Morgan Stanley Reaffirms Underweight Rating for Watsco, Inc. (WSO)
Morgan Stanley reiterated their underweight rating on shares of Watsco, Inc. (NYSE:WSO) in a research report sent to investors on Wednesday. Morgan Stanley currently has a $141.00 price objective on the construction company’s stock, up from their previous price objective of $139.00.
Several other research analysts have also issued reports on WSO. BidaskClub upgraded Watsco from a buy rating to a strong-buy rating in a report on Saturday, July 8th. Wolfe Research assumed coverage on Watsco in a report on Tuesday, July 11th. They issued a market perform rating on the stock. Stifel Nicolaus reiterated a buy rating and issued a $176.00 price target (up previously from $163.00) on shares of Watsco in a report on Friday, June 23rd. Zacks Investment Research upgraded Watsco from a hold rating to a buy rating and set a $173.00 price target on the stock in a report on Tuesday, June 27th. Finally, Seaport Global Securities upgraded Watsco from a neutral rating to a buy rating and increased their price target for the stock from $145.00 to $160.00 in a report on Wednesday, April 26th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and four have issued a buy rating to the stock. Watsco presently has a consensus rating of Hold and an average target price of $164.00.
Shares of Watsco (NYSE:WSO) opened at 150.06 on Wednesday. The firm has a market cap of $4.91 billion, a price-to-earnings ratio of 27.75 and a beta of 0.84. The company has a 50-day moving average price of $151.78 and a 200-day moving average price of $146.97. Watsco has a 12 month low of $128.60 and a 12 month high of $159.55.
Watsco (NYSE:WSO) last announced its quarterly earnings results on Tuesday, July 25th. The construction company reported $2.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.02 by $0.05. The business had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.29 billion. Watsco had a return on equity of 14.52% and a net margin of 4.29%. The company’s quarterly revenue was up 5.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.82 earnings per share. Analysts forecast that Watsco will post $5.76 earnings per share for the current fiscal year.
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The business also recently disclosed a quarterly dividend, which will be paid on Monday, July 31st. Stockholders of record on Monday, July 17th will be paid a $1.25 dividend. The ex-dividend date of this dividend is Thursday, July 13th. This is an increase from Watsco’s previous quarterly dividend of $1.05. This represents a $5.00 annualized dividend and a dividend yield of 3.33%. Watsco’s dividend payout ratio is 93.11%.
Several hedge funds have recently modified their holdings of the company. Bank of Nova Scotia bought a new stake in shares of Watsco during the first quarter valued at approximately $450,000. Flinton Capital Management LLC increased its stake in shares of Watsco by 9.1% in the first quarter. Flinton Capital Management LLC now owns 768 shares of the construction company’s stock valued at $110,000 after buying an additional 64 shares during the period. Winslow Evans & Crocker Inc. increased its stake in shares of Watsco by 300.0% in the second quarter. Winslow Evans & Crocker Inc. now owns 800 shares of the construction company’s stock valued at $123,000 after buying an additional 600 shares during the period. Public Employees Retirement Association of Colorado increased its stake in shares of Watsco by 15.7% in the second quarter. Public Employees Retirement Association of Colorado now owns 952 shares of the construction company’s stock valued at $147,000 after buying an additional 129 shares during the period. Finally, Creative Planning increased its stake in shares of Watsco by 1.5% in the first quarter. Creative Planning now owns 979 shares of the construction company’s stock valued at $140,000 after buying an additional 14 shares during the period. 80.71% of the stock is owned by hedge funds and other institutional investors.
Watsco Company Profile
Watsco, Inc is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products.
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