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

Diversify Advisory Services LLC bought a new position in Watsco, Inc. (NYSE:WSO) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 1,754 shares of the construction company’s stock, valued at approximately $639,000.

Other large investors have also made changes to their positions in the company. Torren Management LLC acquired a new position in Watsco in the 4th quarter worth approximately $26,000. Bayban acquired a new stake in Watsco during the 4th quarter valued at $29,000. Bamco Inc. NY purchased a new stake in shares of Watsco in the fourth quarter valued at $35,000. Laurel Wealth Advisors LLC purchased a new stake in shares of Watsco in the fourth quarter valued at $37,000. Finally, Quarry LP purchased a new stake in shares of Watsco in the fourth quarter valued at $37,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on WSO shares. DA Davidson lowered their price target on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a report on Thursday, July 30th. Weiss Ratings reissued a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. Robert W. Baird set a $400.00 price objective on Watsco in a research report on Thursday, July 30th. Wall Street Zen raised Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Morgan Stanley lifted their target price on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Two equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $395.50.

Watsco News Roundup

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.

Watsco Trading Down 1.6%

NYSE WSO opened at $314.48 on Friday. Watsco, Inc. has a 1-year low of $300.66 and a 1-year high of $459.00. The company has a market capitalization of $12.97 billion, a PE ratio of 27.27 and a beta of 1.05. The firm’s fifty day simple moving average is $364.54 and its 200-day simple moving average is $386.25.

Watsco (NYSE:WSO) last announced its quarterly earnings data 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). The firm had revenue of $2.10 billion for the quarter, compared to analysts’ expectations of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.Watsco’s revenue was up 2.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $4.52 earnings per share. As a group, analysts predict that Watsco, Inc. will post 12.38 EPS for the current year.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Thursday, July 16th were paid 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 dividend payout ratio (DPR) is 114.48%.

Watsco 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.