Korea Investment CORP Decreases Stock Position in Watsco, Inc. $WSO

Key Points

• Korea Investment CORP trimmed its stake in Watsco by 32.2%, selling 8,240 shares to hold 17,385 shares valued at about $7.03 million; institutional investors own roughly 89.7% of the stock.
• Watsco missed quarterly EPS ($1.68 vs $1.94) and revenue ($1.58B vs $1.62B), with revenue down 9.9% year‑over‑year, and analysts largely rate the stock a Hold with an average price target of $409 amid mixed target revisions.
• The company declared a quarterly dividend of $3.00 (annualized $12.00) for a yield of 3.3%, but its dividend payout ratio is very high at 99.09%.

Korea Investment CORP trimmed its holdings in Watsco, Inc. (NYSE:WSO - Free Report) by 32.2% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 17,385 shares of the construction company's stock after selling 8,240 shares during the period. Korea Investment CORP's holdings in Watsco were worth $7,029,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in WSO. Orion Porfolio Solutions LLC increased its stake in shares of Watsco by 10.5% during the 3rd quarter. Orion Porfolio Solutions LLC now owns 7,848 shares of the construction company's stock worth $3,173,000 after purchasing an additional 744 shares in the last quarter. Level Four Advisory Services LLC lifted its stake in Watsco by 3.2% in the 3rd quarter. Level Four Advisory Services LLC now owns 5,456 shares of the construction company's stock valued at $2,206,000 after buying an additional 171 shares in the last quarter. Victory Capital Management Inc. grew its holdings in Watsco by 107.0% during the 3rd quarter. Victory Capital Management Inc. now owns 44,023 shares of the construction company's stock valued at $17,798,000 after buying an additional 22,751 shares during the last quarter. Strive Asset Management LLC purchased a new position in Watsco during the third quarter worth $4,043,000. Finally, Finemark National Bank & Trust increased its position in Watsco by 2.1% during the third quarter. Finemark National Bank & Trust now owns 16,624 shares of the construction company's stock worth $6,721,000 after buying an additional 337 shares in the last quarter. 89.71% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. JPMorgan Chase & Co. boosted their target price on shares of Watsco from $370.00 to $400.00 and gave the company a "neutral" rating in a research note on Thursday, February 19th. 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 price target on the stock. Mizuho set a $425.00 price target on shares of Watsco in a report on Wednesday, February 18th. Morgan Stanley cut their price objective on shares of Watsco from $460.00 to $370.00 and set an "equal weight" rating for the company in a research report on Wednesday, January 14th. Finally, Wolfe Research set a $349.00 target price on shares of Watsco in a research report on Tuesday, December 9th. One analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $409.00.

Watsco Trading Down 2.7%

NYSE WSO opened at $364.09 on Friday. The business's 50-day moving average price is $393.30 and its 200 day moving average price is $376.93. Watsco, Inc. has a twelve month low of $323.05 and a twelve month high of $521.70. The company has a market capitalization of $14.77 billion, a PE ratio of 30.06 and a beta of 1.03.

Watsco (NYSE:WSO - Get Free Report) last announced its quarterly earnings data on Tuesday, February 17th. The construction company reported $1.68 earnings per share 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 for the quarter, compared to analysts' expectations of $1.62 billion. During the same quarter in the previous year, the company earned $2.37 earnings per share. The company's revenue was down 9.9% on a year-over-year basis. Equities analysts predict that Watsco, Inc. will post 14.62 EPS for the current year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 30th. Shareholders of record on Friday, January 16th were issued a $3.00 dividend. This represents a $12.00 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date was Friday, January 16th. Watsco's dividend payout ratio (DPR) is 99.09%.

Watsco News Summary

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks raised some late‑stage estimates — notably Q3 and Q4 2027 — signaling expected recovery in the back half of 2027. This suggests analysts see a rebound beyond the near term. Zacks raises Q3/Q4 2027 estimates
• Positive Sentiment: Zacks also nudged Q4 2026 slightly higher and published a FY2028 estimate of $15.63, implying stronger medium‑term earnings potential if demand recovers. Zacks issues FY2028 outlook
• Neutral Sentiment: Zacks maintains a "Hold" rating on WSO; its detailed quarterly schedules remain a mix of cuts and raises, and the firm’s full‑year consensus (marketwide) still sits near $14.62 EPS. Investors should view the note as model tuning rather than a change in recommendation. Zacks Hold rating and consensus
• Negative Sentiment: Key near‑term downgrades: Zacks cut FY2026 to $12.38 from $12.93 and trimmed several 2026 quarter estimates (Q1–Q3), reflecting weaker near‑term demand and continuing pressure after Watsco’s recent quarterly revenue and EPS miss. These downward revisions likely explain the share weakness. Zacks lowers FY2026 and 2026 quarterly estimates
• Negative Sentiment: Zacks also trimmed parts of the 2027 outlook (Q1 and Q2 2027 and FY2027 modestly reduced to $13.83), signaling slower recovery timing than some investors may have expected. That dampens near‑term earnings visibility versus prior expectations. Zacks trims 2027 estimates

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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