Watsco (NYSE:WSO) Sets New 12-Month Low on Analyst Downgrade

Watsco, Inc. (NYSE:WSO)’s share price reached a new 52-week low on Thursday after Mizuho lowered their price target on the stock from $525.00 to $400.00. Mizuho currently has a neutral rating on the stock. Watsco traded as low as $350.00 and last traded at $360.02, with a volume of 747497 shares changing hands. The stock had previously closed at $366.36.

A number of other analysts have also commented on the company. UBS Group dropped their price target on Watsco from $450.00 to $425.00 and set a “neutral” rating for the company in a research note on Tuesday, September 23rd. Morgan Stanley decreased their price objective on shares of Watsco from $505.00 to $460.00 and set an “equal weight” rating for the company in a report on Wednesday, October 8th. William Blair reaffirmed a “market perform” rating on shares of Watsco in a research note on Wednesday. JPMorgan Chase & Co. reduced their price target on shares of Watsco from $425.00 to $400.00 and set a “neutral” rating on the stock in a research report on Wednesday. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Watsco in a research note on Wednesday, October 8th. One research analyst has rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, Watsco currently has a consensus rating of “Hold” and an average price target of $447.50.

Hedge Funds Weigh In On Watsco

Several institutional investors have recently made changes to their positions in the business. WPG Advisers LLC purchased a new stake in Watsco during the 1st quarter valued at approximately $25,000. TCTC Holdings LLC grew its holdings in Watsco by 115.4% during 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. Ameritas Advisory Services LLC purchased a new stake in Watsco during the 2nd quarter valued at approximately $26,000. Rossby Financial LCC purchased a new stake in Watsco during the 1st quarter valued at approximately $33,000. Finally, TD Waterhouse Canada Inc. grew its holdings 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 in the last quarter. Institutional investors own 89.71% of the company’s stock.

Watsco Stock Performance

The business’s fifty day simple moving average is $398.64 and its 200-day simple moving average is $440.31. The firm has a market capitalization of $15.06 billion, a PE ratio of 28.48 and a beta of 0.94.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, July 30th. The construction company reported $4.52 EPS for the quarter, missing the consensus estimate of $4.84 by ($0.32). The firm had revenue of $2.06 billion for the quarter, compared to analysts’ expectations of $2.24 billion. Watsco had a return on equity of 16.96% and a net margin of 7.08%.The firm’s quarterly revenue was down 3.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $4.49 earnings per share. Sell-side analysts expect that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Thursday, October 16th will be paid a $3.00 dividend. The ex-dividend date of this dividend is Thursday, October 16th. This represents a $12.00 dividend on an annualized basis and a yield of 3.2%. Watsco’s dividend payout ratio is 92.02%.

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.