Swedbank AB Reduces Holdings in Watsco, Inc. $WSO

Swedbank AB cut its stake in shares of Watsco, Inc. (NYSE:WSO) by 38.0% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 52,345 shares of the construction company’s stock after selling 32,047 shares during the quarter. Swedbank AB owned 0.13% of Watsco worth $17,638,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors also recently bought and sold shares of the stock. Prospera Financial Services Inc boosted its holdings in Watsco by 4.6% during the 4th quarter. Prospera Financial Services Inc now owns 29,399 shares of the construction company’s stock valued at $9,910,000 after acquiring an additional 1,302 shares during the period. Jefferies Financial Group Inc. purchased a new stake in Watsco during the 4th quarter valued at about $2,085,000. Markel Group Inc. boosted its holdings in Watsco by 2.2% during the 4th quarter. Markel Group Inc. now owns 577,669 shares of the construction company’s stock valued at $194,646,000 after acquiring an additional 12,500 shares during the period. Vantage Investment Partners LLC boosted its holdings in Watsco by 70.0% during the 4th quarter. Vantage Investment Partners LLC now owns 166,172 shares of the construction company’s stock valued at $55,992,000 after acquiring an additional 68,442 shares during the period. Finally, Texas Bank & Trust Co purchased a new stake in Watsco during the 4th quarter valued at about $295,000. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Watsco Price Performance

WSO opened at $374.58 on Tuesday. The business has a 50 day simple moving average of $399.70 and a two-hundred day simple moving average of $381.36. The firm has a market capitalization of $15.23 billion, a price-to-earnings ratio of 31.09 and a beta of 1.12. Watsco, Inc. has a one year low of $323.05 and a one year high of $494.94.

Watsco (NYSE:WSO) last released its quarterly earnings results on Tuesday, April 28th. The construction company reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.73 by $0.14. Watsco had a return on equity of 15.31% and a net margin of 6.85%.The business had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.49 billion. During the same quarter in the prior year, the company posted $1.93 EPS. Watsco’s quarterly revenue was up .1% compared to the same quarter last year. As a group, sell-side analysts expect that Watsco, Inc. will post 12.73 EPS for the current fiscal year.

Watsco Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Shareholders of record on Thursday, April 16th were issued a dividend of $3.30 per share. This is a positive change from Watsco’s previous quarterly dividend of $3.00. The ex-dividend date was Thursday, April 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 3.5%. Watsco’s dividend payout ratio (DPR) is currently 109.54%.

Analysts Set New Price Targets

A number of research analysts have commented on WSO shares. Zacks Research raised Watsco from a “strong sell” rating to a “hold” rating in a research report on Wednesday, February 25th. Wall Street Zen raised Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Mizuho set a $425.00 price target on Watsco in a research report on Wednesday, February 18th. JPMorgan Chase & Co. upped their price target on Watsco from $370.00 to $400.00 and gave the company a “neutral” rating in a research report on Thursday, February 19th. Finally, Stephens upped their price target on Watsco from $475.00 to $485.00 and gave the company an “overweight” rating in a research report on Wednesday, April 29th. One analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Watsco currently has an average rating of “Hold” and an average target price of $399.83.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.