Watsco (NYSE:WSO) Trading Down 8.9% – Time to Sell?

Shares of Watsco, Inc. (NYSE:WSO) traded down 8.9% during trading on Tuesday . The company traded as low as $340.01 and last traded at $350.9070. 331,793 shares changed hands during trading, a decline of 20% from the average session volume of 414,825 shares. The stock had previously closed at $385.27.

Wall Street Analyst Weigh In

WSO has been the topic of a number of analyst reports. Mizuho set a $425.00 price target on Watsco in a research note on Wednesday, February 18th. KeyCorp reaffirmed a “sector weight” rating on shares of Watsco in a research report on Friday, December 12th. Wolfe Research set a $349.00 price objective on Watsco in a report on Tuesday, December 9th. JPMorgan Chase & Co. raised their target price on Watsco from $370.00 to $400.00 and gave the stock a “neutral” rating in a research report on Thursday, February 19th. Finally, Zacks Research raised Watsco from a “strong sell” rating to a “hold” rating in a report on Wednesday, February 25th. One research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $409.00.

Watsco Stock Performance

The stock has a market cap of $14.90 billion, a PE ratio of 30.30 and a beta of 1.03. The firm’s 50-day moving average is $395.50 and its 200 day moving average is $375.00.

Watsco (NYSE:WSO) last issued its quarterly earnings data on Tuesday, February 17th. The construction company reported $1.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.26). Watsco had a return on equity of 15.49% and a net margin of 6.87%.The business had revenue of $1.58 billion for the quarter, compared to analysts’ expectations of $1.62 billion. During the same period in the previous year, the business posted $2.37 earnings per share. The company’s revenue for the quarter was down 9.9% on a year-over-year basis. On average, sell-side analysts predict that Watsco, Inc. will post 14.62 EPS for the current fiscal year.

Watsco Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Friday, January 16th were given a $3.00 dividend. This represents a $12.00 annualized dividend and a yield of 3.3%. The ex-dividend date was Friday, January 16th. Watsco’s payout ratio is 99.09%.

Institutional Trading of Watsco

A number of hedge funds have recently added to or reduced their stakes in WSO. CWM LLC increased its holdings in shares of Watsco by 3.8% in the fourth quarter. CWM LLC now owns 710 shares of the construction company’s stock valued at $239,000 after purchasing an additional 26 shares during the period. Hilltop National Bank grew its position in Watsco by 7.1% in the 3rd quarter. Hilltop National Bank now owns 454 shares of the construction company’s stock valued at $184,000 after buying an additional 30 shares during the last quarter. Massachusetts Financial Services Co. MA increased its stake in Watsco by 2.0% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,559 shares of the construction company’s stock valued at $525,000 after buying an additional 30 shares during the period. Apollon Wealth Management LLC increased its stake in Watsco by 6.0% in the 3rd quarter. Apollon Wealth Management LLC now owns 601 shares of the construction company’s stock valued at $243,000 after buying an additional 34 shares during the period. Finally, Northwestern Mutual Investment Management Company LLC raised its position in Watsco by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 7,814 shares of the construction company’s stock worth $2,633,000 after buying an additional 34 shares during the last quarter. 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.