Watsco (NYSE:WSO) Rating Increased to Hold at Wall Street Zen

Wall Street Zen upgraded shares of Watsco (NYSE:WSO) from a sell rating to a hold rating in a report issued on Saturday.

A number of other analysts also recently issued reports on WSO. Morgan Stanley lowered their price target on shares of Watsco from $460.00 to $370.00 and set an “equal weight” rating on the stock in a report on Wednesday, January 14th. UBS Group started coverage on shares of Watsco in a report on Monday, January 5th. They set a “neutral” rating and a $370.00 price target on the stock. Mizuho set a $425.00 price target on shares of Watsco in a report on Wednesday, February 18th. JPMorgan Chase & Co. increased their price target on shares of Watsco from $370.00 to $400.00 and gave the stock a “neutral” rating in a report on Thursday, February 19th. Finally, Stephens increased their price target on shares of Watsco from $475.00 to $485.00 and gave the stock an “overweight” rating in a report on Wednesday. One research analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, Watsco currently has a consensus rating of “Hold” and an average price target of $399.83.

Watsco Stock Performance

Shares of NYSE WSO opened at $429.56 on Friday. The company’s fifty day moving average price is $398.25 and its 200 day moving average price is $377.02. Watsco has a 1 year low of $323.05 and a 1 year high of $496.25. The company has a market capitalization of $17.44 billion, a PE ratio of 35.65 and a beta of 1.12.

Watsco (NYSE:WSO) last announced its quarterly earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.73 by $0.14. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the prior year, the firm posted $1.93 earnings per share. The firm’s quarterly revenue was up .1% compared to the same quarter last year. On average, equities analysts expect that Watsco will post 12.62 EPS for the current year.

Watsco Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th were given a dividend of $3.30 per share. This is a boost from Watsco’s previous quarterly dividend of $3.00. This represents a $13.20 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date was Thursday, April 16th. Watsco’s dividend payout ratio (DPR) is currently 109.54%.

Hedge Funds Weigh In On Watsco

Large investors have recently added to or reduced their stakes in the stock. SJS Investment Consulting Inc. raised its position in Watsco by 2,366.7% during the third quarter. SJS Investment Consulting Inc. now owns 74 shares of the construction company’s stock worth $30,000 after acquiring an additional 71 shares during the period. Torren Management LLC acquired a new position in Watsco during the fourth quarter worth $26,000. Bayban acquired a new position in Watsco during the fourth quarter worth $29,000. TruNorth Capital Management LLC acquired a new position in Watsco during the third quarter worth $37,000. Finally, Bamco Inc. NY acquired a new position in Watsco during the fourth quarter worth $35,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.