Watsco, Inc. (NYSE:WSO) Given Consensus Recommendation of “Hold” by Brokerages

Shares of Watsco, Inc. (NYSE:WSO) have been assigned an average rating of “Hold” from the ten research firms that are covering the stock, Marketbeat.com reports. Nine research analysts have rated the stock with a hold rating and one has issued a buy rating on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $402.7143.

WSO has been the topic of several analyst reports. Wall Street Zen upgraded shares of Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Stephens raised their price objective on shares of Watsco from $475.00 to $485.00 and gave the stock an “overweight” rating in a research note on Wednesday, April 29th. Morgan Stanley boosted their target price on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research report on Friday. DA Davidson began coverage on Watsco in a research note on Tuesday, June 16th. They set a “neutral” rating and a $385.00 target price on the stock. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th.

Watsco Stock Performance

WSO stock traded up $6.53 during mid-day trading on Friday, reaching $384.26. 268,315 shares of the stock traded hands, compared to its average volume of 317,500. Watsco has a one year low of $323.05 and a one year high of $494.94. The stock has a market capitalization of $15.62 billion, a PE ratio of 31.89 and a beta of 1.02. The business has a 50-day moving average price of $393.55 and a two-hundred day moving average price of $391.03.

Watsco (NYSE:WSO) last released its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.73 by $0.14. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same quarter last year, the business earned $1.93 EPS. The business’s revenue was up .1% on a year-over-year basis. On average, equities analysts expect that Watsco will post 12.66 earnings per share for the current fiscal year.

Watsco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Thursday, July 16th will be paid a $3.30 dividend. The ex-dividend date is Thursday, July 16th. This represents a $13.20 dividend on an annualized basis and a yield of 3.4%. Watsco’s dividend payout ratio (DPR) is presently 109.54%.

Institutional Trading of Watsco

Several institutional investors and hedge funds have recently made changes to their positions in WSO. Empowered Funds LLC increased its stake in Watsco by 4.1% in the 1st quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock worth $3,013,000 after buying an additional 232 shares during the period. Bank of Nova Scotia grew its stake in Watsco by 95.0% in the 2nd quarter. Bank of Nova Scotia now owns 1,297 shares of the construction company’s stock worth $573,000 after acquiring an additional 632 shares in the last quarter. Sei Investments Co. grew its stake in Watsco by 7.6% in the 2nd quarter. Sei Investments Co. now owns 50,442 shares of the construction company’s stock worth $22,275,000 after acquiring an additional 3,570 shares in the last quarter. Treasurer of the State of North Carolina increased its position in shares of Watsco by 2.8% during the second quarter. Treasurer of the State of North Carolina now owns 16,258 shares of the construction company’s stock worth $7,180,000 after acquiring an additional 437 shares during the period. Finally, Diversify Advisory Services LLC increased its position in shares of Watsco by 12.0% during the second quarter. Diversify Advisory Services LLC now owns 523 shares of the construction company’s stock worth $221,000 after acquiring an additional 56 shares during the period. 89.71% of the stock is currently owned by institutional investors.

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.