Watsco, Inc. (NYSE:WSO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.

According to Zacks, “Watsco is anticipated to benefit in the third quarter 2017 from the Russell Sigler acquisition. E-commerce sales growth and growth potential in the replacement market will also drive near-term performance. Watsco’s supply chain optimization will improve fill-rates, increase inventory turns and reduce infrastructure costs over the long term. The company is likely to benefit from the expansion of its product offerings, as well as logistical and productivity improvements. Over the past year, Watsco has outperformed the industry. Its estimates have moved up lately. However, the company's performance will be hurt by foreign currency headwinds, volume issue in Canada and seasonal factors in the near term.”

Several other analysts have also weighed in on the stock. Stifel Nicolaus reaffirmed a “buy” rating and set a $154.00 price objective on shares of Watsco in a report on Thursday, September 7th. Morgan Stanley raised their price objective on shares of Watsco from $141.00 to $151.00 and gave the stock an “underweight” rating in a report on Monday, September 25th. BidaskClub lowered shares of Watsco from a “buy” rating to a “hold” rating in a report on Sunday, July 16th. Robert W. Baird reaffirmed a “buy” rating and set a $163.00 price objective on shares of Watsco in a report on Friday, September 1st. Finally, Wolfe Research started coverage on shares of Watsco in a report on Tuesday, July 11th. They set a “market perform” rating for the company. One analyst has rated the stock with a sell rating, four have given a hold rating and four have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $161.17.

Watsco (NYSE:WSO) opened at 163.32 on Thursday. Watsco has a 12 month low of $128.60 and a 12 month high of $163.95. The stock’s 50 day moving average price is $152.06 and its 200 day moving average price is $147.17. The firm has a market capitalization of $5.34 billion, a P/E ratio of 30.20 and a beta of 0.84.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Tuesday, July 25th. The construction company reported $2.07 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $2.02 by $0.05. The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.29 billion. Watsco had a net margin of 4.29% and a return on equity of 14.52%. The company’s revenue was up 5.1% on a year-over-year basis. During the same quarter last year, the business posted $1.82 earnings per share. On average, analysts forecast that Watsco will post $5.77 earnings per share for the current year.

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Several institutional investors have recently modified their holdings of the stock. Public Employees Retirement Association of Colorado increased its holdings in shares of Watsco by 0.4% in the third quarter. Public Employees Retirement Association of Colorado now owns 836 shares of the construction company’s stock valued at $118,000 after purchasing an additional 3 shares in the last quarter. Foundry Partners LLC increased its holdings in shares of Watsco by 0.6% in the third quarter. Foundry Partners LLC now owns 1,660 shares of the construction company’s stock valued at $234,000 after purchasing an additional 10 shares in the last quarter. Creative Planning increased its holdings 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 purchasing an additional 14 shares in the last quarter. Advisor Partners LLC increased its holdings in shares of Watsco by 0.9% in the first quarter. Advisor Partners LLC now owns 1,570 shares of the construction company’s stock valued at $225,000 after purchasing an additional 14 shares in the last quarter. Finally, Washington Trust Bank increased its holdings in shares of Watsco by 1.9% in the third quarter. Washington Trust Bank now owns 851 shares of the construction company’s stock valued at $120,000 after purchasing an additional 16 shares in the last quarter. 81.61% of the stock is owned by institutional investors and hedge funds.

About Watsco

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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