Watsco (NYSE:WSO) Stock Price Crosses Above 50 Day Moving Average – Time to Sell?

Watsco, Inc. (NYSE:WSO) shares passed above its 50-day moving average during trading on Monday. The stock has a 50-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 trading hands.

Analyst Upgrades and Downgrades

WSO has been the subject of several research analyst reports. Zacks Research raised Watsco from a “strong sell” rating to a “hold” rating in a research note on Wednesday, October 21st. Stephens reiterated an “overweight” rating and set a $485.00 target price on shares of Watsco in a research report on Monday, August 17th. Robert W. Baird set a $400.00 target price on Watsco in a report on Thursday, July 30th. Mizuho dropped their price target on Watsco from $350.00 to $325.00 and set a “neutral” rating for the company in a research report on Thursday, October 15th. Finally, DA Davidson cut their price target on Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, Watsco has a consensus rating of “Hold” and a consensus target price of $373.62.

Watsco Price Performance

The company’s 50-day moving average is $305.91 and its 200-day moving average is $365.42. The firm has a market capitalization of $13.09 billion, a price-to-earnings ratio of 28.02 and a beta of 1.06.

Watsco (NYSE:WSO) last released its quarterly earnings data on Tuesday, October 27th. The construction company reported $3.77 EPS for the quarter, missing analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations 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. Sell-side analysts anticipate that Watsco, Inc. will post 11.72 earnings per share for the current year.

Watsco Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Friday, October 16th were paid a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date was Friday, October 16th. Watsco’s payout ratio is currently 116.61%.

Institutional Investors Weigh In On Watsco

Large investors have recently modified their holdings of the stock. Laurel Wealth Advisors LLC acquired a new position in Watsco during the 3rd quarter worth approximately $34,000. Heritage Family Offices LLP purchased a new position in Watsco in the 3rd quarter worth approximately $39,000. Western Wealth Management LLC acquired a new stake in Watsco in the first quarter valued at approximately $41,000. Legacies Wealth LLC acquired a new stake in Watsco in the third quarter valued at approximately $47,000. Finally, Versant Capital Management Inc grew its position in 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. Institutional investors and hedge funds own 89.71% of the company’s stock.

About Watsco

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.