Geneva Capital Management LLC Lowers Stock Holdings in Watsco, Inc. $WSO

Key Points

• Geneva Capital Management reduced its position in Watsco by 12.2%, selling 9,099 shares and leaving 65,221 shares valued at about $26.37 million (≈0.16% of the company).
• Watsco missed the quarter with EPS of $1.68 versus $1.94 expected and revenue down 9.9% year‑over‑year, while analysts hold an average "Hold" rating and a $409 price target.
• Institutional investors own roughly 89.71% of the stock; Watsco pays a $3.00 quarterly dividend (annualized $12.00) for a 3.2% yield but has a high payout ratio of 99.09%.

Geneva Capital Management LLC lessened its position in Watsco, Inc. (NYSE:WSO - Free Report) by 12.2% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 65,221 shares of the construction company's stock after selling 9,099 shares during the quarter. Geneva Capital Management LLC owned approximately 0.16% of Watsco worth $26,369,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the company. BNP Paribas Financial Markets boosted its holdings in Watsco by 4.1% in the third quarter. BNP Paribas Financial Markets now owns 13,866 shares of the construction company's stock valued at $5,606,000 after purchasing an additional 548 shares during the period. Mackenzie Financial Corp increased its holdings in Watsco by 1,035.8% during the 3rd quarter. Mackenzie Financial Corp now owns 35,188 shares of the construction company's stock worth $14,227,000 after purchasing an additional 32,090 shares during the period. Franklin Resources Inc. boosted its stake in shares of Watsco by 0.4% in the 3rd quarter. Franklin Resources Inc. now owns 31,814 shares of the construction company's stock valued at $12,862,000 after buying an additional 133 shares during the period. Van ECK Associates Corp grew its position in shares of Watsco by 2.0% during the third quarter. Van ECK Associates Corp now owns 6,139 shares of the construction company's stock worth $2,482,000 after buying an additional 119 shares in the last quarter. Finally, Promus Capital LLC purchased a new stake in shares of Watsco during the third quarter worth approximately $165,000. 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: Short interest fell meaningfully in February (shares short down ~12.4% to ~3.08M, ~8.7% of float, short-interest ratio ~7.8 days), reducing a portion of the downside squeeze risk and signaling some bearish positions being covered.
• Positive Sentiment: Zacks raised a few quarterly estimates — notably Q3 2027 to $4.77 (from $4.64) and Q4 2027 to $2.42 (from $2.27) — suggesting pockets of stronger expected demand in later 2027 that could support forward valuation if trends persist.
• Neutral Sentiment: Zacks published a FY2028 estimate of $15.63/share and maintained a "Hold" rating; the shop's revisions are mixed overall, so this is more informational than a directional endorsement by itself.
• Negative Sentiment: Multiple near-term cuts from Zacks: Q1 2026 trimmed to $1.74 (from $2.00), Q2 2026 to $4.27 (from $4.53), Q3 2026 to $4.22 (from $4.27), Q1 2027 to $1.89 (from $2.07) and Q2 2027 to $4.74 (from $4.97); FY2027 was nudged down to $13.83 (from $13.95). These downgrades to near-term earnings expectations are likely the primary reason for intraday weakness.
• Negative Sentiment: Negative press/analysis may amplify selling pressure — e.g., a recent MSN piece arguing to avoid WSO and recommending an alternative. 3 reasons to avoid WSO and 1 stock to buy instead

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Zacks Research raised shares of Watsco from a "strong sell" rating to a "hold" rating in a research report on Wednesday, February 25th. Wolfe Research set a $349.00 price objective on shares of Watsco in a research note on Tuesday, December 9th. Morgan Stanley cut their target price on Watsco from $460.00 to $370.00 and set an "equal weight" rating on the stock in a research report on Wednesday, January 14th. JPMorgan Chase & Co. boosted their target price on Watsco from $370.00 to $400.00 and gave the company a "neutral" rating in a report on Thursday, February 19th. Finally, UBS Group started coverage on shares of Watsco in a research note on Monday, January 5th. They set a "neutral" rating and a $370.00 target price for the company. One equities research analyst has rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, Watsco presently has an average rating of "Hold" and an average price target of $409.00.

Watsco Stock Performance

WSO stock opened at $374.03 on Thursday. The stock has a 50-day simple moving average of $392.76 and a 200-day simple moving average of $377.01. Watsco, Inc. has a 1 year low of $323.05 and a 1 year high of $521.70. The firm has a market cap of $15.17 billion, a P/E ratio of 30.89 and a beta of 1.03.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The construction company reported $1.68 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.94 by ($0.26). Watsco had a return on equity of 15.49% and a net margin of 6.87%.The company had revenue of $1.58 billion during the quarter, compared to the consensus estimate of $1.62 billion. During the same period last year, the business posted $2.37 EPS. The company's revenue for the quarter was down 9.9% on a year-over-year basis. On average, equities research analysts predict that Watsco, Inc. will post 14.62 EPS for the current year.

Watsco Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, January 30th. Stockholders of record on Friday, January 16th were paid a dividend of $3.00 per share. The ex-dividend date of this dividend was Friday, January 16th. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.2%. Watsco's dividend payout ratio (DPR) is 99.09%.

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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