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

Key Points

• Watsco, Inc. has received a consensus recommendation of "Hold" from seven research firms, with an average price target of $484.17.
• Recent quarterly earnings reported an EPS of $4.52, missing the estimate of $4.84, and a revenue of $2.06 billion compared to expectations of $2.24 billion.
• The company announced a quarterly dividend of $3.00 per share, yielding 2.9%, with a high dividend payout ratio of 92.02%.

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

Several research analysts have recently issued reports on WSO shares. Morgan Stanley set a $505.00 price objective on Watsco in a research report on Wednesday, July 2nd. JPMorgan Chase & Co. boosted their target price on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a report on Tuesday, May 27th. Wall Street Zen raised Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. Finally, UBS Group reduced their target price on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a report on Wednesday, June 25th.

Institutional Trading of Watsco

Institutional investors and hedge funds have recently made changes to their positions in the company. OneDigital Investment Advisors LLC purchased a new position in shares of Watsco during the 1st quarter worth approximately $266,000. Teacher Retirement System of Texas acquired a new stake in Watsco during the 1st quarter valued at $2,588,000. Golden State Wealth Management LLC grew its holdings in Watsco by 109.4% during the 1st quarter. Golden State Wealth Management LLC now owns 222 shares of the construction company's stock valued at $113,000 after buying an additional 116 shares during the last quarter. SG Americas Securities LLC grew its holdings in Watsco by 133.1% during the 1st quarter. SG Americas Securities LLC now owns 844 shares of the construction company's stock valued at $429,000 after buying an additional 482 shares during the last quarter. Finally, Fifth Third Bancorp lifted its stake in shares of Watsco by 4.8% during the 1st quarter. Fifth Third Bancorp now owns 1,028 shares of the construction company's stock worth $523,000 after purchasing an additional 47 shares during the period. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Stock Performance

Shares of NYSE:WSO traded down $5.9750 on Thursday, hitting $409.8250. 100,475 shares of the company's stock were exchanged, compared to its average volume of 301,274. The firm's 50-day moving average is $444.46 and its 200 day moving average is $469.29. The company has a market capitalization of $16.62 billion, a PE ratio of 31.43 and a beta of 0.95. Watsco has a 1-year low of $397.73 and a 1-year high of $571.41.

Watsco (NYSE:WSO - Get Free Report) last released 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). The business had revenue of $2.06 billion for the quarter, compared to analyst estimates of $2.24 billion. Watsco had a return on equity of 16.96% and a net margin of 7.08%.The company's revenue was down 3.6% compared to the same quarter last year. During the same period in the prior year, the company posted $4.49 earnings per share. On average, analysts anticipate that Watsco will post 14.62 EPS for the current fiscal year.

Watsco Announces Dividend

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

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.