First Trust Advisors LP Has $42.19 Million Stock Position in Watsco, Inc. $WSO

First Trust Advisors LP lessened its stake in shares of Watsco, Inc. (NYSE:WSO) by 2.5% during the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 104,347 shares of the construction company’s stock after selling 2,682 shares during the period. First Trust Advisors LP owned about 0.26% of Watsco worth $42,188,000 as of its most recent filing with the SEC.

Other large investors have also recently bought and sold shares of the company. Truist Financial Corp raised its stake in shares of Watsco by 89.2% during the 3rd quarter. Truist Financial Corp now owns 37,808 shares of the construction company’s stock worth $15,286,000 after purchasing an additional 17,820 shares in the last quarter. Donaldson Capital Management LLC grew its stake in shares of Watsco by 47.7% in the third quarter. Donaldson Capital Management LLC now owns 124,789 shares of the construction company’s stock valued at $50,452,000 after buying an additional 40,326 shares in the last quarter. Federated Hermes Inc. increased its holdings in Watsco by 577.9% during the third quarter. Federated Hermes Inc. now owns 19,957 shares of the construction company’s stock worth $8,069,000 after buying an additional 17,013 shares during the last quarter. Allianz Asset Management GmbH increased its holdings in Watsco by 237.5% during the third quarter. Allianz Asset Management GmbH now owns 5,629 shares of the construction company’s stock worth $2,276,000 after buying an additional 3,961 shares during the last quarter. Finally, Atlantic Union Bankshares Corp bought a new stake in Watsco during the third quarter worth $1,392,000. 89.71% of the stock is owned by institutional investors and hedge funds.

Watsco News Roundup

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks raised some late‑stage estimates — notably Q3 and Q4 2027 — signaling expected recovery in the back half of 2027. This suggests analysts see a rebound beyond the near term. Zacks raises Q3/Q4 2027 estimates
• Positive Sentiment: Zacks also nudged Q4 2026 slightly higher and published a FY2028 estimate of $15.63, implying stronger medium‑term earnings potential if demand recovers. Zacks issues FY2028 outlook
• Neutral Sentiment: Zacks maintains a “Hold” rating on WSO; its detailed quarterly schedules remain a mix of cuts and raises, and the firm’s full‑year consensus (marketwide) still sits near $14.62 EPS. Investors should view the note as model tuning rather than a change in recommendation. Zacks Hold rating and consensus
• Negative Sentiment: Key near‑term downgrades: Zacks cut FY2026 to $12.38 from $12.93 and trimmed several 2026 quarter estimates (Q1–Q3), reflecting weaker near‑term demand and continuing pressure after Watsco’s recent quarterly revenue and EPS miss. These downward revisions likely explain the share weakness. Zacks lowers FY2026 and 2026 quarterly estimates
• Negative Sentiment: Zacks also trimmed parts of the 2027 outlook (Q1 and Q2 2027 and FY2027 modestly reduced to $13.83), signaling slower recovery timing than some investors may have expected. That dampens near‑term earnings visibility versus prior expectations. Zacks trims 2027 estimates

Watsco Price Performance

Shares of Watsco stock opened at $364.09 on Friday. The business has a fifty day simple moving average of $393.30 and a two-hundred day simple moving average of $376.93. Watsco, Inc. has a 1 year low of $323.05 and a 1 year high of $521.70. The company has a market capitalization of $14.77 billion, a price-to-earnings ratio of 30.06 and a beta of 1.03.

Watsco (NYSE:WSO) last released its quarterly earnings data on Tuesday, February 17th. The construction company reported $1.68 EPS for the quarter, missing the consensus estimate of $1.94 by ($0.26). The company had revenue of $1.58 billion during the quarter, compared to analyst estimates of $1.62 billion. Watsco had a net margin of 6.87% and a return on equity of 15.49%. Watsco’s revenue for the quarter was down 9.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.37 earnings per share. As a group, equities analysts anticipate that Watsco, Inc. will post 14.62 earnings per share for the current fiscal year.

Watsco Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, January 30th. Investors of record on Friday, January 16th were paid a $3.00 dividend. The ex-dividend date was Friday, January 16th. This represents a $12.00 dividend on an annualized basis and a yield of 3.3%. Watsco’s dividend payout ratio is 99.09%.

Analysts Set New Price Targets

A number of analysts have commented on WSO shares. Zacks Research upgraded shares of Watsco from a “strong sell” rating to a “hold” rating in a research note on Wednesday, February 25th. Wolfe Research set a $349.00 price objective on shares of Watsco in a research note on Tuesday, December 9th. Morgan Stanley dropped their target price on shares of Watsco from $460.00 to $370.00 and set an “equal weight” rating on the stock in a report on Wednesday, January 14th. Mizuho set a $425.00 target price on shares of Watsco in a research note on Wednesday, February 18th. Finally, JPMorgan Chase & Co. lifted their price target on Watsco from $370.00 to $400.00 and gave the stock a “neutral” rating in a report on Thursday, February 19th. One investment analyst has rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $409.00.

Watsco Company 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.