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

Key Points

• Watsco, Inc. hit a new 52-week low, trading as low as $393.41, and last traded at $398.36 with a volume of 22,562 shares.
• The company recently posted quarterly earnings of $4.52 EPS, missing estimates of $4.84, with revenue down 3.6% year-over-year.
• Watsco announced a quarterly dividend of $3.00, equating to an annualized yield of 3.1%, with a payout ratio of 92.02%.

Watsco, Inc. (NYSE:WSO - Get Free Report) shares reached a new 52-week low during trading on Tuesday . The company traded as low as $393.41 and last traded at $398.36, with a volume of 22562 shares changing hands. The stock had previously closed at $402.38.

Wall Street Analyst Weigh In

WSO has been the topic of a number of recent analyst reports. UBS Group dropped their price objective on Watsco from $455.00 to $450.00 and set a "neutral" rating on the stock in a report on Wednesday, June 25th. JPMorgan Chase & Co. increased their price objective 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 target on Watsco in a report on Wednesday, July 2nd. Finally, Wall Street Zen raised Watsco from a "sell" rating to a "hold" rating in a report on Friday, May 9th. One equities research analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Watsco presently has a consensus rating of "Hold" and an average price target of $484.17.

Watsco Price Performance

The company has a 50-day moving average price of $439.49 and a two-hundred day moving average price of $464.03. The company has a market cap of $16.56 billion, a PE ratio of 31.32 and a beta of 0.95.

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

Watsco Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Investors of record on Wednesday, July 16th were issued a $3.00 dividend. The ex-dividend date of this dividend was Wednesday, July 16th. This represents a $12.00 dividend on an annualized basis and a yield of 2.9%. Watsco's dividend payout ratio is currently 92.02%.

Institutional Trading of Watsco

Several institutional investors and hedge funds have recently bought and sold shares of the company. Manitou Investment Management Ltd. acquired a new stake in shares of Watsco during the 1st quarter worth approximately $25,000. Opal Wealth Advisors LLC bought a new position in Watsco during the 1st quarter valued at $25,000. WPG Advisers LLC bought a new position in Watsco during the 1st quarter valued at $25,000. Ameritas Advisory Services LLC bought a new position in Watsco during the 2nd quarter valued at $26,000. Finally, TCTC Holdings LLC boosted its stake in 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 in the last quarter. Institutional investors and hedge funds own 89.71% of the company's stock.

Watsco Company Profile

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.