Robert W. Baird Cuts Watsco (NYSE:WSO) Price Target to $420.00

Watsco (NYSE:WSO) had its price objective reduced by Robert W. Baird from $460.00 to $420.00 in a report published on Tuesday morning, MarketBeat reports. They currently have an outperform rating on the construction company’s stock.

Several other equities research analysts have also recently weighed in on the stock. Stephens increased their price target on shares of Watsco from $475.00 to $485.00 and gave the company an “overweight” rating in a research report on Wednesday, April 29th. Wall Street Zen upgraded shares of Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Weiss Ratings reissued a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. DA Davidson assumed coverage on Watsco in a report on Tuesday, June 16th. They set a “neutral” rating and a $385.00 price target on the stock. Finally, Morgan Stanley upped their price target on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Two equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $395.50.

Watsco Stock Performance

Shares of WSO stock opened at $312.11 on Tuesday. The company has a market capitalization of $12.69 billion, a P/E ratio of 27.07 and a beta of 1.02. Watsco has a fifty-two week low of $300.66 and a fifty-two week high of $459.00. The stock has a 50 day moving average price of $380.79 and a two-hundred day moving average price of $392.93.

Watsco (NYSE:WSO) last issued its 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 firm had revenue of $2.10 billion during the quarter, compared to the consensus estimate of $2.14 billion. During the same quarter in the prior year, the business posted $4.52 EPS. The firm’s revenue for the quarter was up 2.1% on a year-over-year basis. As a group, equities analysts predict that Watsco will post 12.9 earnings per share for the current year.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 16th will be given a $3.30 dividend. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Thursday, July 16th. Watsco’s dividend payout ratio (DPR) is currently 109.54%.

Hedge Funds Weigh In On Watsco

Hedge funds and other institutional investors have recently modified their holdings of the stock. Torren Management LLC purchased a new stake in Watsco in the fourth quarter worth about $26,000. Bayban purchased a new position in shares of Watsco during the 4th quarter worth approximately $29,000. Bamco Inc. NY purchased a new position in shares of Watsco during the 4th quarter worth approximately $35,000. Laurel Wealth Advisors LLC bought a new position in shares of Watsco in the 4th quarter worth approximately $37,000. Finally, Quarry LP bought a new position in shares of Watsco in the 4th 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: Watsco reported modest revenue growth, strong e-commerce sales and continued operating efficiency. Management said the HVAC market is showing further signs of stabilization, while the company’s debt-free balance sheet provides flexibility for expansion. Watsco Second Quarter Results
• Positive Sentiment: Residential HVAC equipment sales increased 5%, and the Jackson Supply acquisition is expected to add density in important Sunbelt markets. Watsco also highlighted its strong cash generation and ongoing investments to support growth. Why Watsco Stock Crashed Today
• Neutral Sentiment: Recent institutional activity was mixed, with some large investors adding shares and others reducing positions. Reported analyst targets remain above the current trading range, although one recent broker forecast was described as pessimistic.
• Negative Sentiment: Second-quarter adjusted EPS was $4.00, below consensus estimates of approximately $4.38–$4.41 and down from $4.52 a year earlier. Revenue of about $2.10 billion also missed expectations of roughly $2.14 billion, although sales grew 2.1% year over year. Watsco Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: Gross margin normalized to 27.5% from 29.3% a year earlier, partly because the prior-year period benefited from unusually strong manufacturer price increases and tariff-related pricing. Weaker commercial sales and disruption from the transition to A2L refrigerants added to concerns about product mix and near-term earnings. Why Watsco Stock Is Down Today

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.