Watsco (NYSE:WSO) Sees Unusually-High Trading Volume - Here's Why

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 were traded during mid-day 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 Analysts Forecast Growth

Several brokerages recently commented on WSO. Morgan Stanley set a $505.00 price objective on shares of Watsco in a research note on Wednesday, July 2nd. UBS Group lowered their price target on shares of Watsco from $450.00 to $425.00 and set a "neutral" rating for the company in a report on Tuesday. Finally, JPMorgan Chase & Co. upped their price objective on shares of Watsco from $445.00 to $460.00 and gave the stock a "neutral" rating in a report on Tuesday, May 27th. One investment analyst has rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $480.00.

Watsco Trading Up 0.1%

The company has a market capitalization of $15.89 billion, a PE ratio of 30.08 and a beta of 0.96. The business's 50-day simple moving average is $424.22 and its 200-day simple moving average is $455.13.

Watsco (NYSE:WSO - Get Free Report) last posted its earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share for the quarter, missing the consensus estimate of $4.84 by ($0.32). Watsco had a net margin of 7.08% and a return on equity of 16.96%. The firm had revenue of $2.06 billion for the quarter, compared to analysts' expectations of $2.24 billion. During the same period last year, the firm earned $4.49 earnings per share. Watsco's revenue for the quarter was down 3.6% compared to the same quarter last year. Sell-side analysts forecast that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were paid a dividend of $3.00 per share. 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 dividend payout ratio is presently 92.02%.

Hedge Funds Weigh In On Watsco

Several hedge funds have recently added to or reduced their stakes in WSO. Vident Advisory LLC increased its stake in Watsco by 12.7% in the fourth quarter. Vident Advisory LLC now owns 1,495 shares of the construction company's stock valued at $709,000 after purchasing an additional 169 shares during the last quarter. Voloridge Investment Management LLC boosted its holdings in shares of Watsco by 12.6% in the fourth quarter. Voloridge Investment Management LLC now owns 9,576 shares of the construction company's stock valued at $4,538,000 after acquiring an additional 1,074 shares during the period. Toronto Dominion Bank boosted its holdings in shares of Watsco by 6.9% in the fourth quarter. Toronto Dominion Bank now owns 4,552 shares of the construction company's stock valued at $2,157,000 after acquiring an additional 294 shares during the period. Great Valley Advisor Group Inc. boosted its holdings in shares of Watsco by 9.4% in the fourth quarter. Great Valley Advisor Group Inc. now owns 9,623 shares of the construction company's stock valued at $4,560,000 after acquiring an additional 830 shares during the period. Finally, B. Riley Wealth Advisors Inc. lifted its holdings in shares of Watsco by 2.5% during the fourth quarter. B. Riley Wealth Advisors Inc. now owns 2,080 shares of the construction company's stock worth $986,000 after purchasing an additional 50 shares during the period. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

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.