Watsco, Inc. (NYSE:WSO) Receives Average Recommendation of “Hold” from Brokerages

Watsco, Inc. (NYSE:WSO) has earned an average recommendation of “Hold” from the ten brokerages that are presently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and one has given a buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $412.00.

A number of research firms have recently weighed in on WSO. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research report on Thursday, October 30th. Wolfe Research set a $349.00 price objective on shares of Watsco in a research note on Tuesday, December 9th. Mizuho set a $425.00 price objective on shares of Watsco in a report on Wednesday. UBS Group initiated coverage on shares of Watsco in a research note on Monday, January 5th. They set a “neutral” rating and a $370.00 target price for the company. Finally, JPMorgan Chase & Co. boosted their price target on Watsco from $360.00 to $370.00 and gave the stock a “neutral” rating in a research report on Friday, January 16th.

Hedge Funds Weigh In On Watsco

Large investors have recently modified their holdings of the stock. Ameritas Advisory Services LLC purchased a new position in Watsco in the second quarter worth about $26,000. Torren Management LLC bought a new stake in shares of Watsco during the fourth quarter valued at approximately $26,000. SJS Investment Consulting Inc. raised its holdings in Watsco by 2,366.7% in the 3rd quarter. SJS Investment Consulting Inc. now owns 74 shares of the construction company’s stock worth $30,000 after acquiring an additional 71 shares during the last quarter. TD Waterhouse Canada Inc. raised its holdings in Watsco by 242.9% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 72 shares of the construction company’s stock worth $33,000 after acquiring an additional 51 shares during the last quarter. Finally, Chilton Capital Management LLC bought a new position in Watsco in the 2nd quarter valued at approximately $34,000. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco News Summary

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Board approved a 10% increase in the annual dividend to $13.20 per share, reflecting strong cash flow and management confidence — supports yield and signals shareholder-friendly capital allocation. Watsco Boosts Annual Dividend 10% to $13.20 Per Share
• Positive Sentiment: Management reported record fourth-quarter cash flow, achieved inventory reduction targets and posted record full‑year gross margin — these operational improvements strengthen the balance sheet and cash generation profile. Watsco Reports Record Full-Year Gross Margin…
• Positive Sentiment: Company is pushing tech and AI initiatives (digital engagement, e‑commerce growth, and platform investment) to drive higher margins and contractor retention — management targets ~30% gross margin as A2L product transition stabilizes. Watsco outlines technology-driven margin expansion…
• Positive Sentiment: E‑commerce and digital engagement with contractors are highlighted as growth levers (large active user base), which can improve unit economics and customer stickiness over time. Watsco Inc (WSO) Q4 2025 Earnings Call Highlights…
• Neutral Sentiment: Analysts maintain a consensus “Hold” on WSO, signaling mixed expectations despite strong capital return actions and operational wins. Watsco Receives Consensus Recommendation of “Hold”
• Negative Sentiment: Q4 EPS of $1.68 missed the $1.94 consensus and declined versus prior-year $2.37, indicating near-term earnings pressure. Watsco (WSO) Lags Q4 Earnings and Revenue Estimates
• Negative Sentiment: Revenue of $1.58B missed expectations (~$1.62B) and was down ~9.9% year‑over‑year, underscoring demand weakness that could pressure near‑term growth and margins. Watsco misses Q4 CY2025 sales expectations

Watsco Stock Performance

WSO stock opened at $420.00 on Thursday. Watsco has a fifty-two week low of $323.05 and a fifty-two week high of $533.07. The company has a market capitalization of $17.04 billion, a price-to-earnings ratio of 34.68 and a beta of 1.04. The business’s 50 day moving average price is $375.97 and its two-hundred day moving average price is $378.71.

Watsco (NYSE:WSO) last released its quarterly earnings results on Tuesday, February 17th. The construction company reported $1.68 earnings per share for the quarter, missing the consensus estimate of $1.94 by ($0.26). The firm had revenue of $1.58 billion for the quarter, compared to the consensus estimate of $1.62 billion. Watsco had a net margin of 6.87% and a return on equity of 15.49%. The company’s revenue for the quarter was down 9.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.37 earnings per share. Sell-side analysts forecast that Watsco will post 14.62 earnings per share for the current year.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Friday, January 16th were issued a $3.00 dividend. This represents a $12.00 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Friday, January 16th. Watsco’s payout ratio is 93.75%.

About Watsco

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.