Watsco, Inc. $WSO is Vantage Investment Partners LLC's 6th Largest Position

Key Points

• Vantage Investment Partners increased its Watsco stake by 70% in Q4, making the stock its 6th-largest holding and about 3.7% of its portfolio.
• Watsco recently reported better-than-expected quarterly results, with EPS of $1.87 versus $1.73 expected and revenue of $1.53 billion versus $1.49 billion forecast.
• Analysts remain cautious overall: Watsco has a Hold consensus rating, even though some near-term earnings estimates were nudged higher and the company raised its quarterly dividend to $3.30 per share.

Vantage Investment Partners LLC grew its stake in Watsco, Inc. (NYSE:WSO - Free Report) by 70.0% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 166,172 shares of the construction company's stock after buying an additional 68,442 shares during the quarter. Watsco makes up 3.7% of Vantage Investment Partners LLC's portfolio, making the stock its 6th biggest holding. Vantage Investment Partners LLC owned 0.41% of Watsco worth $55,992,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Torren Management LLC purchased a new stake in Watsco in the fourth quarter worth about $26,000. Laurel Wealth Advisors LLC purchased a new stake in Watsco in the fourth quarter worth about $37,000. TD Waterhouse Canada Inc. increased its position in Watsco by 151.4% in the third quarter. TD Waterhouse Canada Inc. now owns 181 shares of the construction company's stock worth $73,000 after buying an additional 109 shares in the last quarter. Strategic Advocates LLC purchased a new stake in Watsco in the third quarter worth about $74,000. Finally, Hantz Financial Services Inc. increased its position in Watsco by 86.6% in the third quarter. Hantz Financial Services Inc. now owns 209 shares of the construction company's stock worth $84,000 after buying an additional 97 shares in the last quarter. Hedge funds and other institutional investors own 89.71% of the company's stock.

Watsco News Summary

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks Research raised Watsco’s FY2026 EPS estimate to $12.56 from $12.38, suggesting slightly better expected full-year profitability. Watsco research report
• Positive Sentiment: The firm also increased its Q3 2026 EPS estimate to $4.29 from $4.22 and Q1 2027 EPS to $1.92 from $1.89, pointing to stronger near-term earnings expectations. Watsco research report
• Positive Sentiment: Zacks slightly lifted its Q2 2027 EPS forecast to $4.75 from $4.74, indicating continued stability in the outlook. Watsco research report
• Neutral Sentiment: Zacks kept a Hold rating on Watsco, which does not signal a major change in its overall view of the stock. Watsco research report
• Negative Sentiment: Longer-term estimates were trimmed, including FY2027 EPS to $13.70 from $13.83, FY2028 EPS to $14.93 from $15.63, and Q4 2027 EPS to $2.34 from $2.42, which may have weighed on sentiment. Watsco research report
• Negative Sentiment: Q2 2026 EPS was also cut slightly to $4.25 from $4.27, reinforcing the view that analysts see some earnings moderation ahead. Watsco research report

Analysts Set New Price Targets

A number of analysts have commented on the company. Zacks Research upgraded Watsco from a "strong sell" rating to a "hold" rating in a research report on Wednesday, February 25th. Stephens upped their price target on Watsco from $475.00 to $485.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 29th. Mizuho set a $425.00 price target on Watsco in a research report on Wednesday, February 18th. JPMorgan Chase & Co. upped their price target on Watsco from $370.00 to $400.00 and gave the stock a "neutral" rating in a research report on Thursday, February 19th. Finally, Wall Street Zen upgraded Watsco from a "sell" rating to a "hold" rating in a research report on Saturday, May 2nd. One equities research analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $399.83.

Watsco Trading Down 1.0%

NYSE:WSO opened at $374.58 on Friday. Watsco, Inc. has a 12-month low of $323.05 and a 12-month high of $494.94. The stock has a 50-day moving average price of $399.49 and a 200 day moving average price of $381.10. The stock has a market capitalization of $15.23 billion, a P/E ratio of 31.09 and a beta of 1.12.

Watsco (NYSE:WSO - Get Free Report) last released its earnings results on Tuesday, April 28th. The construction company reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.73 by $0.14. Watsco had a return on equity of 15.31% and a net margin of 6.85%.The firm had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.49 billion. During the same quarter last year, the business posted $1.93 earnings per share. The firm's revenue was up .1% on a year-over-year basis. On average, research analysts predict that Watsco, Inc. will post 12.73 earnings per share for the current fiscal year.

Watsco Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, April 30th. Investors of record on Thursday, April 16th were given a dividend of $3.30 per share. This is an increase from Watsco's previous quarterly dividend of $3.00. This represents a $13.20 annualized dividend and a dividend yield of 3.5%. The ex-dividend date was Thursday, April 16th. Watsco's dividend payout ratio (DPR) is 109.54%.

About Watsco

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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