T. Rowe Price Investment Management Inc. Lowers Stake in Watsco, Inc. $WSO

Key Points

• T. Rowe Price Investment Management Inc. reduced its stake in Watsco, Inc. by 1.4% during the first quarter, owning 53,643 shares valued at approximately $27.27 million after selling 767 shares.
• Watsco recently reported $4.52 earnings per share for the last quarter, falling short of the expected $4.84, with a year-over-year revenue decline of 3.6%.
• The company declared a quarterly dividend of $3.00 per share, resulting in an annualized dividend yield of 2.9%, with a payout ratio of 92.02%.

T. Rowe Price Investment Management Inc. reduced its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 1.4% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 53,643 shares of the construction company's stock after selling 767 shares during the period. T. Rowe Price Investment Management Inc. owned 0.13% of Watsco worth $27,267,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of WSO. Opal Wealth Advisors LLC acquired a new position in shares of Watsco in the 1st quarter valued at $25,000. Manitou Investment Management Ltd. bought a new stake in Watsco during the first quarter worth about $25,000. TCTC Holdings LLC grew its stake in shares of Watsco by 115.4% in the first quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after buying an additional 30 shares in the last quarter. City Holding Co. bought a new stake in Watsco in the 1st quarter valued at $29,000. Finally, Rossby Financial LCC acquired a new stake in shares of Watsco in the first quarter valued at approximately $33,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Price Performance

NYSE WSO traded down $6.93 during mid-day trading on Thursday, reaching $401.74. The stock had a trading volume of 107,735 shares, compared to its average volume of 301,789. The company has a fifty day moving average price of $443.41 and a 200 day moving average price of $468.05. Watsco, Inc. has a 1 year low of $397.73 and a 1 year high of $571.41. The stock has a market cap of $16.29 billion, a PE ratio of 30.83 and a beta of 0.95.

Watsco (NYSE:WSO - Get Free Report) last released its quarterly 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). The firm had revenue of $2.06 billion for the quarter, compared to the consensus estimate of $2.24 billion. Watsco had a net margin of 7.08% and a return on equity of 16.96%. During the same period in the previous year, the company earned $4.49 earnings per share. Watsco's quarterly revenue was down 3.6% compared to the same quarter last year. As a group, equities research analysts expect that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Wednesday, July 16th were paid a dividend of $3.00 per share. This represents a $12.00 annualized dividend and a yield of 3.0%. The ex-dividend date of this dividend was Wednesday, July 16th. Watsco's payout ratio is presently 92.02%.

Wall Street Analysts Forecast Growth

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