Watsco, Inc. $WSO Stake Boosted by Caledonia Investments PLC

Key Points

• Caledonia Investments increased its Watsco stake by 12.2% in the third quarter, bringing its holdings to 261,439 shares valued at approximately $79.1 million. Institutional investors collectively own 89.71% of Watsco.
• Analyst sentiment is predominantly neutral: Watsco has a consensus “Hold” rating and an average price target of $386.12, despite individual ratings ranging from “Strong Sell” to “Overweight.”
• Watsco’s shares opened at $286.18, near their one-year low, after the company missed quarterly earnings and revenue estimates. The company also announced a quarterly dividend of $3.30 per share, equivalent to a 4.6% annualized yield.

Caledonia Investments PLC boosted its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 12.2% during the third quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 261,439 shares of the construction company's stock after acquiring an additional 28,512 shares during the quarter. Watsco accounts for about 10.0% of Caledonia Investments PLC's investment portfolio, making the stock its 4th largest position. Caledonia Investments PLC owned 0.63% of Watsco worth $79,072,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of WSO. Bayban purchased a new position in shares of Watsco during the fourth quarter worth about $29,000. Western Wealth Management LLC bought a new stake in Watsco during the first quarter valued at approximately $41,000. Versant Capital Management Inc lifted its position in Watsco by 293.3% during the second quarter. Versant Capital Management Inc now owns 118 shares of the construction company's stock valued at $49,000 after purchasing an additional 88 shares during the last quarter. N.E.W. Advisory Services LLC bought a new stake in Watsco during the second quarter valued at approximately $67,000. Finally, Jones Financial Companies Lllp purchased a new position in Watsco in the 2nd quarter worth approximately $71,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Analyst Ratings Changes

WSO has been the topic of several research reports. Stephens restated an "overweight" rating and set a $485.00 price objective on shares of Watsco in a research report on Monday, August 17th. Morgan Stanley dropped their price objective on shares of Watsco from $370.00 to $330.00 and set an "equal weight" rating for the company in a report on Monday. Zacks Research lowered shares of Watsco from a "hold" rating to a "strong sell" rating in a research report on Tuesday, September 22nd. Robert W. Baird set a $400.00 target price on Watsco in a research note on Thursday, July 30th. Finally, Weiss Ratings cut Watsco from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, October 6th. Two equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $386.12.

Watsco Price Performance

NYSE:WSO opened at $286.18 on Tuesday. The business has a 50 day moving average of $310.43 and a 200 day moving average of $362.07. The company has a market capitalization of $11.80 billion, a price-to-earnings ratio of 24.82 and a beta of 1.06. Watsco, Inc. has a 1-year low of $277.34 and a 1-year high of $459.00.

Watsco (NYSE:WSO - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing analysts' consensus estimates of $4.41 by ($0.41). The business had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. Watsco had a net margin of 6.53% and a return on equity of 14.40%. The firm's revenue was up 2.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.52 earnings per share. As a group, sell-side analysts anticipate that Watsco, Inc. will post 12.22 EPS for the current year.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be given a $3.30 dividend. This represents a $13.20 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date is Friday, October 16th. Watsco's dividend payout ratio (DPR) is presently 114.48%.

Watsco Company Profile

Watsco, Inc NYSE: WSO is a distributor of heating, air conditioning and refrigeration equipment and related products. The company supplies residential and commercial contractors with air conditioners, heat pumps, furnaces, refrigeration systems, indoor air-quality products, controls, replacement parts and other installation supplies.

Watsco serves the replacement and new-construction markets through a network of distribution centers, branches, showrooms and e-commerce platforms. Its customers primarily include HVAC and refrigeration contractors, dealers and other industry professionals, while its products are sourced from major manufacturers and distributed under leading industry brands.

Founded in 1956, Watsco has expanded through organic growth and acquisitions to become one of the largest HVAC and refrigeration distributors in North America.

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