Danske Bank A S Makes New Investment in Watsco, Inc. $WSO

Danske Bank A S bought a new position in shares of Watsco, Inc. (NYSE:WSO) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 17,362 shares of the construction company’s stock, valued at approximately $7,235,000.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Diversify Advisory Services LLC purchased a new position in shares of Watsco during the second quarter worth approximately $639,000. Citizens Financial Group Inc. RI acquired a new stake in Watsco during the 2nd quarter worth $507,000. UNIVEST FINANCIAL Corp purchased a new position in Watsco during the 2nd quarter worth $1,917,000. K.J. Harrison & Partners Inc purchased a new position in Watsco during the 2nd quarter worth $367,000. Finally, Deutsche Bank AG acquired a new position in Watsco in the second quarter valued at $38,412,000. 89.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Robert W. Baird set a $400.00 price objective on Watsco in a research report on Thursday, July 30th. Stephens restated an “overweight” rating and set a $485.00 price target on shares of Watsco in a research note on Monday, August 17th. Morgan Stanley increased their price target on Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a report on Friday, July 10th. Wall Street Zen upgraded shares of Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Finally, DA Davidson dropped their price objective on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Two analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $395.50.

Watsco Stock Down 0.9%

WSO stock opened at $311.57 on Friday. The business has a fifty day simple moving average of $363.17 and a 200-day simple moving average of $385.73. The company has a market cap of $12.85 billion, a price-to-earnings ratio of 27.02 and a beta of 1.05. Watsco, Inc. has a 52 week low of $300.66 and a 52 week high of $459.00.

Watsco (NYSE:WSO) last posted its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). Watsco had a net margin of 6.53% and a return on equity of 14.40%. The company had revenue of $2.10 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter last year, the business posted $4.52 EPS. Watsco’s quarterly revenue was up 2.1% compared to the same quarter last year. As a group, analysts expect that Watsco, Inc. will post 12.38 earnings per share for the current fiscal year.

Watsco Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 16th were issued a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Thursday, July 16th. Watsco’s dividend payout ratio (DPR) is 114.48%.

Watsco News Summary

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks raised its EPS forecast for Q1 2027 to $1.93 from $1.92 and Q1 2028 to $2.05 from $1.93. Its FY2028 estimate also increased to $15.26 from $14.93, suggesting analysts still see longer-term earnings growth potential. Watsco stock information
• Neutral Sentiment: The firm maintained estimates of $13.53 EPS for FY2027 and $15.26 for FY2028, while its current full-year consensus reference stands at approximately $12.43 per share. The revisions indicate a mixed outlook rather than a broad change in the long-term investment thesis.
• Negative Sentiment: Zacks cut its FY2026 EPS forecast to $12.21 from $12.56 and lowered Q3 2026 EPS to $4.21 from $4.29 and Q4 2026 EPS to $2.13 from $2.15. These reductions point to softer near-term earnings expectations.
• Negative Sentiment: Estimates were also reduced for Q2 2027 to $4.61 from $4.75, Q3 2027 to $4.65 from $4.69, and FY2027 to $13.53 from $13.70. The repeated cuts may weigh on sentiment, particularly because Watsco already trades at a meaningful earnings multiple despite its recent earnings miss.

Watsco Company Profile

Watsco, Inc is the largest distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies in the United States. Headquartered in Miami, Florida, the company operates a network of more than 600 branches across the continental U.S., Canada and Puerto Rico. Watsco serves residential and commercial contractors by providing essential components for climate control systems, including air conditioners, furnaces, heat pumps, coils, refrigerants, controls and electrical and piping supplies.

Founded in 1947, Watsco has grown from a single regional distributor into an industry leader through a combination of organic expansion, acquisitions and strategic partnerships with original equipment manufacturers such as Carrier, Trane, Goodman and Lennox.