Watsco (NYSE:WSO) Reaches New 1-Year Low Following Analyst Downgrade

Watsco, Inc. (NYSE:WSO) hit a new 52-week low on Friday after UBS Group lowered their price target on the stock from $425.00 to $390.00. UBS Group currently has a neutral rating on the stock. Watsco traded as low as $344.52 and last traded at $350.51, with a volume of 6732 shares trading hands. The stock had previously closed at $351.13.

WSO has been the subject of a number of other research reports. Mizuho lowered their price objective on shares of Watsco from $525.00 to $400.00 and set a “neutral” rating for the company in a research report on Friday, October 17th. JPMorgan Chase & Co. decreased their target price on Watsco from $400.00 to $360.00 and set a “neutral” rating for the company in a research note on Thursday, October 30th. William Blair reaffirmed a “market perform” rating on shares of Watsco in a report on Wednesday, October 15th. Zacks Research downgraded Watsco from a “hold” rating to a “strong sell” rating in a report on Wednesday, October 29th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Watsco in a research report on Thursday, October 30th. One research analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $435.00.

Institutional Trading of Watsco

Several hedge funds have recently added to or reduced their stakes in WSO. WPG Advisers LLC acquired a new position in shares of Watsco during the first quarter valued at $25,000. Ameritas Advisory Services LLC acquired a new stake in Watsco in the second quarter worth about $26,000. TCTC Holdings LLC grew its position in Watsco by 115.4% in the 1st quarter. TCTC Holdings LLC now owns 56 shares of the construction company’s stock valued at $28,000 after buying an additional 30 shares in the last quarter. SJS Investment Consulting Inc. increased its stake 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 buying an additional 71 shares during the period. Finally, TD Waterhouse Canada Inc. increased its stake in Watsco by 242.9% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 72 shares of the construction company’s stock valued at $33,000 after buying an additional 51 shares during the period. Institutional investors own 89.71% of the company’s stock.

Watsco Trading Up 0.2%

The business’s 50-day simple moving average is $382.83 and its 200 day simple moving average is $425.98. The company has a market capitalization of $14.27 billion, a P/E ratio of 27.50 and a beta of 0.93.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Friday, November 7th. The construction company reported $3.98 earnings per share (EPS) for the quarter. Watsco had a net margin of 7.04% and a return on equity of 16.48%. The business had revenue of $2.07 billion during the quarter. As a group, sell-side analysts predict that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 31st. Stockholders of record on Thursday, October 16th were given a dividend of $3.00 per share. The ex-dividend date was Thursday, October 16th. This represents a $12.00 annualized dividend and a dividend yield of 3.4%. Watsco’s dividend payout ratio (DPR) is 93.75%.

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.