Watsco (NYSE:WSO) Sets New 1-Year Low – Here’s What Happened

Watsco, Inc. (NYSE:WSO)’s share price reached a new 52-week low on Monday . The stock traded as low as $426.89 and last traded at $429.21, with a volume of 82020 shares. The stock had previously closed at $431.99.

Analyst Upgrades and Downgrades

Several research firms have weighed in on WSO. Mizuho set a $490.00 target price on Watsco in a report on Thursday, April 24th. JPMorgan Chase & Co. raised their target price 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. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research note on Friday, May 9th. Robert W. Baird dropped their price objective on shares of Watsco from $560.00 to $540.00 and set an “outperform” rating for the company in a research note on Thursday, April 24th. Finally, Morgan Stanley began coverage on Watsco in a research report on Monday, April 14th. They set an “equal weight” rating and a $515.00 target price for the company. Seven investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, Watsco currently has a consensus rating of “Hold” and an average target price of $486.67.

Watsco Price Performance

The firm’s fifty day moving average price is $469.10 and its two-hundred day moving average price is $486.34. The stock has a market cap of $17.41 billion, a price-to-earnings ratio of 32.43 and a beta of 1.06.

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

Watsco Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Tuesday, April 15th were paid a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a dividend yield of 2.79%. The ex-dividend date was Tuesday, April 15th. This is an increase from Watsco’s previous quarterly dividend of $2.70. Watsco’s payout ratio is presently 92.24%.

Institutional Trading of Watsco

A number of institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its position in shares of Watsco by 1.5% during the 4th quarter. Vanguard Group Inc. now owns 3,618,109 shares of the construction company’s stock valued at $1,714,586,000 after acquiring an additional 52,127 shares during the period. Kayne Anderson Rudnick Investment Management LLC raised its stake in Watsco by 0.5% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 1,557,610 shares of the construction company’s stock valued at $791,734,000 after acquiring an additional 7,760 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in Watsco by 6.0% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,454,512 shares of the construction company’s stock valued at $739,088,000 after purchasing an additional 82,977 shares during the last quarter. Blair William & Co. IL boosted its position in Watsco by 5.7% during the first quarter. Blair William & Co. IL now owns 814,712 shares of the construction company’s stock worth $414,118,000 after purchasing an additional 43,776 shares during the period. Finally, Geode Capital Management LLC raised its position in shares of Watsco by 3.0% in the fourth quarter. Geode Capital Management LLC now owns 725,186 shares of the construction company’s stock valued at $343,168,000 after purchasing an additional 20,856 shares during the period. 89.71% of the stock is owned by hedge funds and other institutional investors.

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.