Trivant Custom Portfolio Group LLC, a prominent investment firm, has announced the acquisition of a new position in Watsco, Inc. (NYSE:WSO) during the first quarter of this year. This move was disclosed in their latest filing with the Securities and Exchange Commission (SEC). The fund purchased 442 shares of Watsco’s stock, which are estimated to be valued at approximately $141,000.
Watsco, a leading player in the construction industry, has been on the radar of many investors due to its strong performance and potential for growth. As part of its ongoing commitment to shareholders, the company recently declared its quarterly dividend payment. The dividend was disbursed on Monday, July 31st to stockholders who were recorded as shareholders on Monday, July 17th. Each share received a dividend payment of $2.45.
Moreover, it is important to note that Watsco’s ex-dividend date was Friday, July 14th. This signifies that investors who bought shares after this date are not eligible to receive the declared dividend payment. However, those who owned shares prior to this date benefited from an annualized dividend payout of $9.80 per share.
With a dividend yield of 2.84%, Watsco presents an attractive option for income-oriented investors looking for steady returns. The company’s dividend payout ratio currently stands at 66.08%, indicating that it allocates a significant portion of its earnings towards rewarding its shareholders.
It is worth mentioning that dividends play a crucial role in attracting investors by serving as a signal of financial stability and confidence in future growth prospects. As such, the declaration and consistent payment of dividends allow companies like Watsco to maintain investor trust and loyalty while generating additional interest amongst potential investors looking for reliable investments.
In conclusion, Trivant Custom Portfolio Group LLC’s recent purchase of Watsco’s shares is an indication of their confidence in the company’s growth potential. Additionally, Watsco’s declaration of a quarterly dividend payment further highlights its commitment to maximizing shareholder value. All these developments make Watsco a notable player in the construction market and a potential investment opportunity for those seeking stable returns in their portfolios.
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Hedge Funds Show Interest in Watsco as Analysts Provide Mixed Reviews on Stock Performance
On September 13, 2023, it was reported that several hedge funds had recently bought and sold shares of Watsco, a construction company. Vanguard Group Inc. increased its holdings in Watsco by 0.4% during the first quarter, now owning over 3 million shares worth $1,013,220,000. Kayne Anderson Rudnick Investment Management LLC also saw an increase in its holdings by 2.0%, with over 1.6 million shares valued at $531,577,000. Moneta Group Investment Advisors LLC experienced a significant surge in its holdings by an enormous percentage of 105,561.2%, now possessing almost 1.5 million shares worth $372,616,000. Charles Schwab Investment Management Inc., on the other hand, added to its position by 6.4% in the fourth quarter and currently owns over 1 million shares valued at $329,403,000. Lastly, FMR LLC increased its position by 15.6% during the first quarter and now holds over 1.3 million shares valued at $425,507,000.
According to reports from various equities analysts who have assessed Watsco recently, Mizuho initiated coverage on the company and gave it a “neutral” rating along with a price target of $360 per share on July 24th. Meanwhile, StockNews.com also initiated coverage on Watsco and provided a “hold” rating for the company on August 17th.
Moreover, UBS Group raised its price target for Watsco from $280 to $340 in May of this year. Morgan Stanley followed suit with an increase in price target from $323 to $326 per share but labeled the company as “underweight” on August 2nd.
Finally, Stephens reiterated an “overweight” rating for Watsco and assigned a price target of $450 per share on August 28th. In total, one analyst has rated the stock as “sell,” five have given it a “hold” rating, and three have assigned a “buy” rating. According to Bloomberg data, Watsco currently has an average rating of “Hold,” with a consensus price target of $364.
On Wednesday, September 13th, the shares of Watsco (NYSE:WSO) opened at $345.62. Over the past year, the company’s stock has ranged from a low of $228.61 to a high of $383.83. With a market capitalization of $13.50 billion and a PE ratio of 23.31, Watsco has shown its ability to perform in the construction industry.
The company boasts a current ratio of 3.02 and a quick ratio of 1.25, indicating its strong liquidity position. Additionally, its debt-to-equity ratio stands at an impressive 0.14.
Examining Watsco’s financial performance, its most recent quarterly earnings report was released on August 1st, revealing that the construction company fell short of analysts’ expectations for EPS (earnings per share). They reported $4.42 EPS for the quarter while analysts had estimated $4.87 EPS, resulting in a negative variance of ($0.45).
Furthermore, Watsco reported revenue totaling $2 billion for the quarter compared to analyst estimates of approximately $2.19 billion—a decline of 6.3% from the same period last year.
Despite this setback, Watsco maintains an impressive return on equity (ROE) figure of 22.94% and a net margin of 8.06%. These figures illustrate the company’s ability to generate profits and maximize shareholder value.
Looking ahead to the rest of fiscal year 2023, analysts predict that Watsco will post earnings per share of 14.2. Overall, while the company faces some challenges in meeting analysts’ expectations, it remains an active player in the construction industry with promising growth potential.
In conclusion, Watsco continues to attract attention from hedge funds and institutional investors due to its solid financial performance and growth prospects. Analysts have provided mixed reviews regarding the stock, with a consensus rating of “Hold” and an average price target of $364. As the construction industry evolves, Watsco will need to adapt and find innovative ways to drive revenue and deliver shareholder value.