Burns Matteson Capital Management Invests $464,000 in WESCO

Burns Matteson Capital Management LLC has made a significant investment in WESCO International, Inc., acquiring a position valued at approximately $464,000 during the third quarter of 2023. According to the firm’s Form 13F filing with the Securities and Exchange Commission (SEC), Burns Matteson acquired 2,193 shares of WESCO, a leading provider of electrical and communications products.

This move is part of a broader trend, as several institutional investors and hedge funds have also increased their stakes in WESCO. For instance, Ameriprise Financial Inc. raised its holdings in WESCO by 21.2% in the first quarter, now owning 309,081 shares valued at $48 million after acquiring an additional 54,046 shares. Gabelli Funds LLC made a more dramatic increase, lifting its holdings by 210.0%, now owning 10,850 shares worth approximately $1.7 million.

Other notable investors include the United Services Automobile Association, which purchased a new stake valued at around $455,000, and Strs Ohio, which acquired a new position worth approximately $5 million. Collectively, institutional investors and hedge funds now control 93.75% of WESCO’s stock.

WESCO International’s stock price experienced a slight decline of 0.3%, opening at $253.82. The company boasts a market capitalization of $12.35 billion, a price-to-earnings ratio of 19.91, and a beta of 1.47. Key financial metrics reveal a debt-to-equity ratio of 1.18, a current ratio of 2.09, and a quick ratio of 1.20. Over the past year, WESCO’s stock has fluctuated between a low of $125.21 and a high of $279.04.

In its most recent earnings report, released on October 30, 2023, WESCO International announced earnings per share of $3.92, surpassing analyst expectations of $3.75 by $0.17. The company recorded revenue of $6.20 billion, exceeding estimates of $5.91 billion. Year-over-year, revenue grew by 12.9%, up from $3.58 earnings per share in the same quarter last year. Looking ahead, WESCO has provided guidance for fiscal year 2025, projecting earnings per share between $13.10 and $13.60.

Additionally, WESCO International has announced a quarterly dividend of $0.4538 per share, set to be paid on December 31, 2023. Shareholders of record on December 12, 2023 will receive this dividend, which translates to an annualized payout of $1.82 and a yield of 0.7%.

In terms of insider trading, Matthew S. Kulasa, Chief Accounting Officer, sold 790 shares on November 5, 2023, at an average price of $253.18, totaling $200,012.20. Following this transaction, Kulasa’s ownership dropped to 3,320 shares. Similarly, Diane Lazzaris, Executive Vice President, sold 7,522 shares on November 4, 2023, for approximately $1.93 million, reducing her stake by 14.21%.

Analysts have also weighed in on WESCO’s stock. Oppenheimer recently raised its target price from $225.00 to $255.00 while maintaining an “outperform” rating. Royal Bank of Canada upgraded WESCO from “sector perform” to “outperform,” with a new price target of $302.00. MarketBeat.com reports that WESCO currently holds a consensus rating of “Moderate Buy” with an average target price of $256.38.

WESCO International, Inc. stands as a prominent global distributor of electrical, industrial, communications, and utility products. The company supports a diverse range of customers across maintenance, repair, operations, original equipment manufacturing, and construction markets. Its extensive product portfolio includes power distribution solutions, data communications, and security systems, along with advanced supply chain management services.