Watsco (NYSE:WSO) Shares Gap Up Following Earnings Beat

Watsco, Inc. (NYSE:WSO)’s stock price gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $483.69, but opened at $520.00. Watsco shares last traded at $523.00, with a volume of 114,862 shares trading hands.

The construction company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.13 by $0.24. Watsco had a net margin of 6.99% and a return on equity of 17.77%. The company had revenue of $1.75 billion for the quarter, compared to the consensus estimate of $1.67 billion.

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, January 31st. Shareholders of record on Friday, January 17th were paid a dividend of $2.70 per share. This represents a $10.80 annualized dividend and a yield of 2.11%. The ex-dividend date of this dividend was Friday, January 17th. Watsco’s dividend payout ratio (DPR) is currently 81.51%.

Wall Street Analysts Forecast Growth

WSO has been the topic of a number of research reports. Robert W. Baird upped their price target on shares of Watsco from $540.00 to $560.00 and gave the stock an “outperform” rating in a research note on Wednesday. Raymond James initiated coverage on shares of Watsco in a research note on Friday, January 17th. They issued a “market perform” rating on the stock. Finally, Northcoast Research initiated coverage on shares of Watsco in a research note on Friday, November 22nd. They issued a “neutral” rating on the stock. Three research analysts have rated the stock with a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $495.00.

Insider Buying and Selling

In related news, EVP Barry S. Logan sold 10,998 shares of the company’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total value of $5,589,293.58. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 12.86% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Watsco

A number of large investors have recently bought and sold shares of WSO. Creative Planning boosted its holdings in Watsco by 7.7% in the third quarter. Creative Planning now owns 5,212 shares of the construction company’s stock worth $2,564,000 after purchasing an additional 371 shares in the last quarter. Blue Trust Inc. boosted its holdings in Watsco by 139.5% during the third quarter. Blue Trust Inc. now owns 527 shares of the construction company’s stock valued at $244,000 after acquiring an additional 307 shares during the period. Eastern Bank bought a new stake in Watsco during the third quarter valued at about $1,463,000. International Assets Investment Management LLC boosted its holdings in Watsco by 48,984.7% during the third quarter. International Assets Investment Management LLC now owns 233,643 shares of the construction company’s stock valued at $114,924,000 after acquiring an additional 233,167 shares during the period. Finally, Impact Partnership Wealth LLC bought a new stake in Watsco during the third quarter valued at about $397,000. 89.71% of the stock is currently owned by institutional investors.

Watsco Price Performance

The stock’s fifty day simple moving average is $484.90 and its 200-day simple moving average is $491.75. The company has a market capitalization of $20.64 billion, a P/E ratio of 39.50 and a beta of 0.95.

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.