Watsco, Inc. $WSO Stock: Redmond Asset Management LLC Decreases Holdings

Redmond Asset Management LLC trimmed its holdings in shares of Watsco, Inc. (NYSE:WSO) by 14.1% during the third quarter, Holdings Channel.com reports. The fund owned 29,497 shares of the construction company’s stock after selling 4,841 shares during the quarter. Watsco accounts for about 2.6% of Redmond Asset Management LLC’s holdings, making the stock its 4th biggest position. Redmond Asset Management LLC’s holdings in Watsco were worth $8,928,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Bank of America Corp DE increased its holdings in shares of Watsco by 12.2% during the first quarter. Bank of America Corp DE now owns 239,606 shares of the construction company’s stock worth $87,166,000 after purchasing an additional 26,003 shares during the period. Van ECK Associates Corp raised its position in shares of Watsco by 76.5% in the second quarter. Van ECK Associates Corp now owns 11,875 shares of the construction company’s stock valued at $4,949,000 after buying an additional 5,147 shares in the last quarter. Nykredit A S acquired a new stake in shares of Watsco in the second quarter valued at approximately $5,731,000. Amundi boosted its stake in shares of Watsco by 5.4% in the second quarter. Amundi now owns 50,125 shares of the construction company’s stock valued at $20,889,000 after buying an additional 2,558 shares during the period. Finally, Public Employees Retirement System of Ohio bought a new stake in shares of Watsco in the second quarter valued at approximately $4,459,000. 89.71% of the stock is owned by institutional investors.

Key Headlines Impacting Watsco

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Watsco reported record third-quarter revenue of $2.22 billion, up 7.4% year over year and slightly above expectations. Management cited improving demand, its technology platform and entrepreneurial sales culture as ongoing growth drivers. Watsco Reports Record Third Quarter Sales, Strong Cash Flow and Improving Demand
• Positive Sentiment: Recent acquisitions of Jackson Supply Company and The Granite Group added 107 locations and approximately $730 million in annualized revenue, supporting Watsco’s expansion strategy. Watsco Posts Record Q3 Revenue, Expands Through Acquisitions
• Positive Sentiment: Operating cash flow reached $325 million in the quarter, while nine-month cash flow rose 79% to $303.7 million. Watsco also replaced its prior $600 million revolving facility with a new syndicated credit facility, expanding financial flexibility for acquisitions and operations. Watsco Expands Liquidity with New Syndicated Credit Facility
• Neutral Sentiment: Watsco’s HVAC distribution business benefits from relatively resilient replacement demand, which may provide longer-term support even when broader consumer activity weakens. Watsco and Ferguson Shareholders
• Negative Sentiment: Third-quarter diluted EPS was $3.77, below analyst estimates of roughly $4.10–$4.13 and down from $3.98 a year earlier. The earnings shortfall is the primary reason for the negative market reaction. Watsco Q3 Earnings Miss Estimates
• Negative Sentiment: Profitability weakened: net income declined to $182.8 million, operating income fell 4% to $225.2 million, and gross margin was 26.4%. The results suggest cost or mix pressures offset the benefit of higher revenue. Watsco Stock Slides After Q3 2026 Earnings Misses Estimates

Watsco Trading Down 3.5%

Shares of Watsco stock opened at $290.36 on Thursday. The company has a 50 day moving average of $306.35 and a 200-day moving average of $366.43. Watsco, Inc. has a 1-year low of $277.34 and a 1-year high of $459.00. The company has a market cap of $11.98 billion, a PE ratio of 25.18 and a beta of 1.06.

Watsco (NYSE:WSO) last posted its quarterly earnings results on Tuesday, October 27th. The construction company reported $3.77 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.10 by ($0.33). The firm had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.21 billion. Watsco had a return on equity of 14.40% and a net margin of 6.53%. The business’s revenue was up 7.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.98 EPS. Research analysts forecast that Watsco, Inc. will post 12.19 earnings per share for the current year.

Watsco Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Friday, October 16th will be paid a dividend of $3.30 per share. The ex-dividend date is Friday, October 16th. This represents a $13.20 annualized dividend and a yield of 4.5%. Watsco’s dividend payout ratio is presently 114.48%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on WSO shares. Stephens reissued an “overweight” rating and set a $485.00 price target on shares of Watsco in a research report on Monday, August 17th. Morgan Stanley dropped their price objective on Watsco from $370.00 to $330.00 and set an “equal weight” rating for the company in a report on Monday, October 12th. Zacks Research upgraded Watsco from a “strong sell” rating to a “hold” rating in a research report on Wednesday, October 21st. Robert W. Baird set a $400.00 target price on Watsco in a report on Thursday, July 30th. Finally, Mizuho reduced their target price on Watsco from $350.00 to $325.00 and set a “neutral” rating on the stock in a report on Thursday, October 15th. Two analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, Watsco has a consensus rating of “Hold” and a consensus price target of $373.62.

Watsco Profile

Watsco, Inc (NYSE: WSO) is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and light commercial air-conditioning and heating systems, refrigeration equipment, replacement parts, and other supplies used by contractors and service professionals.

Watsco distributes products from leading HVAC/R manufacturers, including equipment and components such as air conditioners, heat pumps, furnaces, air handlers, thermostats, controls, motors and indoor air-quality products.