Watsco (NYSE:WSO) Upgraded by Zacks Research to Hold Rating

Zacks Research upgraded shares of Watsco (NYSE:WSO) from a strong sell rating to a hold rating in a research report sent to investors on Wednesday morning,Zacks.com reports.

WSO has been the topic of several other reports. Wolfe Research set a $349.00 target price on shares of Watsco in a research note on Tuesday, December 9th. JPMorgan Chase & Co. upped their target price on shares of Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a research report on Thursday, February 19th. Morgan Stanley dropped their price target on shares of Watsco from $460.00 to $370.00 and set an “equal weight” rating for the company in a research note on Wednesday, January 14th. Mizuho set a $425.00 price objective on shares of Watsco in a report on Wednesday, February 18th. Finally, UBS Group assumed coverage on Watsco in a report on Monday, January 5th. They set a “neutral” rating and a $370.00 price target on the stock. One equities research analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $409.00.

Watsco Price Performance

Watsco stock opened at $410.97 on Wednesday. The firm has a 50-day moving average of $383.35 and a two-hundred day moving average of $378.60. The stock has a market cap of $16.67 billion, a price-to-earnings ratio of 33.94 and a beta of 1.04. Watsco has a 1 year low of $323.05 and a 1 year high of $533.07.

Watsco (NYSE:WSO) last announced its earnings results on Tuesday, February 17th. The construction company reported $1.68 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.26). Watsco had a net margin of 6.87% and a return on equity of 15.49%. The firm had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.62 billion. During the same quarter last year, the business earned $2.37 earnings per share. Watsco’s revenue was down 9.9% on a year-over-year basis. Research analysts expect that Watsco will post 14.62 earnings per share for the current year.

Watsco Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Friday, January 16th were paid a $3.00 dividend. This represents a $12.00 annualized dividend and a yield of 2.9%. The ex-dividend date was Friday, January 16th. Watsco’s dividend payout ratio is presently 99.09%.

Hedge Funds Weigh In On Watsco

Several hedge funds and other institutional investors have recently modified their holdings of WSO. TD Waterhouse Canada Inc. boosted its position in Watsco by 242.9% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 72 shares of the construction company’s stock worth $33,000 after purchasing an additional 51 shares during the period. SJS Investment Consulting Inc. boosted its position in Watsco by 2,366.7% during the 3rd quarter. SJS Investment Consulting Inc. now owns 74 shares of the construction company’s stock valued at $30,000 after purchasing an additional 71 shares during the period. Torren Management LLC bought a new position in Watsco in the 4th quarter worth about $26,000. TruNorth Capital Management LLC acquired a new position in shares of Watsco during the third quarter valued at $37,000. Finally, Capital A Wealth Management LLC raised its holdings in Watsco by 4,700.0% during the second quarter. Capital A Wealth Management LLC now owns 96 shares of the construction company’s stock worth $41,000 after purchasing an additional 94 shares in the last quarter. 89.71% of the stock is owned by institutional investors and hedge funds.

About Watsco

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.