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

Watsco, Inc. (NYSE:WSO) hit a new 52-week low during mid-day trading on Wednesday after UBS Group lowered their price target on the stock from $455.00 to $450.00. UBS Group currently has a neutral rating on the stock. Watsco traded as low as $418.89 and last traded at $419.39, with a volume of 168172 shares changing hands. The stock had previously closed at $431.21.

A number of other research analysts also recently issued reports on WSO. Loop Capital boosted their price target on shares of Watsco from $450.00 to $460.00 and gave the stock a “hold” rating in a research report on Thursday, February 27th. Wall Street Zen upgraded shares of Watsco from a “sell” rating to a “hold” rating in a research report on Friday, May 9th. Morgan Stanley assumed coverage on shares of Watsco in a research report on Monday, April 14th. They issued an “equal weight” rating and a $515.00 price target on the stock. Mizuho set a $490.00 price target on shares of Watsco in a research report on Thursday, April 24th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Watsco from $445.00 to $460.00 and gave the stock a “neutral” rating in a research report on Tuesday, May 27th. Seven analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $485.83.

Institutional Trading of Watsco

Hedge funds have recently modified their holdings of the stock. Atria Wealth Solutions Inc. increased its stake in Watsco by 14.0% during the 4th quarter. Atria Wealth Solutions Inc. now owns 1,607 shares of the construction company’s stock valued at $762,000 after purchasing an additional 197 shares in the last quarter. Global Retirement Partners LLC increased its stake in Watsco by 71.0% during the 4th quarter. Global Retirement Partners LLC now owns 212 shares of the construction company’s stock valued at $100,000 after purchasing an additional 88 shares in the last quarter. First Horizon Advisors Inc. increased its stake in Watsco by 6.3% during the 4th quarter. First Horizon Advisors Inc. now owns 544 shares of the construction company’s stock valued at $258,000 after purchasing an additional 32 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new stake in Watsco during the 4th quarter valued at $1,381,000. Finally, Crestwood Advisors Group LLC increased its stake in Watsco by 18.5% during the 4th quarter. Crestwood Advisors Group LLC now owns 633 shares of the construction company’s stock valued at $300,000 after purchasing an additional 99 shares in the last quarter. Institutional investors own 89.71% of the company’s stock.

Watsco Stock Performance

The firm has a market cap of $17.16 billion, a P/E ratio of 32.56 and a beta of 1.06. The stock’s 50 day simple moving average is $457.34 and its 200 day simple moving average is $480.88.

Watsco (NYSE:WSO) last announced its quarterly earnings results on Wednesday, April 23rd. The construction company reported $1.93 EPS for the quarter, missing analysts’ consensus estimates of $2.29 by ($0.36). The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.66 billion. Watsco had a net margin of 6.98% and a return on equity of 17.13%. The business’s revenue for the quarter was down 2.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.17 EPS. As a group, analysts forecast that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th were issued a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a yield of 2.83%. This is an increase from Watsco’s previous quarterly dividend of $2.70. The ex-dividend date of this dividend was Tuesday, April 15th. Watsco’s payout ratio is currently 92.24%.

Watsco Company Profile

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.