Commerce Bank Purchases Shares of 23,693 Watsco, Inc. $WSO

Commerce Bank acquired a new position in shares of Watsco, Inc. (NYSE:WSO) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 23,693 shares of the construction company’s stock, valued at approximately $9,874,000. Commerce Bank owned about 0.06% of Watsco at the end of the most recent quarter.

A number of other hedge funds have also recently made changes to their positions in the business. CWM LLC increased its position in shares of Watsco by 3.8% during the fourth quarter. CWM LLC now owns 710 shares of the construction company’s stock worth $239,000 after acquiring an additional 26 shares in the last quarter. Assetmark Inc. lifted its position in Watsco by 2.7% in the 1st quarter. Assetmark Inc. now owns 1,115 shares of the construction company’s stock valued at $406,000 after acquiring an additional 29 shares in the last quarter. Northwestern Mutual Investment Management Company LLC boosted its stake in Watsco by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 7,814 shares of the construction company’s stock valued at $2,633,000 after purchasing an additional 34 shares during the last quarter. Modern Wealth Management LLC boosted its stake in Watsco by 5.2% during the 2nd quarter. Modern Wealth Management LLC now owns 783 shares of the construction company’s stock valued at $346,000 after purchasing an additional 39 shares during the last quarter. Finally, Bessemer Group Inc. increased its holdings in Watsco by 10.5% during the 1st quarter. Bessemer Group Inc. now owns 496 shares of the construction company’s stock worth $181,000 after purchasing an additional 47 shares in the last quarter. 89.71% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks raised its EPS forecast for Q1 2027 to $1.93 from $1.92 and Q1 2028 to $2.05 from $1.93. Its FY2028 estimate also increased to $15.26 from $14.93, suggesting analysts still see longer-term earnings growth potential. Watsco stock information
• Neutral Sentiment: The firm maintained estimates of $13.53 EPS for FY2027 and $15.26 for FY2028, while its current full-year consensus reference stands at approximately $12.43 per share. The revisions indicate a mixed outlook rather than a broad change in the long-term investment thesis.
• Negative Sentiment: Zacks cut its FY2026 EPS forecast to $12.21 from $12.56 and lowered Q3 2026 EPS to $4.21 from $4.29 and Q4 2026 EPS to $2.13 from $2.15. These reductions point to softer near-term earnings expectations.
• Negative Sentiment: Estimates were also reduced for Q2 2027 to $4.61 from $4.75, Q3 2027 to $4.65 from $4.69, and FY2027 to $13.53 from $13.70. The repeated cuts may weigh on sentiment, particularly because Watsco already trades at a meaningful earnings multiple despite its recent earnings miss.

Watsco Stock Performance

Shares of WSO stock opened at $311.57 on Monday. The company has a market capitalization of $12.85 billion, a price-to-earnings ratio of 27.02 and a beta of 1.05. Watsco, Inc. has a 52-week low of $300.66 and a 52-week high of $459.00. The company has a 50-day simple moving average of $363.17 and a two-hundred day simple moving average of $385.72.

Watsco (NYSE:WSO) last posted its earnings results on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a return on equity of 14.40% and a net margin of 6.53%.The firm had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same period in the prior year, the business earned $4.52 EPS. Watsco’s quarterly revenue was up 2.1% compared to the same quarter last year. On average, sell-side analysts forecast that Watsco, Inc. will post 12.21 EPS for the current fiscal year.

Watsco Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Thursday, July 16th were given a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. The ex-dividend date of this dividend was Thursday, July 16th. Watsco’s dividend payout ratio (DPR) is presently 114.48%.

Analyst Ratings Changes

Several analysts have recently commented on WSO shares. Stephens reissued an “overweight” rating and issued a $485.00 price objective on shares of Watsco in a research note on Monday, August 17th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research report on Friday, June 26th. Robert W. Baird set a $400.00 price target on Watsco in a report on Thursday, July 30th. 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. Finally, DA Davidson dropped their price objective on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat.com, Watsco presently has an average rating of “Hold” and an average target price of $395.50.

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.