Intrinsic Edge Capital Management LLC Takes $14.55 Million Position in Watsco, Inc. $WSO

Intrinsic Edge Capital Management LLC purchased a new position in shares of Watsco, Inc. (NYSE:WSOFree Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 40,000 shares of the construction company’s stock, valued at approximately $14,552,000. Watsco comprises 2.4% of Intrinsic Edge Capital Management LLC’s holdings, making the stock its 2nd biggest holding. Intrinsic Edge Capital Management LLC owned about 0.10% of Watsco as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Comerica Bank raised its position in Watsco by 36.3% in the 4th quarter. Comerica Bank now owns 45,756 shares of the construction company’s stock valued at $15,417,000 after purchasing an additional 12,190 shares during the last quarter. Crown Oak Advisors LLC grew its position in Watsco by 11.7% during the 4th quarter. Crown Oak Advisors LLC now owns 26,721 shares of the construction company’s stock worth $9,004,000 after purchasing an additional 2,800 shares during the last quarter. Vantage Investment Partners LLC grew its position in Watsco by 70.0% during the 4th quarter. Vantage Investment Partners LLC now owns 166,172 shares of the construction company’s stock worth $55,992,000 after purchasing an additional 68,442 shares during the last quarter. Ascent Group LLC increased its stake in Watsco by 1,226.5% in the fourth quarter. Ascent Group LLC now owns 20,362 shares of the construction company’s stock valued at $6,861,000 after purchasing an additional 18,827 shares during the period. Finally, UBS Group AG increased its stake in Watsco by 64.1% in the fourth quarter. UBS Group AG now owns 186,875 shares of the construction company’s stock valued at $62,968,000 after purchasing an additional 72,977 shares during the period. Hedge funds and other institutional investors own 89.71% of the company’s stock.

Watsco Stock Performance

WSO stock opened at $319.60 on Thursday. Watsco, Inc. has a one year low of $307.18 and a one year high of $459.99. The stock has a market capitalization of $12.99 billion, a PE ratio of 26.52 and a beta of 1.02. The company has a fifty day moving average of $382.11 and a 200-day moving average of $393.38.

Watsco (NYSE:WSOGet Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 EPS for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). Watsco had a net margin of 6.85% and a return on equity of 15.31%. The firm had revenue of $2.10 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter in the previous year, the business earned $4.52 EPS. Watsco’s revenue for the quarter was up 2.1% on a year-over-year basis. Equities analysts forecast that Watsco, Inc. will post 12.9 earnings per share for the current fiscal year.

Watsco Dividend Announcement

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

Analyst Ratings Changes

WSO has been the subject of a number of research reports. Robert W. Baird decreased their target price on shares of Watsco from $460.00 to $420.00 and set an “outperform” rating for the company in a research note on Tuesday. Morgan Stanley boosted 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 raised Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. DA Davidson assumed coverage on Watsco in a research report on Tuesday, June 16th. They set a “neutral” rating and a $385.00 price objective for the company. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. Two 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 stock presently has a consensus rating of “Hold” and a consensus target price of $404.88.

Read Our Latest Stock Analysis on WSO

More Watsco News

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

About Watsco

(Free Report)

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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Institutional Ownership by Quarter for Watsco (NYSE:WSO)

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