Watsco (NYSE:WSO) Sets New 12-Month Low - What's Next?

Key Points

• Watsco's stock reached a new 52-week low of $387.12 during recent trading, with its last trading price at $392.99.
• Analysts have varying views on Watsco; while JPMorgan Chase upgraded its target price to $460.00, UBS lowered it to $450.00, with an average target price of $484.17 reflecting a general "Hold" rating.
• The company reported a quarterly loss in earnings, posting $4.52 per share, which was below analyst expectations of $4.84, indicating a 3.6% decline in revenue year-over-year.

Watsco, Inc. (NYSE:WSO - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday . The stock traded as low as $387.12 and last traded at $392.99, with a volume of 194102 shares trading hands. The stock had previously closed at $401.79.

Analyst Ratings Changes

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

Watsco Stock Performance

The company has a market cap of $15.85 billion, a price-to-earnings ratio of 29.98 and a beta of 0.95. The company has a 50-day simple moving average of $437.74 and a 200-day simple moving average of $462.29.

Watsco (NYSE:WSO - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The construction company reported $4.52 earnings per share for the quarter, missing analysts' consensus estimates of $4.84 by ($0.32). Watsco had a net margin of 7.08% and a return on equity of 16.96%. The business had revenue of $2.06 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same quarter last year, the firm earned $4.49 earnings per share. The firm's quarterly revenue was down 3.6% compared to the same quarter last year. As a group, equities research analysts forecast that Watsco, Inc. will post 14.62 EPS 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 $3.00 dividend. The ex-dividend date was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.1%. Watsco's dividend payout ratio (DPR) is currently 92.02%.

Institutional Trading of Watsco

Large investors have recently modified their holdings of the business. OneDigital Investment Advisors LLC purchased a new position in Watsco in the 1st quarter valued at about $266,000. Teacher Retirement System of Texas acquired a new position in shares of Watsco in the first quarter valued at approximately $2,588,000. Golden State Wealth Management LLC raised its position in shares of Watsco by 109.4% in 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. SG Americas Securities LLC lifted its stake in shares of Watsco by 133.1% during the first quarter. SG Americas Securities LLC now owns 844 shares of the construction company's stock valued at $429,000 after buying an additional 482 shares during the period. Finally, Fifth Third Bancorp boosted its position in Watsco by 4.8% during the first quarter. Fifth Third Bancorp now owns 1,028 shares of the construction company's stock worth $523,000 after acquiring an additional 47 shares during the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

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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