Watsco, Inc. (NYSE:WSO), a leading construction company, has recently garnered the attention of institutional investor MJP Associates Inc. ADV. In the second quarter, MJP Associates Inc. ADV acquired 619 shares of Watsco’s stock, with an approximate value of $236,000. This new position was revealed in a recent 13F filing with the Securities and Exchange Commission.
This acquisition indicates MJP Associates Inc. ADV’s confidence in Watsco’s potential for growth and stability in the market. As an institutional investor, their decision to invest in Watsco signifies their belief in the company’s long-term prospects.
Furthermore, Watsco recently announced its quarterly dividend which was paid on July 31st. Investors who were recorded as shareholders on July 17th received a dividend payment amounting to $2.45 per share. It should be noted that the ex-dividend date for this particular dividend was on July 14th.
This quarterly dividend payout translates to an annualized rate of $9.80 per share and amounts to a yield of 2.75%. With a dividend payout ratio (DPR) of 66.08%, Watsco is committed to providing consistent returns to its shareholders.
The acquisition by MJP Associates Inc., combined with Watsco’s commitment to shareholder dividends, showcases the company’s dedication towards maximizing shareholder value and rewarding investors for their continued support.
Overall, this recent development reinforces Watsco’s position as a reliable and lucrative investment opportunity within the construction industry.
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Updated on: 18/09/2023
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Watsco: A Rising Star in the Construction Industry
The perplexing world of hedge funds and stock positions can leave many investors scratching their heads as they try to make sense of the ever-changing landscape. In recent times, several hedge funds have made notable changes to their positions in Watsco (WSO), a construction company that has attracted attention from institutional investors and hedge funds alike.
One such hedge fund, American Century Companies Inc., increased its position in Watsco by 13.2% in the first quarter of this year. The company now owns 2,280 shares of Watsco’s stock valued at $695,000, after purchasing an additional 265 shares during that period. This move highlights the confidence that American Century Companies Inc. has in Watsco’s potential for growth and profitability.
Another player in the hedge fund industry, Cetera Advisor Networks LLC, acquired a new position in Watsco during the first quarter with a value of $229,000. This shows that even smaller hedge funds are recognizing the opportunities presented by Watsco’s stock.
Bank of Montreal Can also raised its position in Watsco by 2.8% during the same period, owning 7,429 shares worth $2.29 million after acquiring an extra 201 shares. APG Asset Management N.V. jumped on board as well, purchasing a new stake worth $246,000.
Great West Life Assurance Co. Can rounded out the group of institutional investors and hedge funds making moves on Watsco’s stock, growing its stake by 9.1% during the first quarter to reach ownership of 19,121 shares valued at $5.99 million after purchasing an additional 1,596 shares.
In total, institutional investors and hedge funds now own a staggering 89.49% of Watsco’s stock – a testament to its appeal within this exclusive investor circle.
A number of brokerages have commented on WSO in recent times, providing further insight into the company’s prospects. Stephens reiterated an “overweight” rating and issued a price objective of $450.00 on Watsco’s stock. Loop Capital raised its price objective from $335.00 to $350.00, while Mizuho initiated coverage with a “neutral” rating and a $360.00 price objective.
Robert W. Baird also raised their price target to $380.00 and gave the stock an “outperform” rating, highlighting optimism about Watsco’s future performance.
Looking at recent trading activity, WSO stock traded at $356.88 on Monday, with 62,042 shares changing hands – slightly below the average volume of 321,879 shares traded daily. Watsco’s 50-day moving average stood at $360.30, while its 200-day moving average was recorded at $342.26.
With a market capitalization of $13.94 billion and a PE ratio of 23.78, Watsco has firmly established itself as a key player in the construction industry. The company’s beta value sits comfortably around 0.95, indicating moderate volatility compared to the broader market.
Additionally, Watsco boasts impressive financials, with a debt-to-equity ratio of only 0.14 – suggesting that it is in solid financial health and has minimal reliance on external financing sources.
Watsco recently posted its quarterly earnings results for August 1st, reporting earnings per share (EPS) of $4.42 – falling short of analysts’ expectations by ($0.45). Despite this slight disappointment, the company generated revenue of $2 billion during the quarter – slightly lower than the projected figure of $2.19 billion.
Net margin for this period stood at 8.06% while return on equity reached an impressive 22.94%. Although quarterly revenue was down by 6.3% year-over-year, Watsco posted strong EPS in the previous year of $4.93.
Looking ahead, sell-side analysts forecast that Watsco will post earnings per share of 14.2 for the current year – showcasing continued growth potential for this prominent construction company.
In conclusion, Watsco has attracted significant attention from institutional investors and hedge funds, with many making changes to their positions in recent months. Positive ratings from various brokerages also highlight the positive sentiment surrounding Watsco’s future prospects. While some may view the slight deviation from analysts’ expectations as cause for concern, it is important to remember that Watsco has posted solid financial performance in previous quarters. With a healthy balance sheet and promising industry position, Watsco is poised to continue its trajectory as an influential player in the construction sector.
