Invesco Ltd. Trims Stock Position in Watsco, Inc. $WSO

Key Points

• Invesco Ltd. reduced its stake in Watsco, Inc. by 41.8%, selling 78,747 shares and now holding about 109,733 shares valued at approximately $55.8 million.
• Watsco reported quarterly earnings of $4.52 per share, missing analysts' expectations and showing a 3.6% year-over-year revenue decline.
• The company declared a quarterly dividend of $3.00, representing a 2.9% dividend yield and reflecting a payout ratio of 92.02%.

Invesco Ltd. decreased its holdings in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 41.8% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 109,733 shares of the construction company's stock after selling 78,747 shares during the period. Invesco Ltd. owned about 0.27% of Watsco worth $55,777,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. GAMMA Investing LLC increased its stake in shares of Watsco by 89,376.0% in the 1st quarter. GAMMA Investing LLC now owns 477,802 shares of the construction company's stock worth $242,867,000 after acquiring an additional 477,268 shares during the last quarter. Lord Abbett & CO. LLC acquired a new position in Watsco in the 4th quarter valued at about $104,533,000. Balyasny Asset Management L.P. grew its position in Watsco by 542.2% in the 4th quarter. Balyasny Asset Management L.P. now owns 110,752 shares of the construction company's stock valued at $52,484,000 after acquiring an additional 93,506 shares in the last quarter. Charles Schwab Investment Management Inc. grew its position in Watsco by 6.0% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,454,512 shares of the construction company's stock valued at $739,088,000 after acquiring an additional 82,977 shares in the last quarter. Finally, Northern Trust Corp grew its position in shares of Watsco by 25.5% during the fourth quarter. Northern Trust Corp now owns 333,348 shares of the construction company's stock worth $157,970,000 after buying an additional 67,649 shares in the last quarter. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco Trading Down 1.4%

Shares of NYSE:WSO traded down $5.9220 on Wednesday, hitting $419.1080. The company had a trading volume of 264,897 shares, compared to its average volume of 301,347. Watsco, Inc. has a 52-week low of $403.01 and a 52-week high of $571.41. The business has a 50 day moving average of $446.07 and a 200 day moving average of $470.61. The company has a market cap of $16.99 billion, a PE ratio of 32.14 and a beta of 0.95.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 earnings per share (EPS) 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 company had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same quarter in the prior year, the company earned $4.49 earnings per share. The firm's revenue was down 3.6% compared to the same quarter last year. As a group, equities analysts predict that Watsco, Inc. will post 14.62 EPS for the current year.

Watsco Announces Dividend

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

Wall Street Analysts Forecast Growth

WSO has been the subject of a number of analyst reports. UBS Group lowered their price objective on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research report on Wednesday, June 25th. Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a research note on Friday, May 9th. Robert W. Baird decreased their target price on Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a research note on Thursday, April 24th. JPMorgan Chase & Co. boosted their target price on Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 27th. Finally, Morgan Stanley set a $505.00 price objective on Watsco in a research note on Wednesday, July 2nd. One investment analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $484.17.

Watsco Profile

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.