Watsco (NYSE:WSO) Shares Cross Above Fifty Day Moving Average – Here’s Why

Watsco, Inc. (NYSE:WSO)’s stock price passed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $305.91 and traded as high as $317.33. Watsco shares last traded at $317.2140, with a volume of 787,912 shares traded.

Analyst Upgrades and Downgrades

WSO has been the subject of a number of analyst reports. Mizuho reduced their price target on Watsco from $350.00 to $325.00 and set a “neutral” rating for the company in a report on Thursday, October 15th. Robert W. Baird set a $400.00 price objective on Watsco in a report on Thursday, July 30th. Stephens reaffirmed an “overweight” rating and issued a $485.00 target price on shares of Watsco in a research report on Monday, August 17th. DA Davidson reduced their target price on Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Finally, Morgan Stanley decreased their price target on shares of Watsco from $370.00 to $330.00 and set an “equal weight” rating for the company in a research report on Monday, October 12th. Two investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $373.62.

Watsco Price Performance

The firm’s 50-day moving average price is $305.91 and its 200 day moving average price is $365.42. The firm has a market cap of $13.09 billion, a P/E ratio of 28.02 and a beta of 1.06.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Tuesday, October 27th. The construction company reported $3.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.10 by ($0.33). Watsco had a return on equity of 13.97% and a net margin of 6.31%. The firm had revenue of $2.22 billion for the quarter, compared to the consensus estimate of $2.21 billion. During the same quarter last year, the business earned $3.98 earnings per share. The business’s revenue for the quarter was up 7.4% compared to the same quarter last year. Analysts forecast that Watsco, Inc. will post 11.72 earnings per share for the current year.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Friday, October 16th were paid a $3.30 dividend. The ex-dividend date was Friday, October 16th. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. Watsco’s dividend payout ratio (DPR) is presently 116.61%.

Institutional Investors Weigh In On Watsco

A number of hedge funds and other institutional investors have recently modified their holdings of WSO. Laurel Wealth Advisors LLC bought a new stake in shares of Watsco during the 3rd quarter worth about $34,000. Heritage Family Offices LLP bought a new position in shares of Watsco in the third quarter valued at approximately $39,000. Western Wealth Management LLC bought a new position in shares of Watsco in the first quarter valued at approximately $41,000. Legacies Wealth LLC bought a new position in shares of Watsco in the third quarter valued at approximately $47,000. Finally, Versant Capital Management Inc boosted its holdings in shares of Watsco by 293.3% in the second quarter. Versant Capital Management Inc now owns 118 shares of the construction company’s stock valued at $49,000 after acquiring an additional 88 shares in the last quarter. 89.71% of the stock is currently owned by institutional investors.

Watsco Company Profile

Watsco, Inc (NYSE: WSO) is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.