Kensington Investment Counsel LLC Has $4.87 Million Stock Position in Watsco, Inc. $WSO

Kensington Investment Counsel LLC reduced its holdings in shares of Watsco, Inc. (NYSE:WSO) by 16.3% in the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 13,372 shares of the construction company’s stock after selling 2,599 shares during the quarter. Watsco makes up approximately 2.3% of Kensington Investment Counsel LLC’s holdings, making the stock its 15th biggest position. Kensington Investment Counsel LLC’s holdings in Watsco were worth $4,865,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Torren Management LLC acquired a new position in Watsco during the fourth quarter worth $26,000. Bayban acquired a new stake in Watsco in the 4th quarter valued at $29,000. Bamco Inc. NY bought a new stake in Watsco during the 4th quarter worth about $35,000. Laurel Wealth Advisors LLC bought a new stake in Watsco during the 4th quarter worth about $37,000. Finally, Quarry LP acquired a new position in shares of Watsco during the 4th quarter worth about $37,000. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Watsco Stock Performance

Shares of WSO opened at $319.60 on Thursday. The firm’s 50-day simple moving average is $382.11 and its 200 day simple moving average is $393.38. The firm has a market cap of $12.99 billion, a P/E ratio of 26.52 and a beta of 1.02. Watsco, Inc. has a 52 week low of $307.18 and a 52 week high of $459.99.

Watsco (NYSE:WSO) last issued its quarterly 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). The company had revenue of $2.10 billion during the quarter, compared to the consensus estimate of $2.14 billion. Watsco had a net margin of 6.85% and a return on equity of 15.31%. The company’s quarterly revenue was up 2.1% on a year-over-year basis. During the same quarter last year, the firm posted $4.52 earnings per share. As a group, equities analysts forecast that Watsco, Inc. will post 12.9 earnings per share for the current year.

Watsco Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 16th will be paid a dividend of $3.30 per share. The ex-dividend date of this dividend is Thursday, July 16th. This represents a $13.20 annualized dividend and a yield of 4.1%. Watsco’s dividend payout ratio is currently 109.54%.

Key Headlines Impacting Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Management said the HVAC market is showing further stabilization, while residential equipment sales increased 5%. E-commerce sales growth and operating-efficiency initiatives also supported the quarter. Watsco Second Quarter Results
• Positive Sentiment: Watsco highlighted the acquisition of Jackson Supply, which adds distribution density in key Sunbelt markets. Its debt-free balance sheet and strong cash generation provide capacity for additional growth investments. Watsco Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Analysts remain generally constructive over the longer term. Baird maintained an “outperform” rating while lowering its price target from $460 to $420, reflecting more cautious near-term assumptions. Stock Market Today
• Negative Sentiment: Second-quarter adjusted earnings were $4.00 per share, below consensus estimates of approximately $4.38–$4.41 and down from $4.52 a year earlier. Revenue rose 2.1% year over year to about $2.10 billion but also fell short of the roughly $2.14 billion estimate. Watsco Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: Gross margin declined to 27.5% from 29.3% a year earlier as unusually favorable manufacturer price increases and tariff-related pricing benefits normalized. Commercial sales were also weaker, partly because of the transition to A2L refrigerants in variable-refrigerant-flow systems, raising concerns about near-term profitability and product mix. Why Watsco Stock Is Down Today

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on WSO. DA Davidson started coverage on Watsco in a report on Tuesday, June 16th. They issued a “neutral” rating and a $385.00 price objective for the company. Morgan Stanley increased their price target on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research report on Friday, July 10th. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Stephens boosted 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. Finally, Robert W. Baird cut their price objective on Watsco from $460.00 to $420.00 and set an “outperform” rating for the company in a report on Tuesday. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $404.88.

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.