Principal Financial Group Inc. Grows Stock Position in Watsco, Inc. $WSO

Principal Financial Group Inc. increased its stake in Watsco, Inc. (NYSE:WSO) by 124.5% in the first quarter, Holdings Channel reports. The institutional investor owned 174,551 shares of the construction company’s stock after acquiring an additional 96,788 shares during the period. Principal Financial Group Inc.’s holdings in Watsco were worth $63,505,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently bought and sold shares of the company. Torren Management LLC bought a new position in Watsco during the fourth quarter valued at $26,000. Bayban bought a new stake in shares of Watsco in the 4th quarter worth about $29,000. Bamco Inc. NY bought a new stake in shares of Watsco in the 4th quarter worth about $35,000. Laurel Wealth Advisors LLC purchased a new position in shares of Watsco during the 4th quarter worth about $37,000. Finally, Quarry LP purchased a new position in shares of Watsco during the 4th quarter worth about $37,000. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Price Performance

WSO stock opened at $384.98 on Friday. Watsco, Inc. has a 12 month low of $323.05 and a 12 month high of $494.94. The firm’s 50-day moving average is $390.35 and its 200 day moving average is $392.55. The company has a market capitalization of $15.65 billion, a PE ratio of 31.95 and a beta of 1.02.

Watsco (NYSE:WSO) last released its quarterly earnings data on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.73 by $0.14. The company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.49 billion. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The firm’s quarterly revenue was up .1% on a year-over-year basis. During the same period in the previous year, the company earned $1.93 EPS. Sell-side analysts forecast that Watsco, Inc. will post 12.81 EPS for the current fiscal year.

Watsco Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 16th will be paid a dividend of $3.30 per share. This represents a $13.20 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend is Thursday, July 16th. Watsco’s payout ratio is currently 109.54%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on WSO shares. Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Morgan Stanley upped their target price on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a report on Friday, June 26th. DA Davidson assumed coverage on Watsco in a research note on Tuesday, June 16th. They set a “neutral” rating and a $385.00 price target for the company. Finally, Stephens boosted their price objective on Watsco from $475.00 to $485.00 and gave the company an “overweight” rating in a report on Wednesday, April 29th. One equities research analyst has rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $402.71.

Watsco 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.