Watsco (NYSE:WSO) Reaches New 52-Week Low – Should You Sell?

Watsco, Inc. (NYSE:WSO) shares hit a new 52-week low during trading on Tuesday . The company traded as low as $298.01 and last traded at $299.8580, with a volume of 113426 shares trading hands. The stock had previously closed at $310.80.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley upped their target price on shares of Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a report on Friday, July 10th. DA Davidson cut their price target on Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a report on Friday, June 26th. Robert W. Baird set a $400.00 target price on shares of Watsco in a research note on Thursday, July 30th. Finally, Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Two investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $395.50.

Watsco Trading Up 4.4%

The stock has a market capitalization of $13.01 billion, a P/E ratio of 27.36 and a beta of 1.05. The business has a 50-day moving average price of $358.59 and a two-hundred day moving average price of $383.76.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%.The firm had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the prior year, the company earned $4.52 EPS. The company’s revenue for the quarter was up 2.1% compared to the same quarter last year. On average, sell-side analysts forecast that Watsco, Inc. will post 12.21 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were paid a $3.30 dividend. The ex-dividend date of this dividend was Thursday, July 16th. This represents a $13.20 annualized dividend and a yield of 4.2%. Watsco’s dividend payout ratio is presently 114.48%.

Institutional Trading of Watsco

A number of hedge funds have recently made changes to their positions in the company. Torren Management LLC acquired a new stake in shares of Watsco in the fourth quarter valued at about $26,000. Bayban acquired a new position in shares of Watsco in the fourth quarter worth approximately $29,000. Bamco Inc. NY bought a new stake in Watsco in the fourth quarter valued at approximately $35,000. Laurel Wealth Advisors LLC acquired a new stake in Watsco during the 4th quarter valued at approximately $37,000. Finally, Quarry LP acquired a new stake in Watsco during the 4th quarter valued at approximately $37,000. 89.71% of the stock is owned by institutional investors and hedge funds.

About Watsco

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.