Watsco, Inc. $WSO Stock: Riverbridge Partners LLC Reduces Position

Riverbridge Partners LLC lowered its position in Watsco, Inc. (NYSE:WSO) by 13.7% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 103,838 shares of the construction company’s stock after selling 16,496 shares during the period. Riverbridge Partners LLC owned about 0.25% of Watsco worth $31,431,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Markel Group Inc. boosted its position in Watsco by 4.2% in the third quarter. Markel Group Inc. now owns 623,010 shares of the construction company’s stock worth $188,579,000 after purchasing an additional 25,260 shares during the last quarter. Bank of America Corp DE purchased a new stake in shares of Watsco during the 2nd quarter valued at about $119,291,000. Bank of New York Mellon Corp purchased a new stake in shares of Watsco during the 2nd quarter valued at about $97,937,000. Confluence Investment Management LLC purchased a new stake in shares of Watsco during the 3rd quarter valued at about $96,991,000. Finally, Caledonia Investments PLC lifted its stake in shares of Watsco by 12.2% in the 3rd quarter. Caledonia Investments PLC now owns 261,439 shares of the construction company’s stock worth $79,072,000 after purchasing an additional 28,512 shares during the period. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Price Performance

Shares of WSO stock opened at $311.68 on Wednesday. Watsco, Inc. has a one year low of $277.34 and a one year high of $459.00. The company’s fifty day moving average price is $306.15 and its 200-day moving average price is $363.37. The company has a market capitalization of $12.86 billion, a price-to-earnings ratio of 27.53 and a beta of 1.03.

Watsco (NYSE:WSO) last issued its earnings results on Tuesday, October 27th. The construction company reported $3.77 earnings per share for the quarter, missing the consensus estimate 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 the consensus estimate of $2.21 billion. During the same period in the prior year, the company posted $3.98 EPS. The company’s quarterly revenue was up 7.4% on a year-over-year basis. Equities research analysts expect that Watsco, Inc. will post 11.70 earnings per share for the current fiscal year.

Watsco Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Friday, October 16th were given a $3.30 dividend. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date was Friday, October 16th. Watsco’s payout ratio is presently 116.61%.

Analyst Ratings Changes

A number of equities analysts recently issued reports on the stock. Weiss Ratings downgraded shares of Watsco from a “hold (c)” rating to a “hold (c-)” rating in a report on Tuesday, October 6th. Morgan Stanley decreased their price objective on Watsco from $370.00 to $330.00 and set an “equal weight” rating on the stock in a research note on Monday, October 12th. Mizuho lowered their price objective on Watsco from $350.00 to $325.00 and set a “neutral” rating on the stock in a research report on Thursday, October 15th. Stephens reiterated an “overweight” rating and set a $485.00 price objective on shares of Watsco in a research note on Monday, August 17th. Finally, DA Davidson reduced their target price on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Two analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $373.62.

Watsco Company Profile

Watsco, Inc. distributes air-conditioning, heating, and refrigeration equipment and related parts and supplies. Its products serve residential and light commercial applications, including systems used in homes and businesses, as well as components and supplies for contractors who install and maintain them. The company sells products from a range of manufacturers through a network of distribution locations and digital platforms. Watsco serves customers in the United States, Canada, Mexico, and parts of Latin America and the Caribbean, supporting the installation, repair, and replacement of HVAC and refrigeration systems.