Watsco (WSO) Downgraded by Zacks Investment Research
Watsco (NYSE:WSO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Saturday.
According to Zacks, “Watsco will gain from its industry-leading technologies and estimates e-commerce sales to touch $1 billion this year. Watsco continues to transform its business into the digital age by investing in scalable platforms for mobile apps, e-commerce, business intelligence and supply-chain optimization. Its technology evolution continues to make progress. Further, its focus on strategic acquisitions, cost-cutting initiatives and growth potential in the replacement market will drive growth. However, the company’s performance will be hurt by disruptions caused by recent hurricanes in the United States. Currency volatility, volume issue in Canada and seasonal factors also remain headwinds. The stock has also underperformed the industry over the past year.”
Several other equities analysts also recently commented on the stock. Morgan Stanley upped their price target on shares of Watsco from $151.00 to $156.00 and gave the company an “underweight” rating in a research note on Thursday, October 26th. KeyCorp restated a “buy” rating on shares of Watsco in a research note on Friday, November 17th. Susquehanna Bancshares set a $195.00 price target on shares of Watsco and gave the company a “buy” rating in a research note on Friday. Finally, Stephens set a $169.00 price target on shares of Watsco and gave the company a “hold” rating in a research note on Thursday. One analyst has rated the stock with a sell rating, four have issued a hold rating and five have issued a buy rating to the stock. Watsco presently has an average rating of “Hold” and a consensus price target of $170.71.
Watsco (NYSE:WSO) last released its quarterly earnings data on Thursday, February 8th. The construction company reported $0.90 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.00 by ($0.10). Watsco had a net margin of 4.80% and a return on equity of 14.66%. The company had revenue of $964.35 million during the quarter, compared to analyst estimates of $965.85 million. During the same quarter in the prior year, the firm earned $0.81 earnings per share. Watsco’s revenue for the quarter was up 5.6% on a year-over-year basis. equities research analysts predict that Watsco will post 6.82 EPS for the current year.
In related news, SVP Barry S. Logan sold 3,246 shares of the company’s stock in a transaction dated Wednesday, November 22nd. The shares were sold at an average price of $164.30, for a total transaction of $533,317.80. Following the completion of the sale, the senior vice president now owns 15,800 shares of the company’s stock, valued at $2,595,940. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 13.93% of the company’s stock.
Institutional investors and hedge funds have recently bought and sold shares of the stock. SeaCrest Wealth Management LLC bought a new stake in Watsco during the fourth quarter worth about $103,000. Cigna Investments Inc. New bought a new stake in Watsco during the fourth quarter worth about $205,000. CIBC Asset Management Inc bought a new stake in Watsco during the third quarter worth about $206,000. Quantbot Technologies LP bought a new stake in Watsco during the third quarter worth about $207,000. Finally, Janney Montgomery Scott LLC bought a new stake in Watsco during the third quarter worth about $215,000. 82.68% of the stock is owned by institutional investors and hedge funds.
Watsco, Inc is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the HVAC/R distribution industry in North America. As of December 31, 2016, the Company sold a range of non-equipment products, representing more than 300,000 stock keeping units, including parts, ductwork, air movement products, insulation, tools, installation supplies, thermostats and air quality products.
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