Fenimore Asset Management Inc Raises Stock Holdings in Watsco, Inc. $WSO

Fenimore Asset Management Inc increased its stake in Watsco, Inc. (NYSE:WSO) by 19.8% in the second quarter, Holdings Channel reports. The institutional investor owned 69,975 shares of the construction company’s stock after acquiring an additional 11,570 shares during the quarter. Fenimore Asset Management Inc’s holdings in Watsco were worth $30,902,000 as of its most recent SEC filing.

Other institutional investors have also recently added to or reduced their stakes in the company. Manitou Investment Management Ltd. bought a new position in shares of Watsco during the first quarter worth about $25,000. Opal Wealth Advisors LLC acquired a new stake in Watsco during the first quarter valued at approximately $25,000. WPG Advisers LLC acquired a new stake in Watsco during the first quarter valued at approximately $25,000. Ameritas Advisory Services LLC bought a new position in Watsco during the second quarter worth $26,000. Finally, TCTC Holdings LLC boosted its holdings in Watsco by 115.4% in the first quarter. TCTC Holdings LLC now owns 56 shares of the construction company’s stock worth $28,000 after purchasing an additional 30 shares during the period. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Price Performance

Shares of NYSE:WSO opened at $415.70 on Monday. The stock has a market cap of $16.86 billion, a price-to-earnings ratio of 31.88 and a beta of 0.94. Watsco, Inc. has a 12 month low of $378.35 and a 12 month high of $571.41. The stock’s 50 day moving average price is $410.44 and its 200 day moving average price is $448.50.

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

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Thursday, October 16th will be issued a dividend of $3.00 per share. This represents a $12.00 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date of this dividend is Thursday, October 16th. Watsco’s payout ratio is presently 92.02%.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on WSO shares. UBS Group dropped their price target on Watsco from $450.00 to $425.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 23rd. Weiss Ratings reissued a “hold (c+)” rating on shares of Watsco in a report on Saturday, September 27th. Finally, Morgan Stanley set a $505.00 price objective on shares of Watsco in a report on Wednesday, July 2nd. One investment analyst has rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $480.00.

About Watsco

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.