Watsco (NYSE:WSO) Cut to “Sell” at StockNews.com

StockNews.com cut shares of Watsco (NYSE:WSO) from a hold rating to a sell rating in a research note released on Friday.

Other research analysts have also recently issued reports about the stock. UBS Group cut their price target on shares of Watsco from $475.00 to $455.00 and set a “neutral” rating for the company in a report on Thursday. Loop Capital increased their target price on Watsco from $450.00 to $460.00 and gave the stock a “hold” rating in a research note on Thursday, February 27th. Mizuho set a $490.00 price target on Watsco in a research note on Thursday. Robert W. Baird dropped their price objective on Watsco from $560.00 to $540.00 and set an “outperform” rating on the stock in a report on Thursday. Finally, Morgan Stanley initiated coverage on Watsco in a report on Monday, April 14th. They issued an “equal weight” rating and a $515.00 target price for the company. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and one has given a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $480.83.

Watsco Trading Up 0.5 %

Shares of WSO opened at $455.46 on Friday. The company’s 50 day simple moving average is $498.87 and its 200-day simple moving average is $498.82. The firm has a market cap of $18.40 billion, a PE ratio of 34.37 and a beta of 1.00. Watsco has a 12-month low of $439.08 and a 12-month high of $571.42.

Watsco (NYSE:WSO) last announced 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). Watsco had a net margin of 7.04% and a return on equity of 17.59%. The company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.66 billion. During the same quarter last year, the business posted $2.17 earnings per share. As a group, equities research analysts forecast that Watsco will post 14.62 EPS for the current fiscal year.

Watsco Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 30th. Investors of record on Tuesday, April 15th will be given a $3.00 dividend. The ex-dividend date is Tuesday, April 15th. This is a positive change from Watsco’s previous quarterly dividend of $2.70. This represents a $12.00 annualized dividend and a dividend yield of 2.63%. Watsco’s payout ratio is currently 92.24%.

Hedge Funds Weigh In On Watsco

Several hedge funds have recently added to or reduced their stakes in the business. Koshinski Asset Management Inc. grew its position in shares of Watsco by 7.8% in the first quarter. Koshinski Asset Management Inc. now owns 456 shares of the construction company’s stock valued at $232,000 after purchasing an additional 33 shares during the last quarter. Confluence Wealth Services Inc. boosted its stake in shares of Watsco by 4.7% during the 1st quarter. Confluence Wealth Services Inc. now owns 2,873 shares of the construction company’s stock worth $1,460,000 after purchasing an additional 128 shares during the last quarter. Highland Capital Management LLC purchased a new stake in Watsco in the 1st quarter worth approximately $282,000. Elevated Capital Advisors LLC grew its position in shares of Watsco by 5.3% in the first quarter. Elevated Capital Advisors LLC now owns 1,918 shares of the construction company’s stock valued at $975,000 after purchasing an additional 97 shares during the period. Finally, Schwartz Investment Counsel Inc. grew its holdings in Watsco by 8.2% in the 1st quarter. Schwartz Investment Counsel Inc. now owns 66,000 shares of the construction company’s stock valued at $33,548,000 after buying an additional 5,000 shares during the period. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

About Watsco

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.