Watsco, Inc. $WSO Shares Sold by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC has reduced its stake in Watsco, Inc. by 26.1%, selling 8,320 shares during the first quarter, leaving them with approximately 0.06% ownership worth about $11.9 million.
• Watsco reported earnings per share of $4.52 for the last quarter, missing estimates by $0.32, with revenue of $2.06 billion, down 3.6% from the previous year.
• The company announced a quarterly dividend of $3.00, resulting in an annualized payout of $12.00 and a yield of 2.9%, with a dividend payout ratio of 92.02%.

Hsbc Holdings PLC decreased its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 26.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 23,598 shares of the construction company's stock after selling 8,320 shares during the quarter. Hsbc Holdings PLC owned approximately 0.06% of Watsco worth $11,918,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Canada Pension Plan Investment Board acquired a new stake in Watsco in the 4th quarter worth about $95,000. MML Investors Services LLC lifted its position in shares of Watsco by 10.0% in the fourth quarter. MML Investors Services LLC now owns 3,210 shares of the construction company's stock valued at $1,521,000 after acquiring an additional 293 shares in the last quarter. Dark Forest Capital Management LP acquired a new stake in shares of Watsco in the fourth quarter worth approximately $390,000. Capital Analysts LLC increased its position in shares of Watsco by 8.4% during the fourth quarter. Capital Analysts LLC now owns 2,128 shares of the construction company's stock worth $1,009,000 after purchasing an additional 165 shares in the last quarter. Finally, Coldstream Capital Management Inc. increased its position in shares of Watsco by 5.6% during the fourth quarter. Coldstream Capital Management Inc. now owns 5,727 shares of the construction company's stock worth $2,714,000 after purchasing an additional 306 shares in the last quarter. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Trading Up 2.3%

Shares of WSO opened at $414.7760 on Monday. Watsco, Inc. has a 12-month low of $397.73 and a 12-month high of $571.41. The firm has a market capitalization of $16.82 billion, a P/E ratio of 31.81 and a beta of 0.95. The firm has a 50-day moving average price of $444.46 and a 200 day moving average price of $469.29.

Watsco (NYSE:WSO - Get Free Report) last posted its earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share for the quarter, missing the consensus estimate of $4.84 by ($0.32). Watsco had a net margin of 7.08% and a return on equity of 16.96%. The firm had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.24 billion. During the same quarter in the previous year, the firm earned $4.49 earnings per share. The business's revenue for the quarter was down 3.6% compared to the same quarter last year. Equities research analysts predict that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were issued a $3.00 dividend. The ex-dividend date was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a yield of 2.9%. Watsco's dividend payout ratio is currently 92.02%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on WSO. JPMorgan Chase & Co. lifted their target price on shares of Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 27th. Morgan Stanley set a $505.00 price target on shares of Watsco in a research note on Wednesday, July 2nd. UBS Group dropped their price objective on shares of Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research note on Wednesday, June 25th. Finally, Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. One analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, Watsco currently has a consensus rating of "Hold" and an average price target of $484.17.

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.

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