Carderock Capital Management Inc. Boosts Holdings in Watsco, Inc. $WSO

Carderock Capital Management Inc. increased its position in Watsco, Inc. (NYSE:WSO) by 215.6% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 11,519 shares of the construction company’s stock after purchasing an additional 7,869 shares during the period. Carderock Capital Management Inc.’s holdings in Watsco were worth $4,800,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Torren Management LLC bought a new position in shares of Watsco in the fourth quarter worth approximately $26,000. Bayban bought a new stake in shares of Watsco during the fourth quarter valued at approximately $29,000. Bamco Inc. NY bought a new stake in shares of Watsco during the fourth quarter valued at approximately $35,000. Laurel Wealth Advisors LLC purchased a new position in Watsco in the 4th quarter worth approximately $37,000. Finally, Quarry LP purchased a new position in Watsco in the 4th quarter worth approximately $37,000. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Trading Up 5.1%

Shares of WSO opened at $334.27 on Wednesday. The firm has a fifty day simple moving average of $377.41 and a two-hundred day simple moving average of $391.80. The firm has a market cap of $13.59 billion, a PE ratio of 28.99 and a beta of 1.05. Watsco, Inc. has a 1-year low of $300.66 and a 1-year high of $459.00.

Watsco (NYSE:WSO) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). The firm had revenue of $2.10 billion during the quarter, compared to analysts’ expectations of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.The business’s quarterly revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the business earned $4.52 earnings per share. As a group, research analysts forecast that Watsco, Inc. will post 12.55 EPS for the current fiscal year.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Thursday, July 16th were given a $3.30 dividend. This represents a $13.20 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend was Thursday, July 16th. Watsco’s dividend payout ratio (DPR) is presently 114.48%.

Analyst Ratings Changes

A number of analysts have commented on the company. DA Davidson reduced their target price on Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Wall Street Zen raised Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research report on Friday, June 26th. Stephens lifted their price objective on Watsco from $475.00 to $485.00 and gave the stock an “overweight” rating in a report on Wednesday, April 29th. Finally, Morgan Stanley boosted their target price on Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a research report on Friday, July 10th. Two research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $395.50.

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.