First Trust Advisors LP Increases Holdings in Watsco, Inc. $WSO

First Trust Advisors LP increased its position in shares of Watsco, Inc. (NYSE:WSO - Free Report) by 185.0% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 34,212 shares of the construction company's stock after acquiring an additional 22,208 shares during the quarter. First Trust Advisors LP owned approximately 0.08% of Watsco worth $12,446,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of WSO. ABN Amro Investment Solutions boosted its stake in Watsco by 57.0% during the first quarter. ABN Amro Investment Solutions now owns 3,672 shares of the construction company's stock worth $1,336,000 after buying an additional 1,333 shares during the period. PNC Financial Services Group Inc. increased its holdings in Watsco by 5.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 17,919 shares of the construction company's stock valued at $6,519,000 after purchasing an additional 861 shares during the last quarter. Oslo Pensjonsforsikring AS purchased a new stake in Watsco in the first quarter valued at approximately $214,000. WCM Investment Management LLC raised its position in Watsco by 2.4% in the first quarter. WCM Investment Management LLC now owns 4,350 shares of the construction company's stock valued at $1,518,000 after purchasing an additional 100 shares during the period. Finally, SEB Asset Management AB acquired a new position in Watsco during the first quarter worth $2,544,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Trading Down 2.5%

Shares of NYSE:WSO opened at $312.11 on Friday. The firm has a 50 day simple moving average of $380.79 and a 200-day simple moving average of $392.93. Watsco, Inc. has a twelve month low of $300.66 and a twelve month high of $459.00. The company has a market capitalization of $12.69 billion, a PE ratio of 27.07 and a beta of 1.02.

Watsco (NYSE:WSO - Get Free Report) last posted its earnings results 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 firm had revenue of $2.10 billion for the quarter, compared to analyst estimates of $2.14 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%.The firm's revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter last year, the firm posted $4.52 EPS. As a group, equities research analysts predict that Watsco, Inc. will post 12.9 EPS for the current fiscal year.

Watsco Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Thursday, July 16th will be paid a $3.30 dividend. This represents a $13.20 annualized dividend and a dividend yield of 4.2%. The ex-dividend date is Thursday, July 16th. Watsco's dividend payout ratio (DPR) is 109.54%.

Key Headlines Impacting Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Watsco reported modest revenue growth, strong e-commerce sales and continued operating efficiency. Management said the HVAC market is showing further signs of stabilization, while the company’s debt-free balance sheet provides flexibility for expansion. Watsco Second Quarter Results
• Positive Sentiment: Residential HVAC equipment sales increased 5%, and the Jackson Supply acquisition is expected to add density in important Sunbelt markets. Watsco also highlighted its strong cash generation and ongoing investments to support growth. Why Watsco Stock Crashed Today
• Neutral Sentiment: Recent institutional activity was mixed, with some large investors adding shares and others reducing positions. Reported analyst targets remain above the current trading range, although one recent broker forecast was described as pessimistic.
• Negative Sentiment: Second-quarter adjusted EPS was $4.00, below consensus estimates of approximately $4.38–$4.41 and down from $4.52 a year earlier. Revenue of about $2.10 billion also missed expectations of roughly $2.14 billion, although sales grew 2.1% year over year. Watsco Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: Gross margin normalized to 27.5% from 29.3% a year earlier, partly because the prior-year period benefited from unusually strong manufacturer price increases and tariff-related pricing. Weaker commercial sales and disruption from the transition to A2L refrigerants added to concerns about product mix and near-term earnings. Why Watsco Stock Is Down Today

Analysts Set New Price Targets

WSO has been the subject of several recent research reports. Morgan Stanley raised their price objective 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 shares of Watsco in a research note on Thursday. DA Davidson reduced their target price on shares of Watsco from $385.00 to $330.00 and set a "neutral" rating on the stock in a report on Thursday. Stephens raised their price target on shares of Watsco from $475.00 to $485.00 and gave the company an "overweight" rating in a research report on Wednesday, April 29th. 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 company's stock. Based on data from MarketBeat.com, Watsco presently has a consensus rating of "Hold" and an average target price of $395.50.

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.

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