Watsco (NYSE:WSO) Hits New 52-Week Low – Here’s Why

Watsco, Inc. (NYSE:WSO)’s share price hit a new 52-week low on Monday. The company traded as low as $289.76 and last traded at $287.4220, with a volume of 21944 shares changing hands. The stock had previously closed at $297.47.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on WSO. Stephens restated an “overweight” rating and set a $485.00 price objective on shares of Watsco in a report on Monday, August 17th. Robert W. Baird set a $400.00 target price on shares of Watsco in a research note on Thursday, July 30th. DA Davidson decreased their target price on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Morgan Stanley boosted their price target on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Finally, Zacks Research cut Watsco from a “hold” rating to a “strong sell” rating in a report on Tuesday, September 22nd. Two analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $395.50.

Watsco Price Performance

The stock has a market cap of $11.99 billion, a price-to-earnings ratio of 25.21 and a beta of 1.06. The stock’s 50 day simple moving average is $312.99 and its two-hundred day simple moving average is $364.72.

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

Watsco Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be given a $3.30 dividend. This represents a $13.20 annualized dividend and a yield of 4.5%. The ex-dividend date of this dividend is Friday, October 16th. Watsco’s dividend payout ratio is 114.48%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WSO. Markel Group Inc. grew its stake in shares of Watsco by 0.8% in the 1st quarter. Markel Group Inc. now owns 582,169 shares of the construction company’s stock valued at $211,787,000 after purchasing an additional 4,500 shares during the period. Captrust Financial Advisors lifted its position in shares of Watsco by 1.5% during the 4th quarter. Captrust Financial Advisors now owns 396,514 shares of the construction company’s stock worth $133,605,000 after buying an additional 6,034 shares during the period. Confluence Investment Management LLC acquired a new stake in Watsco in the 3rd quarter valued at $96,991,000. Bank of America Corp DE acquired a new stake in Watsco in the 2nd quarter valued at $119,291,000. Finally, Bank of New York Mellon Corp bought a new stake in Watsco in the second quarter valued at $97,937,000. Institutional investors own 89.71% of the company’s stock.

Watsco Company Profile

Watsco, Inc (NYSE: WSO) is a distributor of heating, air conditioning and refrigeration equipment and related products. The company supplies residential and commercial contractors with air conditioners, heat pumps, furnaces, refrigeration systems, indoor air-quality products, controls, replacement parts and other installation supplies.

Watsco serves the replacement and new-construction markets through a network of distribution centers, branches, showrooms and e-commerce platforms. Its customers primarily include HVAC and refrigeration contractors, dealers and other industry professionals, while its products are sourced from major manufacturers and distributed under leading industry brands.

Founded in 1956, Watsco has expanded through organic growth and acquisitions to become one of the largest HVAC and refrigeration distributors in North America.