Watsco (NYSE:WSO) Hits New 1-Year High – Time to Buy?

Shares of Watsco, Inc. (NYSE:WSO) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $521.66 and last traded at $519.99, with a volume of 45125 shares trading hands. The stock had previously closed at $516.83.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on WSO shares. Robert W. Baird lowered their price objective on Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a research note on Thursday, October 24th. JPMorgan Chase & Co. raised their price objective on Watsco from $420.00 to $425.00 and gave the company a “neutral” rating in a research note on Wednesday, July 31st.

Watsco Stock Performance

The firm has a market cap of $21.34 billion, a P/E ratio of 40.84 and a beta of 0.88. The firm has a fifty day moving average of $484.96 and a 200-day moving average of $478.97.

Watsco (NYSE:WSO) last announced its quarterly earnings results 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). The company had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.24 billion. Watsco had a return on equity of 17.77% and a net margin of 6.99%. The company’s revenue for the quarter was up 1.6% on a year-over-year basis. During the same period last year, the business posted $4.35 EPS. Equities research analysts expect that Watsco, Inc. will post 13.2 earnings per share for the current year.

Watsco Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 31st. Shareholders of record on Wednesday, October 16th were paid a dividend of $2.70 per share. This represents a $10.80 annualized dividend and a yield of 2.04%. The ex-dividend date was Wednesday, October 16th. Watsco’s payout ratio is currently 83.46%.

Institutional Trading of Watsco

Hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC raised its stake in Watsco by 256.3% during the 1st quarter. EverSource Wealth Advisors LLC now owns 3,374 shares of the construction company’s stock valued at $1,510,000 after acquiring an additional 2,427 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in Watsco during the 1st quarter valued at $491,000. Gateway Investment Advisers LLC bought a new stake in Watsco during the 2nd quarter valued at $2,109,000. Vanguard Group Inc. raised its stake in Watsco by 4.5% during the 1st quarter. Vanguard Group Inc. now owns 3,411,894 shares of the construction company’s stock valued at $1,473,836,000 after acquiring an additional 146,305 shares in the last quarter. Finally, William Blair Investment Management LLC raised its stake in Watsco by 6.2% during the 1st quarter. William Blair Investment Management LLC now owns 66,966 shares of the construction company’s stock valued at $28,927,000 after acquiring an additional 3,881 shares in the last quarter. Institutional investors own 89.71% of the company’s stock.

About Watsco

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.