Watsco (NYSE:WSO) Hits New 52-Week Low - Here's Why

Key Points

• Watsco shares reached a new 52-week low of $403.01, closing at $415.32, indicating a significant decline in stock performance.
• The company reported earnings per share (EPS) of $4.52 for the last quarter, missing analysts' expectations by $0.32, with revenue down 3.6% year-over-year.
• Watsco declared a quarterly dividend of $3.00 per share, resulting in a 2.9% dividend yield, with a high payout ratio of 92.02%.

Watsco, Inc. (NYSE:WSO - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $403.01 and last traded at $415.32, with a volume of 329793 shares changing hands. The stock had previously closed at $410.83.

Wall Street Analyst Weigh In

WSO has been the topic of several analyst reports. JPMorgan Chase & Co. lifted their target price on Watsco from $445.00 to $460.00 and gave the company a "neutral" rating in a research report on Tuesday, May 27th. Morgan Stanley set a $505.00 target price on Watsco in a research report on Wednesday, July 2nd. Wall Street Zen raised Watsco from a "sell" rating to a "hold" rating in a research report on Friday, May 9th. Robert W. Baird cut their target price on Watsco from $560.00 to $540.00 and set an "outperform" rating on the stock in a research report on Thursday, April 24th. Finally, Mizuho set a $490.00 price objective on Watsco in a research report on Thursday, April 24th. Seven equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $484.17.

Watsco Stock Down 2.5%

The company has a 50-day simple moving average of $448.07 and a two-hundred day simple moving average of $472.48. The firm has a market cap of $17.09 billion, a PE ratio of 32.36 and a beta of 0.95.

Watsco (NYSE:WSO - Get Free Report) last posted its quarterly earnings data 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 return on equity of 16.96% and a net margin of 7.08%. The business had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same period in the prior year, the firm posted $4.49 EPS. The firm's revenue for the quarter was down 3.6% on a year-over-year basis. As a group, equities analysts predict that Watsco, Inc. will post 14.62 earnings per share for the current year.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Wednesday, July 16th were given a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Wednesday, July 16th. Watsco's dividend payout ratio is currently 92.02%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in WSO. Opal Wealth Advisors LLC bought a new stake in shares of Watsco during the 1st quarter valued at $25,000. Manitou Investment Management Ltd. bought a new stake in shares of Watsco during the 1st quarter valued at $25,000. WPG Advisers LLC bought a new stake in shares of Watsco during the 1st quarter valued at $25,000. TCTC Holdings LLC raised its stake in shares of Watsco by 115.4% during the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after purchasing an additional 30 shares during the period. Finally, City Holding Co. bought a new stake in shares of Watsco during the 1st quarter valued at $29,000. 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.