Watsco (NYSE:WSO – Get Free Report) was downgraded by equities researchers at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Tuesday, Zacks reports. Zacks Research also issued estimates for Watsco’s Q2 2027 earnings at $4.58 EPS, Q3 2027 earnings at $4.58 EPS, Q4 2027 earnings at $2.16 EPS and FY2027 earnings at $13.26 EPS.
Several other analysts have also recently weighed in on WSO. Morgan Stanley raised their target price on shares of Watsco from $370.00 to $405.00 and gave the company an “equal weight” rating in a report on Friday, July 10th. Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a report on Friday, June 26th. Robert W. Baird set a $400.00 price objective on shares of Watsco in a research report on Thursday, July 30th. Stephens restated an “overweight” rating and issued a $485.00 price objective on shares of Watsco in a report on Monday, August 17th. Finally, DA Davidson decreased their price objective on shares of Watsco from $385.00 to $330.00 and set a “neutral” rating for the company in a research report on Thursday, July 30th. Two investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Watsco has a consensus rating of “Hold” and an average target price of $395.50.
View Our Latest Stock Report on Watsco
Watsco Price Performance
Watsco (NYSE:WSO – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.41 by ($0.41). Watsco had a net margin of 6.53% and a return on equity of 14.40%. The company had revenue of $2.10 billion during the quarter, compared to analysts’ expectations of $2.14 billion. During the same quarter in the previous year, the business posted $4.52 EPS. The business’s quarterly revenue was up 2.1% compared to the same quarter last year. Equities research analysts anticipate that Watsco will post 12.21 earnings per share for the current fiscal year.
Institutional Trading of Watsco
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Capital International Investors lifted its position in shares of Watsco by 103.1% during the 4th quarter. Capital International Investors now owns 4,642,893 shares of the construction company’s stock worth $1,564,423,000 after buying an additional 2,356,998 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Watsco by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 638,014 shares of the construction company’s stock valued at $214,373,000 after buying an additional 5,176 shares during the last quarter. Markel Group Inc. raised its stake in Watsco by 0.8% during the 1st quarter. Markel Group Inc. now owns 582,169 shares of the construction company’s stock worth $211,787,000 after acquiring an additional 4,500 shares in the last quarter. Captrust Financial Advisors raised its stake in Watsco by 1.5% during the 4th quarter. Captrust Financial Advisors now owns 396,514 shares of the construction company’s stock worth $133,605,000 after acquiring an additional 6,034 shares in the last quarter. Finally, Norges Bank purchased a new stake in Watsco in the fourth quarter valued at $110,853,000. Institutional investors and hedge funds own 89.71% of the company’s stock.
About Watsco
Watsco, Inc is a distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment and related products. The company supplies residential and commercial contractors with air conditioners, furnaces, heat pumps, refrigeration systems, ductwork, thermostats, controls, tools, replacement parts and other installation supplies.
Through its distribution network and digital sales platforms, Watsco serves HVAC/R contractors, dealers and other customers primarily across the United States, as well as in Canada and Puerto Rico.
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