Watsco (NYSE:WSO) Hits New 12-Month Low Following Analyst Downgrade

Key Points

• Watsco's shares reached a new 52-week low of $350.00 following a downgrade from JPMorgan Chase & Co., who lowered their price target from $425.00 to $400.00.
• Despite some analysts maintaining a "neutral" rating, the stock currently has an average target price of $462.50, with one analyst rating it a Buy.
• The company recently announced a quarterly dividend of $3.00 per share, resulting in an annualized dividend yield of 3.3% and a payout ratio of 92.02%.

Watsco, Inc. (NYSE:WSO - Get Free Report) shares hit a new 52-week low during trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $425.00 to $400.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Watsco traded as low as $350.00 and last traded at $360.02, with a volume of 747497 shares. The stock had previously closed at $366.36.

Several other brokerages also recently weighed in on WSO. UBS Group cut their target price on Watsco from $450.00 to $425.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 23rd. William Blair reaffirmed a "market perform" rating on shares of Watsco in a research note on Wednesday. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Watsco in a research note on Wednesday, October 8th. Finally, Morgan Stanley cut their target price on Watsco from $505.00 to $460.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 8th. One research analyst has rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $462.50.

Institutional Trading of Watsco

A number of hedge funds and other institutional investors have recently modified their holdings of WSO. Opal Wealth Advisors LLC bought a new stake in shares of Watsco in the 1st quarter worth $25,000. WPG Advisers LLC bought a new stake in shares of Watsco in the 1st quarter worth $25,000. Ameritas Advisory Services LLC bought a new stake in shares of Watsco in the 2nd quarter worth $26,000. TCTC Holdings LLC raised its stake in shares of Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock worth $28,000 after buying an additional 30 shares in the last quarter. Finally, Rossby Financial LCC bought a new stake in shares of Watsco in the 1st quarter worth $33,000. Institutional investors own 89.71% of the company's stock.

Watsco Stock Down 1.7%

The business has a 50-day moving average price of $400.35 and a 200-day moving average price of $442.24. The company has a market capitalization of $14.60 billion, a price-to-earnings ratio of 27.61 and a beta of 0.94.

Watsco (NYSE:WSO - Get Free Report) last announced its 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 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 firm's revenue for the quarter was down 3.6% on a year-over-year basis. During the same period last year, the firm earned $4.49 earnings per share. As a group, sell-side analysts predict that Watsco, Inc. will post 14.62 EPS for the current year.

Watsco Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Thursday, October 16th will be given a dividend of $3.00 per share. The ex-dividend date of this dividend is Thursday, October 16th. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.3%. Watsco's payout ratio is 92.02%.

Watsco Company 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.

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