NewEdge Wealth LLC Acquires Shares of 8,143 Watsco, Inc. $WSO

NewEdge Wealth LLC acquired a new stake in Watsco, Inc. (NYSE:WSO) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 8,143 shares of the construction company’s stock, valued at approximately $3,393,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Torren Management LLC purchased a new position in Watsco in the 4th quarter valued at about $26,000. Bayban acquired a new position in shares of Watsco during the fourth quarter valued at approximately $29,000. Bamco Inc. NY acquired a new position in shares of Watsco during the fourth quarter valued at approximately $35,000. Laurel Wealth Advisors LLC purchased a new position in shares of Watsco in the fourth quarter valued at approximately $37,000. Finally, Quarry LP acquired a new stake in shares of Watsco in the fourth quarter worth approximately $37,000. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Key Headlines Impacting Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks Research raised its FY2028 EPS forecast to $15.26 from $14.93, suggesting stronger long-term earnings potential. Separately, Stephens reaffirmed an Overweight rating on Watsco. Stephens Reaffirms Overweight Rating for Watsco
• Neutral Sentiment: The analyst revisions were mixed: Zacks increased estimates for Q1 2027 and Q1 2028, but maintained its FY2027 EPS forecast at $13.53 and FY2028 forecast at $15.26. The current full-year consensus remains $12.43 per share.
• Negative Sentiment: Zacks lowered its forecasts for Q3 2026 EPS to $4.21 from $4.29, Q4 2026 to $2.13 from $2.15, FY2026 to $12.21 from $12.56, Q2 2027 to $4.61 from $4.75, Q3 2027 to $4.65 from $4.69, Q4 2027 to $2.33 from $2.34, and FY2027 to $13.53 from $13.70. The broad downward revisions indicate softer near- and medium-term earnings expectations.
• Negative Sentiment: The latest quarterly results showed weakening profitability: EPS declined from $4.52 a year earlier and missed analysts’ estimates, while revenue increased only 2.1% year over year. Watsco is trading below its 50-day and 200-day moving averages and near its 52-week low, which may amplify investor caution.

Watsco Trading Down 1.6%

WSO opened at $314.48 on Friday. The stock’s 50-day moving average price is $364.54 and its 200 day moving average price is $386.25. Watsco, Inc. has a 12-month low of $300.66 and a 12-month high of $459.00. The firm has a market cap of $12.97 billion, a price-to-earnings ratio of 27.27 and a beta of 1.05.

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

Watsco Dividend Announcement

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

Wall Street Analyst Weigh In

WSO has been the subject of several recent research reports. Morgan Stanley increased their price objective on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Robert W. Baird set a $400.00 target price on shares of Watsco in a report on Thursday, July 30th. Stephens reiterated an “overweight” rating and issued a $485.00 target price on shares of Watsco in a research report on Monday. DA Davidson lowered their price target on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a report on Friday, June 26th. Two research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Watsco currently has an average rating of “Hold” and an average target price of $395.50.

Watsco 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.