23,693 Shares in Watsco, Inc. $WSO Purchased by Commerce Bank

Commerce Bank purchased a new stake in shares of Watsco, Inc. (NYSE:WSO) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 23,693 shares of the construction company’s stock, valued at approximately $9,874,000.

A number of other large investors have also added to or reduced their stakes in the stock. Empowered Funds LLC grew its position in shares of Watsco by 4.1% during the 1st quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock valued at $3,013,000 after acquiring an additional 232 shares during the period. Bank of Nova Scotia increased its stake in shares of Watsco by 95.0% during the 2nd quarter. Bank of Nova Scotia now owns 1,297 shares of the construction company’s stock worth $573,000 after purchasing an additional 632 shares during the last quarter. Sei Investments Co. raised its holdings in shares of Watsco by 7.6% in the 2nd quarter. Sei Investments Co. now owns 50,442 shares of the construction company’s stock worth $22,275,000 after purchasing an additional 3,570 shares during the period. Treasurer of the State of North Carolina raised its holdings in shares of Watsco by 2.8% in the 2nd quarter. Treasurer of the State of North Carolina now owns 16,258 shares of the construction company’s stock worth $7,180,000 after purchasing an additional 437 shares during the period. Finally, Diversify Advisory Services LLC lifted its stake in Watsco by 12.0% in the second quarter. Diversify Advisory Services LLC now owns 523 shares of the construction company’s stock valued at $221,000 after purchasing an additional 56 shares during the last quarter. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco News Roundup

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.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Morgan Stanley increased their price objective on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a report on Friday, July 10th. Weiss Ratings restated a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. Wall Street Zen raised Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. DA Davidson cut their price target on Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a research note on Thursday, July 30th. Finally, Robert W. Baird set a $400.00 price objective on Watsco in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Watsco presently has an average rating of “Hold” and an average price target of $395.50.

Watsco Trading Down 0.1%

Shares of WSO stock opened at $311.57 on Monday. The stock has a market capitalization of $12.85 billion, a P/E ratio of 27.02 and a beta of 1.05. The firm’s 50 day moving average is $363.17 and its 200 day moving average is $385.72. Watsco, Inc. has a 12 month low of $300.66 and a 12 month high of $459.00.

Watsco (NYSE:WSO) last released its quarterly earnings data 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 analysts’ expectations of $2.14 billion. During the same quarter in the prior year, the firm posted $4.52 earnings per share. The firm’s quarterly revenue was up 2.1% on a year-over-year basis. On average, equities analysts predict that Watsco, Inc. will post 12.21 EPS for the current year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 16th were issued a $3.30 dividend. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Thursday, July 16th. Watsco’s dividend payout ratio (DPR) is presently 114.48%.

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.