Deutsche Bank AG Acquires New Holdings in Watsco, Inc. $WSO

Key Points

• Deutsche Bank acquired 92,175 Watsco shares worth approximately $38.4 million in the second quarter, giving it a 0.23% stake. Institutional investors collectively own 89.71% of the company.
• Watsco reported quarterly EPS of $4.00, missing the $4.41 consensus estimate, while revenue of $2.10 billion also fell short of expectations. Analysts have subsequently lowered several near-term earnings forecasts.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $395.50 price target. The company pays a $3.30 quarterly dividend, equivalent to a 4.2% yield, though its payout ratio is elevated at 114.48%.

Deutsche Bank AG purchased a new stake in Watsco, Inc. (NYSE:WSO - Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 92,175 shares of the construction company's stock, valued at approximately $38,412,000. Deutsche Bank AG owned approximately 0.23% of Watsco at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of WSO. Comerica Bank raised its stake in shares of Watsco by 36.3% during the 4th quarter. Comerica Bank now owns 45,756 shares of the construction company's stock worth $15,417,000 after purchasing an additional 12,190 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Watsco by 12.2% in the first quarter. Bank of America Corp DE now owns 239,606 shares of the construction company's stock valued at $87,166,000 after buying an additional 26,003 shares in the last quarter. Vantage Investment Partners LLC grew its stake in shares of Watsco by 70.0% in the fourth quarter. Vantage Investment Partners LLC now owns 166,172 shares of the construction company's stock valued at $55,992,000 after buying an additional 68,442 shares in the last quarter. UBS Group AG increased its holdings in Watsco by 64.1% during the fourth quarter. UBS Group AG now owns 186,875 shares of the construction company's stock worth $62,968,000 after buying an additional 72,977 shares during the last quarter. Finally, Pictet Asset Management Holding SA increased its holdings in Watsco by 6.8% during the fourth quarter. Pictet Asset Management Holding SA now owns 21,807 shares of the construction company's stock worth $7,349,000 after buying an additional 1,382 shares during the last quarter. Institutional investors and hedge funds own 89.71% of the company's stock.

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 Analysts Forecast Growth

WSO has been the subject of a number of recent analyst reports. Morgan Stanley increased their price target on shares of Watsco from $370.00 to $405.00 and gave the company an "equal weight" rating in a research note on Friday, July 10th. Robert W. Baird set a $400.00 target price on Watsco in a research note on Thursday, July 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Watsco in a report on Friday, June 26th. DA Davidson reduced their target price on shares of Watsco from $385.00 to $330.00 and set a "neutral" rating for the company in a research report on Thursday, July 30th. Finally, Wall Street Zen upgraded shares of Watsco from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Two investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $395.50.

Watsco Price Performance

Shares of NYSE WSO opened at $311.57 on Friday. The stock has a market capitalization of $12.85 billion, a PE ratio of 27.02 and a beta of 1.05. The business has a fifty day moving average price of $363.17 and a two-hundred day moving average price of $385.73. Watsco, Inc. has a fifty-two week low of $300.66 and a fifty-two week high of $459.00.

Watsco (NYSE:WSO - Get Free Report) last released its earnings results 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). Watsco had a return on equity of 14.40% and a net margin of 6.53%.The company had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. During the same period last year, the company posted $4.52 earnings per share. The business's revenue for the quarter was up 2.1% compared to the same quarter last year. On average, equities analysts expect that Watsco, Inc. will post 12.38 EPS for the current year.

Watsco Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were given a dividend of $3.30 per share. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date was Thursday, July 16th. Watsco's dividend payout ratio is currently 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.

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