Diversify Advisory Services LLC Makes New Investment in Watsco, Inc. $WSO

Diversify Advisory Services LLC purchased a new position in Watsco, Inc. (NYSE:WSO) in the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 1,754 shares of the construction company’s stock, valued at approximately $639,000.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Citizens Financial Group Inc. RI acquired a new stake in Watsco in the second quarter worth approximately $507,000. UNIVEST FINANCIAL Corp bought a new position in Watsco during the 2nd quarter valued at $1,917,000. K.J. Harrison & Partners Inc bought a new position in Watsco during the 2nd quarter valued at $367,000. Deutsche Bank AG acquired a new position in shares of Watsco during the 2nd quarter valued at $38,412,000. Finally, Phillips Wealth Planners LLC acquired a new position in shares of Watsco during the 2nd quarter valued at $548,000. 89.71% of the stock is currently owned by institutional investors.

Watsco Stock Performance

Watsco stock opened at $314.48 on Friday. The firm has a market cap of $12.97 billion, a price-to-earnings ratio of 27.27 and a beta of 1.05. Watsco, Inc. has a 1 year low of $300.66 and a 1 year high of $459.00. The firm’s 50 day moving average price is $364.54 and its two-hundred day moving average price is $386.25.

Watsco (NYSE:WSO) last announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). The company had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. Watsco had a net margin of 6.53% and a return on equity of 14.40%. Watsco’s revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the company posted $4.52 EPS. As a group, equities analysts predict that Watsco, Inc. will post 12.38 EPS for the current fiscal year.

Watsco Dividend Announcement

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

Wall Street Analyst Weigh In

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

More Watsco News

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks Research raised its FY2028 EPS forecast to $15.26 from $14.93, suggesting stronger long-term earnings potential. Separately, Stephens reaffirmed an Overweight rating on Watsco. Stephens Reaffirms Overweight Rating for Watsco
• Neutral Sentiment: The analyst revisions were mixed: Zacks increased estimates for Q1 2027 and Q1 2028, but maintained its FY2027 EPS forecast at $13.53 and FY2028 forecast at $15.26. The current full-year consensus remains $12.43 per share.
• Negative Sentiment: Zacks lowered its forecasts for Q3 2026 EPS to $4.21 from $4.29, Q4 2026 to $2.13 from $2.15, FY2026 to $12.21 from $12.56, Q2 2027 to $4.61 from $4.75, Q3 2027 to $4.65 from $4.69, Q4 2027 to $2.33 from $2.34, and FY2027 to $13.53 from $13.70. The broad downward revisions indicate softer near- and medium-term earnings expectations.
• Negative Sentiment: The latest quarterly results showed weakening profitability: EPS declined from $4.52 a year earlier and missed analysts’ estimates, while revenue increased only 2.1% year over year. Watsco is trading below its 50-day and 200-day moving averages and near its 52-week low, which may amplify investor caution.

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.