Watsco (NYSE:WSO) Sets New 52-Week High – Should You Buy?

Watsco, Inc. (NYSE:WSO)’s stock price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $540.54 and last traded at $538.34, with a volume of 24093 shares. The stock had previously closed at $533.36.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. JPMorgan Chase & Co. raised their price objective on Watsco from $420.00 to $425.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 31st. Robert W. Baird reduced their price target on Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday, October 24th.

Watsco Price Performance

The company has a market cap of $21.21 billion, a price-to-earnings ratio of 40.60 and a beta of 0.88. The stock has a 50 day simple moving average of $491.03 and a two-hundred day simple moving average of $481.73.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.73 by ($0.51). Watsco had a net margin of 6.99% and a return on equity of 17.77%. The firm had revenue of $2.16 billion during the quarter, compared to analysts’ expectations of $2.24 billion. During the same quarter in the prior year, the firm posted $4.35 EPS. Watsco’s quarterly revenue was up 1.6% compared to the same quarter last year. As a group, research analysts forecast that Watsco, Inc. will post 13.2 EPS for the current year.

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 31st. Investors of record on Wednesday, October 16th were given a $2.70 dividend. The ex-dividend date of this dividend was Wednesday, October 16th. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.06%. Watsco’s dividend payout ratio (DPR) is presently 83.46%.

Institutional Trading of Watsco

A number of large investors have recently made changes to their positions in the company. EntryPoint Capital LLC raised its stake in Watsco by 100.0% during the 1st quarter. EntryPoint Capital LLC now owns 58 shares of the construction company’s stock valued at $25,000 after acquiring an additional 29 shares during the last quarter. Quarry LP purchased a new stake in Watsco during the 2nd quarter valued at approximately $26,000. Tortoise Investment Management LLC raised its stake in Watsco by 76.2% during the 2nd quarter. Tortoise Investment Management LLC now owns 74 shares of the construction company’s stock valued at $34,000 after acquiring an additional 32 shares during the last quarter. Ashton Thomas Securities LLC purchased a new stake in Watsco during the 3rd quarter valued at approximately $43,000. Finally, Massmutual Trust Co. FSB ADV raised its stake in Watsco by 30.6% during the 3rd quarter. Massmutual Trust Co. FSB ADV now owns 94 shares of the construction company’s stock valued at $46,000 after acquiring an additional 22 shares during the last quarter. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Company Profile

Watsco, Inc, together with its subsidiaries, engages in the distribution of air conditioning, heating, refrigeration equipment, and related parts and supplies in the United States and internationally. The company distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.