Watsco (NYSE:WSO) Shares Gap Up After Better-Than-Expected Earnings

Watsco, Inc. (NYSE:WSO - Get Free Report) shares gapped up prior to trading 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 for the quarter, beating analysts' consensus estimates of $2.13 by $0.24. Watsco had a return on equity of 17.59% and a net margin of 7.04%. The business had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.67 billion.

Watsco Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 31st. Stockholders of record on Friday, January 17th were paid a dividend of $2.70 per share. The ex-dividend date was Friday, January 17th. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.17%. Watsco's payout ratio is 81.51%.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling at Watsco

In other Watsco news, EVP Barry S. Logan sold 10,998 shares of the business's stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total transaction of $5,589,293.58. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 12.86% of the company's stock.

Institutional Trading of Watsco

A number of institutional investors have recently made changes to their positions in WSO. Toronto Dominion Bank lifted its holdings in Watsco by 32.2% in the 3rd quarter. Toronto Dominion Bank now owns 4,258 shares of the construction company's stock valued at $2,094,000 after purchasing an additional 1,038 shares in the last quarter. Citizens Financial Group Inc. RI raised its position in shares of Watsco by 40.6% in the third quarter. Citizens Financial Group Inc. RI now owns 3,217 shares of the construction company's stock valued at $1,582,000 after buying an additional 929 shares during the last quarter. Larson Financial Group LLC lifted its stake in shares of Watsco by 3,571.0% in the third quarter. Larson Financial Group LLC now owns 1,138 shares of the construction company's stock worth $560,000 after buying an additional 1,107 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its position in Watsco by 1.7% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 64,758 shares of the construction company's stock worth $31,853,000 after acquiring an additional 1,074 shares during the last quarter. Finally, Franklin Resources Inc. grew its stake in Watsco by 5.6% during the 3rd quarter. Franklin Resources Inc. now owns 51,590 shares of the construction company's stock valued at $25,645,000 after acquiring an additional 2,738 shares in the last quarter. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Stock Performance

The company has a market cap of $20.11 billion, a PE ratio of 37.59 and a beta of 0.95. The firm's 50 day moving average is $484.75 and its 200-day moving average is $492.16.

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.