Gateway Investment Advisers LLC Trims Stake in Watsco, Inc. (NYSE:WSO)

Gateway Investment Advisers LLC lowered its position in Watsco, Inc. (NYSE:WSO) by 27.7% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,916 shares of the construction company’s stock after selling 1,116 shares during the quarter. Gateway Investment Advisers LLC’s holdings in Watsco were worth $1,482,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also made changes to their positions in WSO. JPMorgan Chase & Co. raised its stake in shares of Watsco by 9.9% in the third quarter. JPMorgan Chase & Co. now owns 464,061 shares of the construction company’s stock valued at $228,263,000 after acquiring an additional 41,845 shares during the period. abrdn plc raised its stake in shares of Watsco by 0.4% in the fourth quarter. abrdn plc now owns 15,052 shares of the construction company’s stock valued at $7,174,000 after acquiring an additional 56 shares during the period. Choreo LLC raised its stake in shares of Watsco by 115.5% in the fourth quarter. Choreo LLC now owns 2,293 shares of the construction company’s stock valued at $1,089,000 after acquiring an additional 1,229 shares during the period. Bleakley Financial Group LLC raised its stake in shares of Watsco by 8.5% in the fourth quarter. Bleakley Financial Group LLC now owns 674 shares of the construction company’s stock valued at $319,000 after acquiring an additional 53 shares during the period. Finally, Strategic Financial Concepts LLC purchased a new stake in shares of Watsco in the fourth quarter valued at $11,337,000. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Price Performance

WSO stock opened at $445.13 on Monday. The company has a market capitalization of $18.03 billion, a PE ratio of 33.59 and a beta of 1.06. Watsco, Inc. has a 12 month low of $430.20 and a 12 month high of $571.42. The firm’s 50-day moving average is $473.33 and its 200 day moving average is $490.32.

Watsco (NYSE:WSO) last issued its earnings results on Wednesday, April 23rd. The construction company reported $1.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.29 by ($0.36). Watsco had a return on equity of 17.59% and a net margin of 7.04%. The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.66 billion. During the same quarter in the previous year, the company earned $2.17 earnings per share. The firm’s revenue was down 2.2% on a year-over-year basis. Sell-side analysts forecast that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th were issued a dividend of $3.00 per share. This represents a $12.00 annualized dividend and a yield of 2.70%. This is a boost from Watsco’s previous quarterly dividend of $2.70. The ex-dividend date was Tuesday, April 15th. Watsco’s dividend payout ratio is presently 92.24%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on WSO shares. Morgan Stanley started coverage on shares of Watsco in a research note on Monday, April 14th. They issued an “equal weight” rating and a $515.00 target price on the stock. Mizuho set a $490.00 price target on shares of Watsco in a research note on Thursday, April 24th. Robert W. Baird reduced their price target on shares of Watsco from $560.00 to $540.00 and set an “outperform” rating on the stock in a research note on Thursday, April 24th. JPMorgan Chase & Co. raised their price target on shares of Watsco from $445.00 to $460.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 27th. Finally, UBS Group reduced their price target on shares of Watsco from $475.00 to $455.00 and set a “neutral” rating on the stock in a research note on Thursday, April 24th. Seven research analysts have rated the stock with a hold rating and one has issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $486.67.

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.