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

Watsco, Inc. (NYSE:WSO) shares reached a new 52-week high on Wednesday . The company traded as high as $540.54 and last traded at $538.34, with a volume of 24093 shares changing hands. The stock had previously closed at $533.36.

Wall Street Analysts Forecast Growth

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

Watsco Price Performance

The stock has a fifty day moving average of $491.03 and a 200 day moving average of $481.73. The firm has a market capitalization of $21.21 billion, a P/E ratio of 40.60 and a beta of 0.88.

Watsco (NYSE:WSO) last issued its 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 firm had revenue of $2.16 billion during the quarter, compared to the consensus estimate of $2.24 billion. Watsco had a net margin of 6.99% and a return on equity of 17.77%. The business’s quarterly revenue was up 1.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.35 earnings per share. Equities analysts forecast that Watsco, Inc. will post 13.2 EPS for the current fiscal year.

Watsco Dividend Announcement

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

Institutional Investors Weigh In On Watsco

A number of hedge funds and other institutional investors have recently modified their holdings of WSO. EntryPoint Capital LLC boosted its holdings in shares of 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 buying an additional 29 shares in the last quarter. Quarry LP purchased a new stake in shares of Watsco during the 2nd quarter worth approximately $26,000. Tortoise Investment Management LLC raised its holdings 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 buying an additional 32 shares during the period. Ashton Thomas Securities LLC purchased a new stake in Watsco during the 3rd quarter valued at $43,000. Finally, Massmutual Trust Co. FSB ADV grew its position in shares of Watsco by 30.6% during the 3rd quarter. Massmutual Trust Co. FSB ADV now owns 94 shares of the construction company’s stock worth $46,000 after buying an additional 22 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.