4,841 Watsco, Inc. $WSO Shares Sold by Redmond Asset Management LLC

Key Points

• Redmond Asset Management cut its Watsco stake by 14.1%, selling 4,841 shares and retaining 29,497 shares valued at approximately $8.9 million. Institutional investors and hedge funds collectively own 89.71% of Watsco.
• Watsco reported third-quarter revenue of $2.22 billion, up 7.4% year over year and slightly above estimates, but EPS of $3.77 missed the $4.10 consensus and declined from $3.98 a year earlier. Shares were down 3.5%, while profitability also weakened.
• The company declared a quarterly dividend of $3.30, representing an annualized payout of $13.20 and a 4.5% yield. Analysts maintain a consensus “Hold” rating with an average price target of $373.62.

Redmond Asset Management LLC decreased its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 14.1% during the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 29,497 shares of the construction company's stock after selling 4,841 shares during the period. Watsco comprises approximately 2.6% of Redmond Asset Management LLC's investment portfolio, making the stock its 4th biggest holding. Redmond Asset Management LLC's holdings in Watsco were worth $8,928,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Laurel Wealth Advisors LLC bought a new position in shares of Watsco during the 3rd quarter worth approximately $34,000. Western Wealth Management LLC acquired a new position in shares of Watsco during the 1st quarter worth approximately $41,000. Versant Capital Management Inc increased its holdings in shares of Watsco by 293.3% during the 2nd quarter. Versant Capital Management Inc now owns 118 shares of the construction company's stock worth $49,000 after acquiring an additional 88 shares during the last quarter. N.E.W. Advisory Services LLC acquired a new position in shares of Watsco during the 2nd quarter worth approximately $67,000. Finally, Jones Financial Companies Lllp bought a new stake in Watsco in the 2nd quarter valued at $71,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco Stock Down 3.5%

Shares of WSO stock opened at $290.36 on Thursday. Watsco, Inc. has a 12-month low of $277.34 and a 12-month high of $459.00. The company has a market capitalization of $11.98 billion, a PE ratio of 25.18 and a beta of 1.06. The firm has a 50 day moving average price of $306.35 and a two-hundred day moving average price of $366.43.

Watsco (NYSE:WSO - Get Free Report) last posted its earnings results on Tuesday, October 27th. The construction company reported $3.77 EPS for the quarter, missing the consensus estimate of $4.10 by ($0.33). The firm had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.21 billion. Watsco had a net margin of 6.53% and a return on equity of 14.40%. Watsco's revenue for the quarter was up 7.4% compared to the same quarter last year. During the same period in the previous year, the company posted $3.98 EPS. As a group, research analysts expect that Watsco, Inc. will post 12.19 EPS for the current year.

Watsco Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Friday, October 16th will be paid a $3.30 dividend. The ex-dividend date is Friday, October 16th. This represents a $13.20 annualized dividend and a yield of 4.5%. Watsco's payout ratio is 114.48%.

Key Watsco News

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Watsco reported record third-quarter revenue of $2.22 billion, up 7.4% year over year and slightly above expectations. Management cited improving demand, its technology platform and entrepreneurial sales culture as ongoing growth drivers. Watsco Reports Record Third Quarter Sales, Strong Cash Flow and Improving Demand
• Positive Sentiment: Recent acquisitions of Jackson Supply Company and The Granite Group added 107 locations and approximately $730 million in annualized revenue, supporting Watsco’s expansion strategy. Watsco Posts Record Q3 Revenue, Expands Through Acquisitions
• Positive Sentiment: Operating cash flow reached $325 million in the quarter, while nine-month cash flow rose 79% to $303.7 million. Watsco also replaced its prior $600 million revolving facility with a new syndicated credit facility, expanding financial flexibility for acquisitions and operations. Watsco Expands Liquidity with New Syndicated Credit Facility
• Neutral Sentiment: Watsco’s HVAC distribution business benefits from relatively resilient replacement demand, which may provide longer-term support even when broader consumer activity weakens. Watsco and Ferguson Shareholders
• Negative Sentiment: Third-quarter diluted EPS was $3.77, below analyst estimates of roughly $4.10–$4.13 and down from $3.98 a year earlier. The earnings shortfall is the primary reason for the negative market reaction. Watsco Q3 Earnings Miss Estimates
• Negative Sentiment: Profitability weakened: net income declined to $182.8 million, operating income fell 4% to $225.2 million, and gross margin was 26.4%. The results suggest cost or mix pressures offset the benefit of higher revenue. Watsco Stock Slides After Q3 2026 Earnings Misses Estimates

Analyst Upgrades and Downgrades

WSO has been the subject of several research reports. Weiss Ratings downgraded Watsco from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday, October 6th. Robert W. Baird set a $400.00 price objective on shares of Watsco in a research report on Thursday, July 30th. Zacks Research upgraded shares of Watsco from a "strong sell" rating to a "hold" rating in a report on Wednesday, October 21st. Stephens reiterated an "overweight" rating and issued a $485.00 price objective on shares of Watsco in a report on Monday, August 17th. Finally, Morgan Stanley dropped their price objective on shares of Watsco from $370.00 to $330.00 and set an "equal weight" rating on the stock in a research report on Monday, October 12th. Two investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, Watsco has a consensus rating of "Hold" and a consensus price target of $373.62.

About Watsco

Watsco, Inc NYSE: WSO is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.

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