49,860 Shares in Watsco, Inc. $WSO Bought by Heartland Advisors Inc.

Heartland Advisors Inc. bought a new stake in shares of Watsco, Inc. (NYSE:WSO) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 49,860 shares of the construction company’s stock, valued at approximately $20,778,000. Watsco comprises approximately 0.9% of Heartland Advisors Inc.’s investment portfolio, making the stock its 29th biggest holding. Heartland Advisors Inc. owned 0.12% of Watsco at the end of the most recent quarter.

A number of other hedge funds have also recently bought and sold shares of WSO. Allworth Financial LP acquired a new stake in Watsco in the 2nd quarter worth $185,000. B. Metzler seel. Sohn & Co. AG acquired a new position in shares of Watsco during the second quarter valued at about $338,000. Advisors Capital Management LLC acquired a new position in shares of Watsco during the second quarter valued at about $8,286,000. Vise Technologies Inc. bought a new stake in shares of Watsco in the second quarter valued at about $453,000. Finally, Tocqueville Asset Management L.P. bought a new stake in shares of Watsco in the second quarter valued at about $1,250,000. 89.71% of the stock is owned by institutional investors.

Watsco Stock Performance

NYSE:WSO opened at $311.57 on Friday. The company has a 50-day moving average of $363.17 and a 200-day moving average of $385.73. Watsco, Inc. has a 52 week low of $300.66 and a 52 week high of $459.00. The company has a market capitalization of $12.85 billion, a price-to-earnings ratio of 27.02 and a beta of 1.05.

Watsco (NYSE:WSO) last posted its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share 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 business had revenue of $2.10 billion during the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the previous year, the firm earned $4.52 EPS. The business’s revenue was up 2.1% compared to the same quarter last year. Sell-side analysts forecast that Watsco, Inc. will post 12.38 EPS for the current year.

Watsco Dividend Announcement

The business also recently disclosed 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. This represents a $13.20 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date of this dividend was Thursday, July 16th. Watsco’s payout ratio is presently 114.48%.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Wall Street Zen raised Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Stephens reaffirmed an “overweight” rating and issued a $485.00 price target on shares of Watsco in a report on Monday, August 17th. Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a research report on Friday, June 26th. Morgan Stanley lifted their price objective on Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a report on Friday, July 10th. Finally, DA Davidson lowered their price objective on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, Watsco presently has a consensus rating of “Hold” and a consensus price target of $395.50.

Key Headlines Impacting Watsco

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.

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.