Landscape Capital Management L.L.C. Takes Position in Watsco, Inc. $WSO

Landscape Capital Management L.L.C. purchased a new position in Watsco, Inc. (NYSE:WSO) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 5,463 shares of the construction company’s stock, valued at approximately $2,277,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Capital International Investors grew its stake in Watsco by 103.1% during the fourth quarter. Capital International Investors now owns 4,642,893 shares of the construction company’s stock valued at $1,564,423,000 after acquiring an additional 2,356,998 shares in the last quarter. Norges Bank purchased a new stake in Watsco in the 4th quarter worth approximately $110,853,000. Corient Private Wealth LLC lifted its stake in Watsco by 202.6% in the 4th quarter. Corient Private Wealth LLC now owns 472,182 shares of the construction company’s stock worth $159,102,000 after purchasing an additional 316,129 shares in the last quarter. Bank of New York Mellon Corp purchased a new stake in Watsco in the 2nd quarter worth approximately $97,937,000. Finally, Two Sigma Investments LP boosted its holdings in Watsco by 12,054.4% in the 3rd quarter. Two Sigma Investments LP now owns 173,078 shares of the construction company’s stock valued at $69,975,000 after purchasing an additional 171,654 shares during the period. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Price Performance

WSO stock opened at $311.57 on Friday. The firm has a 50 day simple moving average of $363.17 and a two-hundred day simple moving average of $385.73. The stock has a market cap of $12.85 billion, a PE ratio of 27.02 and a beta of 1.05. Watsco, Inc. has a one year low of $300.66 and a one year high of $459.00.

Watsco (NYSE:WSO) last posted its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share for the quarter, missing the consensus estimate 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 for the quarter, compared to analysts’ expectations of $2.14 billion. During the same quarter last year, the business posted $4.52 EPS. The business’s quarterly revenue was up 2.1% compared to the same quarter last year. On average, research analysts expect that Watsco, Inc. will post 12.21 EPS for the current fiscal year.

Watsco Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were paid a $3.30 dividend. 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 dividend payout ratio is currently 114.48%.

Trending Headlines about 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.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Morgan Stanley boosted their price target on shares of Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Stephens reiterated an “overweight” rating and issued a $485.00 price objective on shares of Watsco in a research report on Monday, August 17th. Robert W. Baird set a $400.00 price objective on Watsco in a research note on Thursday, July 30th. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. Two equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, Watsco has an average rating of “Hold” and an average price target of $395.50.

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.