Watsco, Inc. $WSO Stock: AEGON ASSET MANAGEMENT UK Plc Cuts Stake

Key Points

• AEGON Asset Management UK cut its Watsco stake by 84.8% in the third quarter, selling 88,166 shares and retaining 15,799 shares valued at about $4.8 million. Institutional investors overall own 89.71% of the company’s stock.
• Watsco reported quarterly EPS of $3.77, below the $4.10 analyst consensus, while revenue of $2.22 billion slightly exceeded expectations and rose 7.4% year over year.
• Analysts’ consensus rating is Hold, with an average price target of $373.62. The company paid a quarterly dividend of $3.30 per share, equivalent to a 4.2% yield at the article’s stated share price.

AEGON ASSET MANAGEMENT UK Plc lessened its stake in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 84.8% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 15,799 shares of the construction company's stock after selling 88,166 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc's holdings in Watsco were worth $4,782,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Markel Group Inc. lifted its stake in Watsco by 4.2% in the 3rd quarter. Markel Group Inc. now owns 623,010 shares of the construction company's stock worth $188,579,000 after purchasing an additional 25,260 shares in the last quarter. Confluence Investment Management LLC purchased a new position in shares of Watsco during the 3rd quarter valued at $96,991,000. Bank of America Corp DE purchased a new position in shares of Watsco during the 2nd quarter valued at $119,291,000. Caledonia Investments PLC grew its position in shares of Watsco by 12.2% during the 3rd quarter. Caledonia Investments PLC now owns 261,439 shares of the construction company's stock valued at $79,072,000 after purchasing an additional 28,512 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Watsco in the second quarter worth $97,937,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on WSO. Stephens reiterated an "overweight" rating and issued a $485.00 price objective on shares of Watsco in a research report on Monday, August 17th. Weiss Ratings lowered Watsco from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, October 6th. Mizuho reduced their target price on Watsco from $350.00 to $325.00 and set a "neutral" rating for the company in a research report on Thursday, October 15th. Robert W. Baird set a $400.00 target price on Watsco in a research report on Thursday, July 30th. Finally, DA Davidson decreased their target price on Watsco from $385.00 to $330.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $373.62.

Watsco Price Performance

Shares of NYSE:WSO opened at $311.68 on Wednesday. The company's fifty day moving average price is $306.15 and its 200-day moving average price is $363.37. The firm has a market capitalization of $12.86 billion, a price-to-earnings ratio of 27.53 and a beta of 1.03. Watsco, Inc. has a one year low of $277.34 and a one year high of $459.00.

Watsco (NYSE:WSO - Get Free Report) last announced its earnings results on Tuesday, October 27th. The construction company reported $3.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.10 by ($0.33). The company had revenue of $2.22 billion during the quarter, compared to analysts' expectations of $2.21 billion. Watsco had a return on equity of 13.97% and a net margin of 6.31%. The firm's revenue was up 7.4% on a year-over-year basis. During the same quarter last year, the firm posted $3.98 earnings per share. As a group, equities research analysts expect that Watsco, Inc. will post 11.70 EPS for the current year.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Friday, October 16th were issued a $3.30 dividend. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date was Friday, October 16th. Watsco's dividend payout ratio is presently 116.61%.

Watsco Profile

Watsco, Inc. distributes air-conditioning, heating, and refrigeration equipment and related parts and supplies. Its products serve residential and light commercial applications, including systems used in homes and businesses, as well as components and supplies for contractors who install and maintain them. The company sells products from a range of manufacturers through a network of distribution locations and digital platforms. Watsco serves customers in the United States, Canada, Mexico, and parts of Latin America and the Caribbean, supporting the installation, repair, and replacement of HVAC and refrigeration systems.

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