Watsco, Inc. (NYSE:WSO) Stock Has Consensus Price Target of $395.50 According to Brokerages

Watsco, Inc. (NYSE:WSO) has been given an average rating of “Hold” by the eleven ratings firms that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $395.50.

A number of analysts have weighed in on the stock. Morgan Stanley increased their target price on shares of Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Zacks Research downgraded shares of Watsco from a “hold” rating to a “strong sell” rating in a research report on Tuesday, September 22nd. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research note on Tuesday, September 22nd. Robert W. Baird set a $400.00 price objective on shares of Watsco in a research report on Thursday, July 30th. Finally, Stephens reissued an “overweight” rating and set a $485.00 target price on shares of Watsco in a research note on Monday, August 17th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in WSO. Confluence Investment Management LLC acquired a new stake in Watsco during the third quarter worth approximately $96,991,000. QRG Capital Management Inc. lifted its stake in Watsco by 8.8% in the second quarter. QRG Capital Management Inc. now owns 1,188 shares of the construction company’s stock valued at $495,000 after buying an additional 96 shares during the period. Van Hulzen Asset Management LLC acquired a new position in Watsco in the second quarter valued at approximately $250,000. Integrated Wealth Concepts LLC boosted its holdings in shares of Watsco by 10.8% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 1,676 shares of the construction company’s stock worth $698,000 after buying an additional 163 shares in the last quarter. Finally, RFG Advisory LLC grew its position in shares of Watsco by 3.9% during the 2nd quarter. RFG Advisory LLC now owns 6,006 shares of the construction company’s stock worth $2,503,000 after buying an additional 228 shares during the period. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Stock Performance

Shares of WSO opened at $301.36 on Friday. Watsco has a 52-week low of $295.75 and a 52-week high of $459.00. The firm has a market cap of $12.43 billion, a price-to-earnings ratio of 26.14 and a beta of 1.06. The business’s fifty day moving average is $317.27 and its 200-day moving average is $366.51.

Watsco (NYSE:WSO) last released 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 company had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.Watsco’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $4.52 earnings per share. As a group, research analysts forecast that Watsco will post 12.21 EPS for the current fiscal year.

Watsco Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 16th will be issued a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date is Friday, October 16th. Watsco’s dividend payout ratio (DPR) is presently 114.48%.

About Watsco

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.