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

Watsco, Inc. (NYSE:WSO) hit a new 52-week high during trading on Thursday . The stock traded as high as $546.27 and last traded at $545.95, with a volume of 69586 shares changing hands. The stock had previously closed at $533.40.

Wall Street Analysts Forecast Growth

WSO has been the topic of a number of research reports. JPMorgan Chase & Co. increased their price objective on Watsco from $420.00 to $425.00 and gave the stock a “neutral” rating in a report on Wednesday, July 31st. Northcoast Research started coverage on shares of Watsco in a research note on Friday. They set a “neutral” rating on the stock. Finally, Robert W. Baird reduced their price objective on shares of Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a research note on Thursday, October 24th. Two analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $491.25.

Watsco Stock Up 1.5 %

The business has a 50-day simple moving average of $499.99 and a 200-day simple moving average of $485.04. The stock has a market cap of $22.39 billion, a P/E ratio of 42.86 and a beta of 0.88.

Watsco (NYSE:WSO) last posted its earnings results on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.73 by ($0.51). The firm had revenue of $2.16 billion during the quarter, compared to analyst estimates 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 business posted $4.35 earnings per share. On average, analysts predict that Watsco, Inc. will post 13.06 earnings per share for the current fiscal year.

Watsco Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 31st. Investors of record on Wednesday, October 16th were given a dividend of $2.70 per share. The ex-dividend date was Wednesday, October 16th. This represents a $10.80 annualized dividend and a dividend yield of 1.95%. Watsco’s dividend payout ratio is presently 83.46%.

Institutional Investors Weigh In On Watsco

Several hedge funds have recently modified their holdings of WSO. O Shaughnessy Asset Management LLC boosted its holdings in Watsco by 32.5% in the 1st quarter. O Shaughnessy Asset Management LLC now owns 1,633 shares of the construction company’s stock valued at $705,000 after purchasing an additional 401 shares during the period. UniSuper Management Pty Ltd grew its position in Watsco by 66.7% during the first quarter. UniSuper Management Pty Ltd now owns 500 shares of the construction company’s stock worth $216,000 after buying an additional 200 shares in the last quarter. Bessemer Group Inc. increased its stake in Watsco by 159.0% during the first quarter. Bessemer Group Inc. now owns 202 shares of the construction company’s stock valued at $87,000 after acquiring an additional 124 shares during the period. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in Watsco in the 1st quarter valued at approximately $491,000. Finally, EntryPoint Capital LLC lifted its position in shares of Watsco by 100.0% in the 1st quarter. EntryPoint Capital LLC now owns 58 shares of the construction company’s stock worth $25,000 after acquiring an additional 29 shares during the period. 89.71% of the stock is owned by institutional investors.

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.