Watsco (NYSE:WSO) Shares Gap Down – Here’s Why

Posted by Stanley Muller on Jul 20th, 2026

Watsco, Inc. (NYSE:WSO – Get Free Report)’s share price gapped down prior to trading on Monday . The stock had previously closed at $385.16, but opened at $371.47. Watsco shares last traded at $365.9390, with a volume of 13,257 shares.

Analyst Upgrades and Downgrades

WSO has been the subject of a number of recent research reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research report on Friday, June 26th. Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Stephens raised their target price on shares of Watsco from $475.00 to $485.00 and gave the stock an “overweight” rating in a report on Wednesday, April 29th. Morgan Stanley lifted their target price on Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a research note on Friday, July 10th. Finally, DA Davidson assumed coverage on Watsco in a report on Tuesday, June 16th. They set a “neutral” rating and a $385.00 target price for the company. One investment analyst has rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Watsco currently has a consensus rating of “Hold” and an average price target of $402.71.

Check Out Our Latest Report on Watsco

Watsco Trading Down 0.6%

The stock has a market cap of $15.03 billion, a P/E ratio of 30.68 and a beta of 1.02. The stock’s 50-day moving average is $389.40 and its 200-day moving average is $392.71.

Watsco (NYSE:WSO – Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The construction company reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.73 by $0.14. The company had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.49 billion. Watsco had a net margin of 6.85% and a return on equity of 15.31%. Watsco’s revenue was up .1% on a year-over-year basis. During the same period in the previous year, the firm earned $1.93 EPS. On average, equities analysts forecast that Watsco, Inc. will post 12.81 EPS for the current year.

Watsco Dividend Announcement

The business also recently disclosed 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. This represents a $13.20 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Thursday, July 16th. Watsco’s dividend payout ratio (DPR) is currently 109.54%.

Institutional Investors Weigh In On Watsco

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

Watsco Company Profile

(Get 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.