management LLC now owns 96 shares of the construction company's stock worth $41,000 after buying an additional 94 shares during the period. Finally, Steigerwald Gordon & Koch Inc. purchased a new stake in Watsco during the 3rd quarter worth approximately $49,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

WSO has been the subject of several recent research reports. KeyCorp reissued a "sector weight" rating on shares of Watsco in a research report on Friday, December 12th. UBS Group initiated coverage on Watsco in a research report on Monday, January 5th. They set a "neutral" rating and a $370.00 price objective on the stock. Mizuho set a $425.00 price objective on Watsco in a research note on Wednesday, February 18th. Wolfe Research set a $349.00 target price on Watsco in a report on Tuesday, December 9th. Finally, Zacks Research raised Watsco from a "strong sell" rating to a "hold" rating in a research note on Wednesday, February 25th. One investment analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, Watsco has a consensus rating of "Hold" and a consensus price target of $409.00.

Watsco Stock Down 2.4%

Shares of Watsco stock opened at $373.75 on Friday. Watsco, Inc. has a 52-week low of $323.05 and a 52-week high of $521.70. The company has a market capitalization of $15.16 billion, a P/E ratio of 30.86 and a beta of 1.03. The company has a 50 day moving average of $395.63 and a 200 day moving average of $375.62.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The construction company reported $1.68 EPS for the quarter, missing analysts' consensus estimates of $1.94 by ($0.26). The firm had revenue of $1.58 billion during the quarter, compared to analysts' expectations of $1.62 billion. Watsco had a net margin of 6.87% and a return on equity of 15.49%. The company's revenue for the quarter was down 9.9% on a year-over-year basis. During the same period in the prior year, the company posted $2.37 earnings per share. As a group, research analysts anticipate that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Friday, January 16th were paid a $3.00 dividend. The ex-dividend date was Friday, January 16th. This represents a $12.00 dividend on an annualized basis and a yield of 3.2%. Watsco's dividend payout ratio (DPR) is currently 99.09%.

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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