Watsco, Inc. (NYSE:WSO) Given Average Rating of "Hold" by Brokerages

Key Points

• Watsco, Inc. has received a consensus rating of "Hold" from seven research firms, with six analysts recommending a hold and one a buy.
• The company reported earnings of $4.52 per share for its last quarter, missing analysts' estimates and showing a 3.6% decline in revenue compared to the previous year.
• Watsco declared a quarterly dividend of $3.00 per share, providing an annualized yield of 3.1%, with a payout ratio of 92.02%.

Shares of Watsco, Inc. (NYSE:WSO - Get Free Report) have earned a consensus rating of "Hold" from the seven research firms that are currently covering the stock, MarketBeat Ratings reports. Six analysts have rated the stock with a hold recommendation and one has assigned a buy recommendation to the company. The average 12-month price objective among brokerages that have issued a report on the stock in the last year is $484.1667.

WSO has been the topic of a number of research reports. JPMorgan Chase & Co. raised their price objective on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Morgan Stanley set a $505.00 price objective on Watsco in a report on Wednesday, July 2nd. Finally, UBS Group decreased their price objective on Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a report on Wednesday, June 25th.

Watsco Stock Performance

Watsco stock opened at $381.84 on Monday. The company's fifty day moving average price is $433.70 and its 200 day moving average price is $459.74. Watsco has a 1 year low of $378.35 and a 1 year high of $571.41. The stock has a market capitalization of $15.48 billion, a P/E ratio of 29.28 and a beta of 0.96.

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 (EPS) for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). The company had revenue of $2.06 billion during the quarter, compared to analyst estimates of $2.24 billion. Watsco had a net margin of 7.08% and a return on equity of 16.96%. Watsco's revenue was down 3.6% compared to the same quarter last year. During the same period in the prior year, the business posted $4.49 EPS. Sell-side analysts predict that Watsco will post 14.62 EPS for the current year.

Watsco Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Wednesday, July 16th were issued a dividend of $3.00 per share. This represents a $12.00 annualized dividend and a dividend yield of 3.1%. The ex-dividend date was Wednesday, July 16th. Watsco's payout ratio is currently 92.02%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Osaic Holdings Inc. raised its holdings in shares of Watsco by 40.8% during the 2nd quarter. Osaic Holdings Inc. now owns 10,118 shares of the construction company's stock worth $4,659,000 after acquiring an additional 2,931 shares during the period. Centaurus Financial Inc. raised its holdings in shares of Watsco by 2.0% during the 2nd quarter. Centaurus Financial Inc. now owns 7,097 shares of the construction company's stock worth $3,134,000 after acquiring an additional 138 shares during the period. Orion Porfolio Solutions LLC raised its holdings in shares of Watsco by 2.3% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 7,104 shares of the construction company's stock worth $3,138,000 after acquiring an additional 161 shares during the period. Caxton Associates LLP purchased a new position in shares of Watsco during the 2nd quarter worth $714,000. Finally, Parr Mcknight Wealth Management Group LLC acquired a new stake in shares of Watsco during the 2nd quarter worth about $1,118,000. Hedge funds and other institutional investors own 89.71% of the company's stock.

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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