Birch Capital Management LLC Reduces Holdings in Watsco, Inc. (NYSE:WSO)

Birch Capital Management LLC cut its holdings in shares of Watsco, Inc. (NYSE:WSO) by 3.3% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,905 shares of the construction company’s stock after selling 133 shares during the period. Watsco comprises about 0.9% of Birch Capital Management LLC’s investment portfolio, making the stock its 28th biggest holding. Birch Capital Management LLC’s holdings in Watsco were worth $1,851,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. FMR LLC grew its position in shares of Watsco by 10.6% during the third quarter. FMR LLC now owns 3,624,159 shares of the construction company’s stock worth $1,782,651,000 after buying an additional 346,470 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in Watsco by 5.2% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,252,822 shares of the construction company’s stock worth $616,357,000 after purchasing an additional 62,041 shares in the last quarter. State Street Corp increased its holdings in Watsco by 5.9% in the third quarter. State Street Corp now owns 1,173,762 shares of the construction company’s stock valued at $577,350,000 after buying an additional 65,846 shares during the last quarter. Blair William & Co. IL raised its stake in Watsco by 1.2% during the second quarter. Blair William & Co. IL now owns 801,152 shares of the construction company’s stock valued at $371,126,000 after buying an additional 9,141 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in Watsco by 9.9% during the 3rd quarter. Geode Capital Management LLC now owns 704,330 shares of the construction company’s stock worth $345,783,000 after buying an additional 63,254 shares during the last quarter. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Stock Performance

Shares of WSO stock traded down $6.81 during midday trading on Tuesday, reaching $464.56. 287,810 shares of the company were exchanged, compared to its average volume of 219,948. Watsco, Inc. has a 12 month low of $373.33 and a 12 month high of $571.41. The company has a market cap of $18.76 billion, a P/E ratio of 35.90 and a beta of 0.95. The company’s 50 day moving average price is $511.35 and its two-hundred day moving average price is $492.18.

Watsco (NYSE:WSO) last issued its earnings results on Wednesday, October 23rd. The construction company reported $4.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.73 by ($0.51). Watsco had a net margin of 6.99% and a return on equity of 17.77%. The company had revenue of $2.16 billion for the quarter, compared to analyst estimates of $2.24 billion. During the same period last year, the business earned $4.35 EPS. The company’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, sell-side analysts predict that Watsco, Inc. will post 13.06 earnings per share for the current year.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Friday, January 17th will be paid a dividend of $2.70 per share. This represents a $10.80 dividend on an annualized basis and a dividend yield of 2.32%. The ex-dividend date is Friday, January 17th. Watsco’s dividend payout ratio (DPR) is presently 83.46%.

Analyst Ratings Changes

A number of brokerages have weighed in on WSO. Northcoast Research assumed coverage on shares of Watsco in a report on Friday, November 22nd. They set a “neutral” rating on the stock. Robert W. Baird reduced their price objective on Watsco from $550.00 to $540.00 and set an “outperform” rating for the company in a research report on Thursday, October 24th.

Insider Activity

In other news, EVP Barry S. Logan sold 10,998 shares of the stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $508.21, for a total value of $5,589,293.58. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 12.86% of the stock is owned by corporate insiders.

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.