Watsco (NYSE:WSO) Sees Unusually-High Trading Volume - Should You Buy?

Key Points

• Watsco, Inc. experienced a significant increase in trading volume, with approximately 537,123 shares traded, representing a 69% increase from the previous session.
• Analysts have varied opinions on Watsco's stock, with target prices ranging from $450.00 to $505.00, while the average target price is currently $484.17.
• The company declared a quarterly dividend of $3.00, which equates to an annualized dividend of $12.00 and a dividend yield of 3.1%.

Shares of Watsco, Inc. (NYSE:WSO - Get Free Report) saw unusually-strong trading volume on Monday . Approximately 537,123 shares changed hands during trading, an increase of 69% from the previous session's volume of 318,325 shares.The stock last traded at $391.25 and had previously closed at $389.85.

Wall Street Analyst Weigh In

Several research analysts have recently commented on WSO shares. Morgan Stanley set a $505.00 target price on Watsco in a research note on Wednesday, July 2nd. UBS Group reduced their target price on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a research note on Wednesday, June 25th. Finally, JPMorgan Chase & Co. boosted their price target on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research note on Tuesday, May 27th. One investment analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $484.17.

Watsco Stock Performance

The business has a fifty day simple moving average of $425.83 and a 200-day simple moving average of $455.99. The firm has a market cap of $15.89 billion, a price-to-earnings ratio of 30.01 and a beta of 0.96.

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

Watsco Announces Dividend

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

Institutional Investors Weigh In On Watsco

A number of institutional investors have recently made changes to their positions in WSO. Centennial Wealth Advisory LLC boosted its position in shares of Watsco by 2.9% during the 1st quarter. Centennial Wealth Advisory LLC now owns 776 shares of the construction company's stock valued at $395,000 after purchasing an additional 22 shares in the last quarter. Trust Co. of Vermont boosted its position in shares of Watsco by 10.2% during the 2nd quarter. Trust Co. of Vermont now owns 238 shares of the construction company's stock valued at $105,000 after purchasing an additional 22 shares in the last quarter. Cary Street Partners Financial LLC boosted its position in shares of Watsco by 2.2% during the 1st quarter. Cary Street Partners Financial LLC now owns 1,073 shares of the construction company's stock valued at $545,000 after purchasing an additional 23 shares in the last quarter. Freedom Investment Management Inc. boosted its position in shares of Watsco by 4.8% during the 1st quarter. Freedom Investment Management Inc. now owns 504 shares of the construction company's stock valued at $256,000 after purchasing an additional 23 shares in the last quarter. Finally, Valeo Financial Advisors LLC boosted its position in shares of Watsco by 2.3% during the 1st quarter. Valeo Financial Advisors LLC now owns 1,056 shares of the construction company's stock valued at $537,000 after purchasing an additional 24 shares in the last quarter. Institutional investors own 89.71% of the company's stock.

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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