Weiss Ratings Reaffirms Hold (C+) Rating for Watsco (NYSE:WSO)

Key Points

• Weiss Ratings has reaffirmed a "Hold (C+)" rating for Watsco (NYSE: WSO), reflecting cautious sentiment towards the stock.
• Recent price target adjustments from analysts like UBS and Morgan Stanley have lowered Watsco's price goals to $425.00 and $460.00, respectively.
• Watsco reported quarterly earnings of $4.52 per share, missing the consensus estimate by $0.32, with a year-over-year revenue decline of 3.6%.

Watsco (NYSE:WSO - Get Free Report)'s stock had its "hold (c+)" rating restated by stock analysts at Weiss Ratings in a note issued to investors on Wednesday,Weiss Ratings reports.

WSO has been the subject of several other research reports. UBS Group cut their price objective on Watsco from $450.00 to $425.00 and set a "neutral" rating for the company in a report on Tuesday, September 23rd. Morgan Stanley cut their price objective on Watsco from $505.00 to $460.00 and set an "equal weight" rating for the company in a report on Wednesday. One research analyst has rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $472.50.

Watsco Price Performance

Shares of WSO traded up $1.57 during midday trading on Wednesday, hitting $397.91. 97,501 shares of the company traded hands, compared to its average volume of 333,446. The stock has a 50-day moving average of $407.68 and a 200-day moving average of $447.56. Watsco has a one year low of $378.35 and a one year high of $571.41. The firm has a market cap of $16.14 billion, a P/E ratio of 30.55 and a beta of 0.94.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings results 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 net margin of 7.08% and a return on equity of 16.96%. The company had revenue of $2.06 billion for the quarter, compared to the consensus estimate of $2.24 billion. During the same quarter in the prior year, the company earned $4.49 earnings per share. The company's quarterly revenue was down 3.6% on a year-over-year basis. Sell-side analysts forecast that Watsco will post 14.62 EPS for the current fiscal year.

Institutional Trading of Watsco

Several hedge funds and other 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 valued at approximately $266,000. Goldman Sachs Group Inc. boosted its stake in shares of Watsco by 62.8% during the first quarter. Goldman Sachs Group Inc. now owns 468,875 shares of the construction company's stock valued at $238,329,000 after purchasing an additional 180,951 shares during the period. Teacher Retirement System of Texas purchased a new stake in shares of Watsco during the first quarter valued at approximately $2,588,000. Golden State Wealth Management LLC boosted 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 purchasing an additional 116 shares during the period. Finally, Voya Investment Management LLC boosted 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 purchasing an additional 3,045 shares during the period. 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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