Deutsche Bank AG Makes New $38.41 Million Investment in Watsco, Inc. $WSO

Deutsche Bank AG purchased a new stake in Watsco, Inc. (NYSE:WSO) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 92,175 shares of the construction company’s stock, valued at approximately $38,412,000.

Other hedge funds also recently modified their holdings of the company. Torren Management LLC acquired a new position in shares of Watsco in the 4th quarter valued at about $26,000. Bayban bought a new position in shares of Watsco during the fourth quarter valued at about $29,000. Bamco Inc. NY purchased a new position in Watsco in the fourth quarter worth $35,000. Laurel Wealth Advisors LLC purchased a new position in shares of Watsco in the 4th quarter worth about $37,000. Finally, Quarry LP purchased a new position in Watsco in the fourth quarter valued at approximately $37,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

Watsco Trading Down 0.9%

Shares of WSO stock opened at $311.57 on Friday. The firm’s 50 day moving average is $363.17 and its 200 day moving average is $385.73. The stock has a market capitalization of $12.85 billion, a P/E ratio of 27.02 and a beta of 1.05. Watsco, Inc. has a 12-month low of $300.66 and a 12-month high of $459.00.

Watsco (NYSE:WSO) last released its quarterly earnings results 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). The company had revenue of $2.10 billion for the quarter, compared to the consensus estimate of $2.14 billion. Watsco had a net margin of 6.53% and a return on equity of 14.40%. The business’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same period in the prior year, the firm posted $4.52 EPS. As a group, equities analysts predict that Watsco, Inc. will post 12.38 earnings per share for the current year.

Watsco Dividend Announcement

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

Analyst Ratings Changes

Several research analysts recently commented on WSO shares. Stephens reaffirmed an “overweight” rating and issued a $485.00 price objective on shares of Watsco in a report on Monday, August 17th. Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Morgan Stanley increased 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. Robert W. Baird set a $400.00 price objective on Watsco in a research note on Thursday, July 30th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a report on Friday, June 26th. Two investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, Watsco has a consensus rating of “Hold” and a consensus target price of $395.50.

Key Headlines Impacting Watsco

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.

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.