Daiichi Life Insurance Co. Ltd. Takes $1.30 Million Position in Watsco, Inc. $WSO

Daiichi Life Insurance Co. Ltd. acquired a new position in Watsco, Inc. (NYSE:WSO) during the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 3,131 shares of the construction company’s stock, valued at approximately $1,305,000.

Other hedge funds have also recently bought and sold shares of the company. Commerce Bank bought a new position in Watsco in the 2nd quarter worth about $9,874,000. Northwestern Mutual Wealth Management Co. bought a new position in Watsco in the 2nd quarter worth approximately $376,000. Findlay Park Partners LLP bought a new position in Watsco in the 2nd quarter worth approximately $78,695,000. Farringdon Capital Ltd. acquired a new stake in Watsco in the 2nd quarter valued at approximately $390,000. Finally, Sumitomo Life Insurance Co. acquired a new stake in Watsco in the 2nd quarter valued at approximately $207,000. 89.71% of the stock is currently owned by institutional investors.

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 Stock Performance

Shares of NYSE:WSO opened at $311.57 on Monday. 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, Inc. has a 1-year low of $300.66 and a 1-year high of $459.00. The company has a 50 day moving average price of $363.17 and a 200 day moving average price of $385.72.

Watsco (NYSE:WSO) last posted its quarterly earnings data 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 analysts’ expectations of $2.14 billion. During the same period in the prior year, the company posted $4.52 earnings per share. Watsco’s quarterly revenue was up 2.1% compared to the same quarter last year. On average, sell-side analysts expect that Watsco, Inc. will post 12.21 EPS for the current fiscal year.

Watsco Announces Dividend

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

Analysts Set New Price Targets

A number of research analysts have issued reports on WSO shares. Stephens reiterated an “overweight” rating and set a $485.00 price target on shares of Watsco in a research report on Monday, August 17th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Watsco in a research note on Friday, June 26th. 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 report on Thursday, July 30th. Morgan Stanley upped their target price on Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a research report on Friday, July 10th. Finally, Wall Street Zen upgraded Watsco from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Two equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Watsco currently has a consensus rating of “Hold” and an average price target of $395.50.

About Watsco

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.