Watsco (NYSE:WSO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Tuesday.

According to Zacks, “Watsco continues to transform its business into the digital age by investing in scalable platforms for mobile apps, e-commerce, business intelligence and supply-chain optimization. Its technology continues to evolve and make progress. Currently e-commerce sales generate 25% of its revenues. Further, its focus on strategic acquisitions, cost-cutting initiatives and growth potential in the replacement market are likely to drive growth. The company’s sound balance sheet positions it well to invest and capitalize on long-term growth opportunities. The company has also outperformed the industry over the past year.”

WSO has been the topic of several other reports. JPMorgan Chase & Co. reduced their target price on Watsco from $180.00 to $169.00 and set a “neutral” rating on the stock in a research report on Monday, February 12th. Stephens set a $169.00 target price on Watsco and gave the stock a “hold” rating in a research report on Thursday, February 8th. Finally, Susquehanna Bancshares set a $195.00 target price on Watsco and gave the stock a “buy” rating in a research report on Friday, February 9th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $168.88.

Shares of Watsco (NYSE:WSO) traded up $0.55 during trading hours on Tuesday, hitting $178.33. The stock had a trading volume of 60,746 shares, compared to its average volume of 249,409. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.21 and a quick ratio of 1.38. Watsco has a twelve month low of $134.08 and a twelve month high of $183.84. The stock has a market capitalization of $6,724.41, a P/E ratio of 30.83 and a beta of 0.93.

Watsco (NYSE:WSO) last issued its quarterly earnings data on Thursday, February 8th. The construction company reported $0.90 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.00 by ($0.10). Watsco had a net margin of 4.80% and a return on equity of 14.66%. The company had revenue of $964.35 million during the quarter, compared to analysts’ expectations of $965.85 million. During the same quarter in the prior year, the company earned $0.81 earnings per share. The firm’s revenue was up 5.6% compared to the same quarter last year. sell-side analysts forecast that Watsco will post 6.81 EPS for the current year.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cambridge Investment Research Advisors Inc. lifted its position in Watsco by 28.3% during the fourth quarter. Cambridge Investment Research Advisors Inc. now owns 3,222 shares of the construction company’s stock worth $548,000 after buying an additional 710 shares during the period. Xact Kapitalforvaltning AB purchased a new position in shares of Watsco in the 4th quarter worth about $435,000. Envestnet Asset Management Inc. raised its holdings in shares of Watsco by 80.8% in the 4th quarter. Envestnet Asset Management Inc. now owns 5,336 shares of the construction company’s stock worth $907,000 after purchasing an additional 2,385 shares during the period. DF Dent & Co. Inc. raised its holdings in shares of Watsco by 12.6% in the 4th quarter. DF Dent & Co. Inc. now owns 484,258 shares of the construction company’s stock worth $82,343,000 after purchasing an additional 54,133 shares during the period. Finally, MetLife Investment Advisors LLC purchased a new position in shares of Watsco in the 4th quarter worth about $3,283,000. Hedge funds and other institutional investors own 81.54% of the company’s stock.

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Watsco Company Profile

Watsco, Inc is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products.

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