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

Watsco, Inc. (NYSE:WSO) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. 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 changing hands.

The construction company reported $2.37 EPS for the quarter, beating analysts’ consensus estimates of $2.13 by $0.24. Watsco had a return on equity of 17.77% and a net margin of 6.99%.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 31st. Investors of record on Friday, January 17th were issued 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 Friday, January 17th. Watsco’s dividend payout ratio is presently 83.46%.

Analyst Ratings Changes

WSO has been the topic of a number of analyst reports. Raymond James began coverage on shares of Watsco in a research report on Friday, January 17th. They issued a “market perform” rating on the stock. Northcoast Research initiated coverage on Watsco in a report on Friday, November 22nd. They set a “neutral” rating on the stock. Finally, Robert W. Baird dropped their price objective on Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a report on Thursday, October 24th. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. According to MarketBeat.com, Watsco has a consensus rating of “Hold” and an average target price of $488.33.

Insider Activity at Watsco

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of the business’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $508.21, for a total transaction of $5,589,293.58. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 12.86% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. J. W. Coons Advisors LLC boosted its position in shares of Watsco by 0.7% in the third quarter. J. W. Coons Advisors LLC now owns 2,999 shares of the construction company’s stock worth $1,475,000 after purchasing an additional 20 shares during the period. My Legacy Advisors LLC boosted its holdings in Watsco by 3.2% in the 4th quarter. My Legacy Advisors LLC now owns 687 shares of the construction company’s stock worth $329,000 after buying an additional 21 shares during the period. Avidian Wealth Enterprises LLC boosted its holdings in Watsco by 1.8% in the 4th quarter. Avidian Wealth Enterprises LLC now owns 1,196 shares of the construction company’s stock worth $567,000 after buying an additional 21 shares during the period. Centennial Wealth Advisory LLC increased its stake in Watsco by 3.0% in the 4th quarter. Centennial Wealth Advisory LLC now owns 754 shares of the construction company’s stock worth $358,000 after buying an additional 22 shares in the last quarter. Finally, M&T Bank Corp raised its holdings in Watsco by 1.4% during the fourth quarter. M&T Bank Corp now owns 1,686 shares of the construction company’s stock valued at $799,000 after acquiring an additional 23 shares during the period. 89.71% of the stock is currently owned by institutional investors.

Watsco Price Performance

The firm has a market capitalization of $21.41 billion, a PE ratio of 40.97 and a beta of 0.95. The company has a 50-day moving average price of $484.96 and a 200 day moving average price of $491.61.

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.