Watsco (NYSE:WSO) Hits New 52-Week Low Following Analyst Downgrade

Watsco, Inc. (NYSE:WSOGet Free Report)’s stock price hit a new 52-week low during mid-day trading on Wednesday after UBS Group lowered their price target on the stock from $455.00 to $450.00. UBS Group currently has a neutral rating on the stock. Watsco traded as low as $418.89 and last traded at $419.39, with a volume of 168172 shares traded. The stock had previously closed at $431.21.

Several other research firms have also weighed in on WSO. Mizuho set a $490.00 price objective on Watsco in a research note on Thursday, April 24th. JPMorgan Chase & Co. upped their price target on Watsco from $445.00 to $460.00 and gave the stock a “neutral” rating in a report on Tuesday, May 27th. Robert W. Baird lowered their price objective on shares of Watsco from $560.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday, April 24th. Morgan Stanley started coverage on shares of Watsco in a research report on Monday, April 14th. They set an “equal weight” rating and a $515.00 target price on the stock. Finally, Loop Capital upped their target price on shares of Watsco from $450.00 to $460.00 and gave the company a “hold” rating in a research note on Thursday, February 27th. Seven research analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $485.83.

View Our Latest Report on WSO

Hedge Funds Weigh In On Watsco

A number of hedge funds have recently added to or reduced their stakes in WSO. Manitou Investment Management Ltd. bought a new position in shares of Watsco in the 1st quarter worth about $25,000. Opal Wealth Advisors LLC acquired a new stake in Watsco during the first quarter worth about $25,000. WPG Advisers LLC bought a new position in Watsco in the first quarter worth about $25,000. TCTC Holdings LLC lifted 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 acquiring an additional 30 shares during the last quarter. Finally, City Holding Co. acquired a new position in Watsco in the first quarter valued at approximately $29,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Price Performance

The company has a market capitalization of $17.57 billion, a P/E ratio of 33.33 and a beta of 1.06. The company has a fifty day moving average price of $455.86 and a 200 day moving average price of $480.27.

Watsco (NYSE:WSOGet Free Report) last issued its earnings results on Wednesday, April 23rd. The construction company reported $1.93 earnings per share for the quarter, missing the consensus estimate of $2.29 by ($0.36). The company had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.66 billion. Watsco had a return on equity of 17.13% and a net margin of 6.98%. Watsco’s quarterly revenue was down 2.2% on a year-over-year basis. During the same period in the prior year, the business earned $2.17 earnings per share. On average, equities research analysts predict that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 30th. Shareholders of record on Tuesday, April 15th were paid a $3.00 dividend. The ex-dividend date of this dividend was Tuesday, April 15th. This represents a $12.00 annualized dividend and a dividend yield of 2.77%. This is a positive change from Watsco’s previous quarterly dividend of $2.70. Watsco’s dividend payout ratio (DPR) is presently 92.24%.

About Watsco

(Get Free Report)

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.

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