Watsco (NYSE:WSO) Sets New 12-Month Low - Time to Sell?

Key Points

• Watsco's stock reached a new 12-month low, trading as low as $376.10, with a current trading price of $378.55.
• Analysts have downgraded Watsco's price targets, with Morgan Stanley reducing it from $505.00 to $460.00 and UBS cutting it from $450.00 to $425.00, indicating a cautionary outlook.
• The company will pay a quarterly $3.00 dividend on October 31st, representing an annualized yield of 3.2%.

Watsco, Inc. (NYSE:WSO - Get Free Report)'s stock price reached a new 52-week low on Friday . The stock traded as low as $376.10 and last traded at $378.55, with a volume of 46171 shares. The stock had previously closed at $380.64.

Analyst Ratings Changes

Several analysts recently weighed in on the company. Morgan Stanley dropped their price target on Watsco from $505.00 to $460.00 and set an "equal weight" rating for the company in a report on Wednesday. Weiss Ratings reiterated a "hold (c+)" rating on shares of Watsco in a research note on Wednesday. Finally, UBS Group cut their price objective on Watsco from $450.00 to $425.00 and set a "neutral" rating on the stock in a report on Tuesday, September 23rd. One research analyst has rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $472.50.

Watsco Trading Down 2.0%

The firm has a market capitalization of $15.12 billion, a P/E ratio of 28.60 and a beta of 0.94. The business has a 50-day moving average of $405.31 and a 200 day moving average of $446.29.

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

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Thursday, October 16th will be paid a $3.00 dividend. The ex-dividend date is Thursday, October 16th. This represents a $12.00 annualized dividend and a yield of 3.2%. Watsco's dividend payout ratio is presently 92.02%.

Hedge Funds Weigh In On Watsco

Institutional investors have recently bought and sold shares of the company. OneDigital Investment Advisors LLC purchased a new stake in shares of Watsco during the first quarter worth $266,000. Goldman Sachs Group Inc. increased its stake in Watsco by 62.8% in the first quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company's stock valued at $238,329,000 after acquiring an additional 180,951 shares during the last quarter. Teacher Retirement System of Texas bought a new position in shares of Watsco during the first quarter valued at about $2,588,000. Golden State Wealth Management LLC grew its stake in shares of Watsco by 109.4% during the first quarter. Golden State Wealth Management LLC now owns 222 shares of the construction company's stock valued at $113,000 after buying an additional 116 shares during the last quarter. Finally, Voya Investment Management LLC grew its stake in shares of Watsco by 23.1% during the first quarter. Voya Investment Management LLC now owns 16,218 shares of the construction company's stock valued at $8,244,000 after buying an additional 3,045 shares during the last quarter. 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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