Watsco, Inc. (NYSE: WSO) Receives Average “Conservation” Rating from Brokerages
Shares of Watsco, Inc. (NYSE: WSO) have received an average recommendation of “Hold” by the nine rating companies that currently cover the company, reports MarketBeat Ratings. One research analyst rated the stock with a sell rating, six assigned a conservation rating, one assigned a buy rating, and one assigned a high buy rating to the company. The one-year average price target among brokerage firms that hedged the security in the past year is $ 259.60.
WSO has been the subject of several recent research reports. Wolfe Research downgraded Watsco’s stock from a “peer performance” rating to an “underperformance” rating and reduced its target price for the stock from $ 309.00 to $ 304.00 in a research note Monday, July 12. Morgan Stanley raised its price target on Watsco shares from $ 244.00 to $ 266.00 and gave the company an “equal weight” rating in a research note on Monday April 26.
Shares of WSO opened at $ 283.48 on Wednesday. The company has a market cap of $ 10.97 billion, a price-to-earnings ratio of 37.55, and a beta of 0.78. The company has a current ratio of 2.69, a quick ratio of 1.12 and a debt ratio of 0.03. Watsco has a 52 week low of $ 193.96 and a 52 week high of $ 307.81. The stock has a 50-day moving average of $ 286.76.
Watsco (NYSE: WSO) last reported its quarterly results on Thursday, April 22. The construction company reported EPS of $ 1.39 for the quarter, beating the consensus estimate of $ 0.91 by $ 0.48. The company posted revenue of $ 1.14 billion for the quarter, compared to analysts’ estimates of $ 1.07 billion. Watsco had a net margin of 5.52% and a return on equity of 16.08%. The company’s revenue for the quarter increased 12.7% year-over-year. In the same quarter of the previous year, the company posted earnings per share of $ 0.72. As a group, analysts expect Watsco to post earnings per share of 8.89 for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, July 30. Shareholders of record on Thursday, July 15 will receive a dividend of $ 1.95 per share. The ex-dividend date is Wednesday July 14. This represents an annualized dividend of $ 7.80 and a return of 2.75%. Watsco’s payout ratio is currently 111.27%.
In other Watsco news, Executive Vice President Barry S. Logan sold 5,500 Watsco shares in a trade that took place on Wednesday, April 28. The shares were sold at an average price of $ 294.14, for a total trade of $ 1,617,770.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders hold 13.31% of the company’s shares.
Several institutional investors and hedge funds have recently changed their positions in the company. BlackRock Inc. increased its holdings of Watsco shares by 6.9% in the 1st quarter. BlackRock Inc. now owns 3,689,071 shares of the construction company valued at $ 961,924,000 after acquiring an additional 236,583 shares during the last quarter. Baillie Gifford & Co. increased its stake in Watsco shares by 14.6% in the 1st quarter. Baillie Gifford & Co. now owns 1,994,573 shares of the construction company valued at $ 520,084,000 after acquiring an additional 254,261 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC increased its stake in Watsco shares by 3.8% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 773,193 shares of the construction company valued at $ 201,612,000 after acquiring an additional 28,167 shares in the last quarter. Blair William & Co. IL increased its stake in Watsco shares by 0.8% in the 1st quarter. Blair William & Co. IL now owns 564,359 shares of the construction company valued at $ 147,157,000 after acquiring an additional 4,333 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in Watsco shares by 10.8% in the first quarter. Geode Capital Management LLC now owns 470,180 shares of the construction company worth $ 122,602,000 after acquiring an additional 46,021 shares in the last quarter. Hedge funds and other institutional investors hold 78.49% of the company’s shares.
Watsco Company Profile
Watsco, Inc., along with its subsidiaries, distributes air conditioning, heating and refrigeration equipment; and related parts and supplies in the United States, Canada, Mexico and Puerto Rico. It offers residential air conditioners with and without ducts, including gas, electric and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.
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