Watsco (NYSE:WSO) Sets New 1-Year Low Following Analyst Downgrade

Watsco, Inc. (NYSE:WSO)’s stock price hit a new 52-week low during mid-day trading on Friday after UBS Group lowered their price target on the stock from $425.00 to $390.00. UBS Group currently has a neutral rating on the stock. Watsco traded as low as $344.52 and last traded at $350.51, with a volume of 6732 shares changing hands. The stock had previously closed at $351.13.

Several other analysts have also recently issued reports on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a report on Thursday, October 30th. Zacks Research cut shares of Watsco from a “hold” rating to a “strong sell” rating in a research report on Wednesday, October 29th. Morgan Stanley lowered 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, October 8th. JPMorgan Chase & Co. reduced their target price on Watsco from $400.00 to $360.00 and set a “neutral” rating on the stock in a report on Thursday, October 30th. Finally, Mizuho lowered their price target on Watsco from $525.00 to $400.00 and set a “neutral” rating for the company in a report on Friday, October 17th. One research analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $435.00.

Institutional Investors Weigh In On Watsco

A number of hedge funds have recently made changes to their positions in WSO. Trust Co. of Vermont increased its position in Watsco by 10.2% in the 2nd quarter. Trust Co. of Vermont now owns 238 shares of the construction company’s stock valued at $105,000 after acquiring an additional 22 shares during the period. Cary Street Partners Financial LLC raised its stake in shares of Watsco by 2.2% during the first quarter. Cary Street Partners Financial LLC now owns 1,073 shares of the construction company’s stock valued at $545,000 after purchasing an additional 23 shares in the last quarter. Freedom Investment Management Inc. grew its position in Watsco by 4.8% in the 1st quarter. Freedom Investment Management Inc. now owns 504 shares of the construction company’s stock valued at $256,000 after buying an additional 23 shares in the last quarter. Valeo Financial Advisors LLC lifted its stake in shares of Watsco by 2.3% in the 1st quarter. Valeo Financial Advisors LLC now owns 1,056 shares of the construction company’s stock worth $537,000 after acquiring an additional 24 shares during the period. Finally, Nicolet Advisory Services LLC boosted its holdings in shares of Watsco by 1.5% in the first quarter. Nicolet Advisory Services LLC now owns 1,705 shares of the construction company’s stock valued at $851,000 after acquiring an additional 25 shares in the last quarter. Institutional investors own 89.71% of the company’s stock.

Watsco Stock Up 0.3%

The firm has a market cap of $14.28 billion, a price-to-earnings ratio of 27.51 and a beta of 0.93. The stock’s 50 day moving average is $383.83 and its 200 day moving average is $426.98.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Wednesday, October 29th. The construction company reported $3.98 earnings per share for the quarter, missing the consensus estimate of $4.60 by ($0.62). Watsco had a net margin of 7.04% and a return on equity of 16.48%. The firm had revenue of $2.07 billion during the quarter, compared to analyst estimates of $2.18 billion. During the same quarter last year, the company earned $4.22 EPS. The company’s quarterly revenue was down 4.3% compared to the same quarter last year. Analysts anticipate that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 31st. Shareholders of record on Thursday, October 16th were issued a $3.00 dividend. The ex-dividend date of this dividend was Thursday, October 16th. This represents a $12.00 annualized dividend and a dividend yield of 3.4%. Watsco’s dividend payout ratio is currently 93.75%.

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.