Watsco Inc. (NYSE: WSO) has seen a rise in its stock price by 6.54 in relation to its previous close of 413.57. However, the company has experienced a 9.08% gain in its stock price over the last five trading sessions. The Motley Fool reported 2024-04-24 that Watsco missed expectations in the first quarter, but said it sees momentum building. The HVAC market tends to strengthen in the summer months when air conditioning units are in demand.
Is It Worth Investing in Watsco Inc. (NYSE: WSO) Right Now?
Watsco Inc. (NYSE: WSO) has a price-to-earnings ratio that is above its average at 32.54x. The stock has a 36-month beta value of 0.87. Opinions on the stock are mixed, with 3 analysts rating it as a “buy,” 3 as “overweight,” 6 as “hold,” and 1 as “sell.”
The public float for WSO is 33.63M, and at present, short sellers hold a 11.47% of that float. On April 25, 2024, the average trading volume of WSO was 343.31K shares.
WSO’s Market Performance
WSO’s stock has seen a 9.08% increase for the week, with a 2.35% rise in the past month and a 13.76% gain in the past quarter. The volatility ratio for the week is 3.40%, and the volatility levels for the past 30 days are at 2.45% for Watsco Inc. The simple moving average for the past 20 days is 4.32% for WSO’s stock, with a 13.92% simple moving average for the past 200 days.
Analysts’ Opinion of WSO
Many brokerage firms have already submitted their reports for WSO stocks, with Deutsche Bank repeating the rating for WSO by listing it as a “Buy.” The predicted price for WSO in the upcoming period, according to Deutsche Bank is $500 based on the research report published on December 08, 2023 of the previous year 2023.
Mizuho, on the other hand, stated in their research note that they expect to see WSO reach a price target of $360. The rating they have provided for WSO stocks is “Neutral” according to the report published on July 25th, 2023.
WSO Trading at 7.79% from the 50-Day Moving Average
After a stumble in the market that brought WSO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -1.54% of loss for the given period.
Volatility was left at 2.45%, however, over the last 30 days, the volatility rate increased by 3.40%, as shares surge +3.85% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +7.36% upper at present.
During the last 5 trading sessions, WSO rose by +9.08%, which changed the moving average for the period of 200-days by +17.55% in comparison to the 20-day moving average, which settled at $423.16. In addition, Watsco Inc. saw 2.83% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at WSO starting from ALVAREZ CESAR L, who sale 5,000 shares at the price of $412.34 back on Dec 12 ’23. After this action, ALVAREZ CESAR L now owns 0 shares of Watsco Inc., valued at $2,061,700 using the latest closing price.
ALVAREZ CESAR L, the Director of Watsco Inc., sale 4,000 shares at $332.64 during a trade that took place back on May 22 ’23, which means that ALVAREZ CESAR L is holding 0 shares at $1,330,560 based on the most recent closing price.
Stock Fundamentals for WSO
Current profitability levels for the company are sitting at:
- 0.11 for the present operating margin
- 0.27 for the gross margin
The net margin for Watsco Inc. stands at 0.07. The total capital return value is set at 0.26. Equity return is now at value 24.25, with 13.66 for asset returns.
Based on Watsco Inc. (WSO), the company’s capital structure generated 0.05 points at debt to capital in total, while cash flow to debt ratio is standing at 4.86. The debt to equity ratio resting at 0.05. The interest coverage ratio of the stock is 160.37.
Currently, EBITDA for the company is 806.51 million with net debt to EBITDA at 0.24. When we switch over and look at the enterprise to sales, we see a ratio of 2.42. The receivables turnover for the company is 9.13for trailing twelve months and the total asset turnover is 1.93. The liquidity ratio also appears to be rather interesting for investors as it stands at 3.36.
Conclusion
To sum up, Watsco Inc. (WSO) has seen a better performance recently. Analysts have differing views on the stock, with some seeing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
