Landscape Capital Management L.L.C. Makes New Investment in Watsco, Inc. $WSO

Landscape Capital Management L.L.C. purchased a new stake in shares of Watsco, Inc. (NYSE:WSO) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 5,463 shares of the construction company’s stock, valued at approximately $2,277,000.

Several other large investors have also recently made changes to their positions in the business. Torren Management LLC bought a new stake in shares of Watsco in the 4th quarter worth approximately $26,000. Bayban bought a new position in shares of Watsco during the 4th quarter valued at $29,000. Bamco Inc. NY bought a new position in shares of Watsco during the 4th quarter valued at $35,000. Laurel Wealth Advisors LLC purchased a new position in Watsco in the 4th quarter worth $37,000. Finally, Quarry LP purchased a new position in Watsco in the 4th quarter worth $37,000. 89.71% of the stock is owned by hedge funds and other institutional investors.

Watsco Stock Performance

Shares of Watsco stock opened at $311.57 on Friday. Watsco, Inc. has a 52-week low of $300.66 and a 52-week high of $459.00. The company’s 50 day moving average price is $363.17 and its 200-day moving average price is $385.73. The stock has a market capitalization of $12.85 billion, a price-to-earnings ratio of 27.02 and a beta of 1.05.

Watsco (NYSE:WSO) last posted its quarterly earnings results 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 6.53% and a return on equity of 14.40%. The firm had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same quarter in the prior year, the company earned $4.52 earnings per share. The company’s quarterly revenue was up 2.1% compared to the same quarter last year. As a group, equities research analysts forecast that Watsco, Inc. will post 12.21 earnings per share for the current fiscal year.

Watsco Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Thursday, July 16th were given a $3.30 dividend. The ex-dividend date was Thursday, July 16th. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.2%. Watsco’s payout ratio is presently 114.48%.

Watsco News Roundup

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Zacks raised its EPS forecast for Q1 2027 to $1.93 from $1.92 and Q1 2028 to $2.05 from $1.93. Its FY2028 estimate also increased to $15.26 from $14.93, suggesting analysts still see longer-term earnings growth potential. Watsco stock information
• Neutral Sentiment: The firm maintained estimates of $13.53 EPS for FY2027 and $15.26 for FY2028, while its current full-year consensus reference stands at approximately $12.43 per share. The revisions indicate a mixed outlook rather than a broad change in the long-term investment thesis.
• Negative Sentiment: Zacks cut its FY2026 EPS forecast to $12.21 from $12.56 and lowered Q3 2026 EPS to $4.21 from $4.29 and Q4 2026 EPS to $2.13 from $2.15. These reductions point to softer near-term earnings expectations.
• Negative Sentiment: Estimates were also reduced for Q2 2027 to $4.61 from $4.75, Q3 2027 to $4.65 from $4.69, and FY2027 to $13.53 from $13.70. The repeated cuts may weigh on sentiment, particularly because Watsco already trades at a meaningful earnings multiple despite its recent earnings miss.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Stephens reissued an “overweight” rating and issued a $485.00 price target on shares of Watsco in a research note on Monday, August 17th. DA Davidson reduced their price objective on Watsco from $385.00 to $330.00 and set a “neutral” rating on the stock in a research note on Thursday, July 30th. Robert W. Baird set a $400.00 price objective on Watsco in a report on Thursday, July 30th. Morgan Stanley boosted 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, Weiss Ratings reissued a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. Two equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Watsco presently has an average rating of “Hold” and an average price target of $395.50.

Watsco 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.