Watsco (NYSE:WSO) Sets New 1-Year Low - Should You Sell?

Key Points

• Watsco, Inc. shares hit a new 52-week low at $417.73, indicating a significant decline, as it previously closed at $428.25.
• Research firms have mixed ratings on Watsco, with the average target price set at $484.17, while several analysts maintain a "hold" rating.
• The company reported a quarterly earnings miss with $4.52 EPS, falling short of the consensus estimate of $4.84, alongside a revenue decline of 3.6% year-over-year.

Watsco, Inc. (NYSE:WSO - Get Free Report) shares reached a new 52-week low during mid-day trading on Wednesday . The company traded as low as $417.73 and last traded at $419.64, with a volume of 188915 shares. The stock had previously closed at $428.25.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on WSO. Mizuho set a $490.00 price objective on Watsco in a report on Thursday, April 24th. JPMorgan Chase & Co. raised their price target 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 upgraded Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. Robert W. Baird reduced their price objective on Watsco from $560.00 to $540.00 and set an "outperform" rating for the company in a report on Thursday, April 24th. Finally, UBS Group reduced their price objective on Watsco from $455.00 to $450.00 and set a "neutral" rating for the company in a report on Wednesday, June 25th. Seven research analysts have rated the stock with a hold rating and one has issued a buy rating to the company's stock. According to data from MarketBeat, Watsco has an average rating of "Hold" and an average target price of $484.17.

Watsco Stock Performance

The firm has a market capitalization of $16.94 billion, a PE ratio of 32.07 and a beta of 0.95. The company has a fifty day moving average price of $450.90 and a 200-day moving average price of $475.66.

Watsco (NYSE:WSO - Get Free Report) last issued 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). Watsco had a return on equity of 16.96% and a net margin of 7.08%. 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 company earned $4.49 earnings per share. The firm's revenue was down 3.6% on a year-over-year basis. On average, equities analysts predict 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. Investors of record on Wednesday, July 16th were issued a dividend of $3.00 per share. This represents a $12.00 annualized dividend and a yield of 2.9%. The ex-dividend date was Wednesday, July 16th. Watsco's dividend payout ratio is presently 92.02%.

Institutional Trading of Watsco

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Opal Wealth Advisors LLC purchased a new stake in Watsco during the 1st quarter valued at $25,000. Manitou Investment Management Ltd. bought a new stake in Watsco during the 1st quarter valued at $25,000. WPG Advisers LLC purchased a new position in shares of Watsco during the first quarter valued at $25,000. TCTC Holdings LLC increased its stake in shares of Watsco by 115.4% during the first quarter. TCTC Holdings LLC now owns 56 shares of the construction company's stock valued at $28,000 after buying an additional 30 shares during the period. Finally, City Holding Co. bought a new stake in Watsco during the first quarter valued at about $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.

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