Fenimore Asset Management Inc Cuts Stock Position in Watsco, Inc. $WSO

Fenimore Asset Management Inc lessened its holdings in Watsco, Inc. (NYSE:WSO) by 13.9% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 60,859 shares of the construction company’s stock after selling 9,842 shares during the period. Fenimore Asset Management Inc’s holdings in Watsco were worth $20,506,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the business. Capital International Investors raised its stake in shares of Watsco by 741.4% in the 3rd quarter. Capital International Investors now owns 2,285,895 shares of the construction company’s stock valued at $924,187,000 after acquiring an additional 2,014,233 shares during the period. State Street Corp increased its stake in Watsco by 1.4% during the 3rd quarter. State Street Corp now owns 1,238,121 shares of the construction company’s stock worth $500,572,000 after buying an additional 16,595 shares during the period. M&T Bank Corp increased its stake in Watsco by 60,779.4% during the 4th quarter. M&T Bank Corp now owns 599,662 shares of the construction company’s stock worth $202,056,000 after buying an additional 598,677 shares during the period. DAVENPORT & Co LLC increased its stake in Watsco by 31.8% during the 4th quarter. DAVENPORT & Co LLC now owns 470,177 shares of the construction company’s stock worth $159,293,000 after buying an additional 113,333 shares during the period. Finally, Hamlin Capital Management LLC increased its stake in Watsco by 13.3% during the 3rd quarter. Hamlin Capital Management LLC now owns 405,480 shares of the construction company’s stock worth $163,936,000 after buying an additional 47,643 shares during the period. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Stock Performance

WSO opened at $429.56 on Friday. The company has a 50-day moving average of $398.25 and a 200-day moving average of $377.02. The company has a market capitalization of $17.44 billion, a P/E ratio of 35.65 and a beta of 1.12. Watsco, Inc. has a 1-year low of $323.05 and a 1-year high of $496.25.

Watsco (NYSE:WSO) last released its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.73 by $0.14. The company had revenue of $1.53 billion during the quarter, compared to the consensus estimate of $1.49 billion. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The company’s revenue was up .1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.93 EPS. As a group, sell-side analysts expect that Watsco, Inc. will post 12.62 earnings per share for the current fiscal year.

Watsco Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Thursday, April 16th were given a $3.30 dividend. This represents a $13.20 annualized dividend and a dividend yield of 3.1%. The ex-dividend date of this dividend was Thursday, April 16th. This is an increase from Watsco’s previous quarterly dividend of $3.00. Watsco’s payout ratio is presently 109.54%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the stock. UBS Group assumed coverage on shares of Watsco in a research note on Monday, January 5th. They set a “neutral” rating and a $370.00 price target on the stock. Zacks Research raised shares of Watsco from a “strong sell” rating to a “hold” rating in a research note on Wednesday, February 25th. Stephens lifted their price target on shares of Watsco from $475.00 to $485.00 and gave the stock an “overweight” rating in a research note on Wednesday. JPMorgan Chase & Co. lifted their price target on shares of Watsco from $370.00 to $400.00 and gave the stock a “neutral” rating in a research note on Thursday, February 19th. Finally, Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a research note on Saturday. One equities research analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $399.83.

Watsco 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.