Watsco (NYSE:WSO) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday. The brokerage presently has a $185.00 price objective on the construction company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 12.08% from the company’s current price.
According to Zacks, “Watsco’s top and bottom-line delivered year-over-year improvement but missed the Zacks Consensus Estimates. The company continues to transform its business into the digital age by investing in scalable platforms for mobile apps, e-commerce, business intelligence and supply-chain optimization. Its technology continues to evolve and make progress. Currently e-commerce sales generate 25% of its revenues. Further, its focus on strategic acquisitions, cost-cutting initiatives and growth potential in the replacement market are likely to drive growth. The company’s sound balance sheet positions it well to invest and capitalize on long-term growth opportunities.”
WSO has been the subject of several other research reports. KeyCorp reissued a “buy” rating on shares of Watsco in a research report on Friday, November 17th. Morgan Stanley raised their price objective on Watsco from $151.00 to $156.00 and gave the company an “underweight” rating in a research report on Thursday, October 26th. Susquehanna Bancshares set a $195.00 price objective on Watsco and gave the company a “buy” rating in a research report on Friday. Stephens set a $169.00 price objective on Watsco and gave the company a “hold” rating in a research report on Thursday. Finally, JPMorgan Chase & Co. reduced their price target on Watsco from $180.00 to $169.00 and set a “neutral” rating for the company in a report on Monday. One analyst has rated the stock with a sell rating, four have issued a hold rating and six have assigned a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $168.88.
Watsco (NYSE:WSO) last announced its quarterly earnings data on Thursday, February 8th. The construction company reported $0.90 EPS for the quarter, missing the consensus estimate of $1.00 by ($0.10). The firm had revenue of $964.35 million for the quarter, compared to analysts’ expectations of $965.85 million. Watsco had a net margin of 4.80% and a return on equity of 14.66%. The business’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same period in the prior year, the business posted $0.81 EPS. equities analysts expect that Watsco will post 6.82 EPS for the current year.
In other news, SVP Barry S. Logan sold 3,246 shares of the firm’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $164.30, for a total transaction of $533,317.80. Following the completion of the transaction, the senior vice president now directly owns 15,800 shares in the company, valued at $2,595,940. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 13.93% of the stock is owned by company insiders.
Several large investors have recently modified their holdings of WSO. AlphaStar Capital Management LLC bought a new stake in Watsco in the 4th quarter worth about $331,000. American International Group Inc. increased its holdings in Watsco by 1.7% in the 4th quarter. American International Group Inc. now owns 63,214 shares of the construction company’s stock worth $10,749,000 after buying an additional 1,060 shares in the last quarter. HAP Trading LLC bought a new stake in Watsco in the 4th quarter worth about $1,810,000. Royce & Associates LP bought a new stake in Watsco in the 4th quarter worth about $1,598,000. Finally, UBS Asset Management Americas Inc. increased its holdings in Watsco by 6.2% in the 4th quarter. UBS Asset Management Americas Inc. now owns 36,387 shares of the construction company’s stock worth $6,187,000 after buying an additional 2,134 shares in the last quarter. Hedge funds and other institutional investors own 82.36% of the company’s stock.
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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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