Mitsubishi UFJ Asset Management Co. Ltd. Acquires Shares of 40,371 Watsco, Inc. $WSO

Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Watsco, Inc. (NYSE:WSO) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 40,371 shares of the construction company’s stock, valued at approximately $16,824,000. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.10% of Watsco at the end of the most recent quarter.

Other hedge funds and other institutional investors have also modified their holdings of the company. Torren Management LLC bought a new stake in Watsco in the fourth quarter valued at $26,000. Bayban bought a new position in shares of Watsco during the fourth quarter valued at $29,000. Bamco Inc. NY bought a new position in shares of Watsco during the fourth quarter valued at $35,000. Laurel Wealth Advisors LLC acquired a new stake in shares of Watsco in the 4th quarter valued at $37,000. Finally, Quarry LP acquired a new stake in shares of Watsco in the 4th quarter valued at $37,000. Institutional investors own 89.71% of the company’s stock.

Analyst Ratings Changes

WSO has been the topic of several analyst reports. Stephens reaffirmed an “overweight” rating and issued a $485.00 target price on shares of Watsco in a report on Monday. DA Davidson reduced their price target on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Morgan Stanley upped their price objective on shares of Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a research note on Friday, July 10th. Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Finally, Robert W. Baird set a $400.00 target price on shares of Watsco in a research note on Thursday, July 30th. Two analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $395.50.

Watsco Stock Performance

Shares of WSO stock opened at $314.48 on Friday. Watsco, Inc. has a 52 week low of $300.66 and a 52 week high of $459.00. The stock has a market capitalization of $12.97 billion, a PE ratio of 27.27 and a beta of 1.05. The stock’s fifty day moving average is $364.54 and its 200-day moving average is $386.25.

Watsco (NYSE:WSO) last released its quarterly earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). The business had revenue of $2.10 billion during the quarter, compared to the consensus estimate of $2.14 billion. Watsco had a net margin of 6.53% and a return on equity of 14.40%. The business’s quarterly revenue was up 2.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $4.52 earnings per share. As a group, analysts forecast that Watsco, Inc. will post 12.38 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Thursday, July 16th were paid a $3.30 dividend. The ex-dividend date of this dividend was Thursday, July 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. Watsco’s payout ratio is currently 114.48%.

More Watsco News

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks Research raised its FY2028 EPS forecast to $15.26 from $14.93, suggesting stronger long-term earnings potential. Separately, Stephens reaffirmed an Overweight rating on Watsco. Stephens Reaffirms Overweight Rating for Watsco
• Neutral Sentiment: The analyst revisions were mixed: Zacks increased estimates for Q1 2027 and Q1 2028, but maintained its FY2027 EPS forecast at $13.53 and FY2028 forecast at $15.26. The current full-year consensus remains $12.43 per share.
• Negative Sentiment: Zacks lowered its forecasts for Q3 2026 EPS to $4.21 from $4.29, Q4 2026 to $2.13 from $2.15, FY2026 to $12.21 from $12.56, Q2 2027 to $4.61 from $4.75, Q3 2027 to $4.65 from $4.69, Q4 2027 to $2.33 from $2.34, and FY2027 to $13.53 from $13.70. The broad downward revisions indicate softer near- and medium-term earnings expectations.
• Negative Sentiment: The latest quarterly results showed weakening profitability: EPS declined from $4.52 a year earlier and missed analysts’ estimates, while revenue increased only 2.1% year over year. Watsco is trading below its 50-day and 200-day moving averages and near its 52-week low, which may amplify investor caution.

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.