Dearborn Partners LLC Invests $34.73 Million in Watsco, Inc. $WSO

Dearborn Partners LLC acquired a new position in shares of Watsco, Inc. (NYSE:WSO) in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund acquired 83,346 shares of the construction company’s stock, valued at approximately $34,733,000. Watsco makes up 1.6% of Dearborn Partners LLC’s portfolio, making the stock its 10th biggest position.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Empowered Funds LLC boosted its stake in Watsco by 4.1% in the first quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock valued at $3,013,000 after acquiring an additional 232 shares in the last quarter. Bank of Nova Scotia increased its position in shares of Watsco by 95.0% during the second quarter. Bank of Nova Scotia now owns 1,297 shares of the construction company’s stock worth $573,000 after purchasing an additional 632 shares in the last quarter. Sei Investments Co. increased its position in shares of Watsco by 7.6% during the second quarter. Sei Investments Co. now owns 50,442 shares of the construction company’s stock worth $22,275,000 after purchasing an additional 3,570 shares in the last quarter. Treasurer of the State of North Carolina lifted its holdings in shares of Watsco by 2.8% during the 2nd quarter. Treasurer of the State of North Carolina now owns 16,258 shares of the construction company’s stock valued at $7,180,000 after purchasing an additional 437 shares during the last quarter. Finally, Diversify Advisory Services LLC lifted its holdings in shares of Watsco by 12.0% during the 2nd quarter. Diversify Advisory Services LLC now owns 523 shares of the construction company’s stock valued at $221,000 after purchasing an additional 56 shares during the last quarter. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Stock Performance

Shares of WSO opened at $313.60 on Friday. The stock has a 50-day moving average of $356.85 and a two-hundred day moving average of $383.01. The stock has a market cap of $12.94 billion, a P/E ratio of 27.20 and a beta of 1.05. Watsco, Inc. has a one year low of $295.75 and a one year high of $459.00.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). Watsco had a net margin of 6.53% and a return on equity of 14.40%. The firm had revenue of $2.10 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same period in the prior year, the company posted $4.52 earnings per share. The firm’s revenue for the quarter was up 2.1% on a year-over-year basis. Analysts predict that Watsco, Inc. will post 12.21 EPS for the current fiscal year.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were given a $3.30 dividend. The ex-dividend date was Thursday, July 16th. This represents a $13.20 dividend on an annualized basis and a yield of 4.2%. Watsco’s dividend payout ratio is currently 114.48%.

Analysts Set New Price Targets

A number of analysts have recently weighed in on WSO shares. Robert W. Baird set a $400.00 price objective on Watsco in a research report on Thursday, July 30th. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Morgan Stanley raised their price target on Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a report on Friday, July 10th. DA Davidson dropped their price target on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Watsco in a report on Friday, June 26th. Two analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $395.50.

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.