Kensington Investment Counsel LLC Has $4.87 Million Position in Watsco, Inc. $WSO

Kensington Investment Counsel LLC cut its stake in shares of Watsco, Inc. (NYSE:WSO) by 16.3% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 13,372 shares of the construction company’s stock after selling 2,599 shares during the quarter. Watsco makes up 2.3% of Kensington Investment Counsel LLC’s portfolio, making the stock its 15th largest holding. Kensington Investment Counsel LLC’s holdings in Watsco were worth $4,865,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in WSO. Torren Management LLC bought a new stake in Watsco during the 4th quarter worth approximately $26,000. Bayban acquired a new position in Watsco in the fourth quarter worth $29,000. Bamco Inc. NY acquired a new position in Watsco in the fourth quarter worth $35,000. Laurel Wealth Advisors LLC bought a new stake in shares of Watsco during the fourth quarter worth $37,000. Finally, Quarry LP acquired a new stake in shares of Watsco in the fourth quarter valued at $37,000. Institutional investors and hedge funds own 89.71% of the company’s stock.

More Watsco News

Here are the key news stories impacting Watsco this week:

• Positive Sentiment: Management said the HVAC market is showing further stabilization, while residential equipment sales increased 5%. E-commerce sales growth and operating-efficiency initiatives also supported the quarter. Watsco Second Quarter Results
• Positive Sentiment: Watsco highlighted the acquisition of Jackson Supply, which adds distribution density in key Sunbelt markets. Its debt-free balance sheet and strong cash generation provide capacity for additional growth investments. Watsco Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Analysts remain generally constructive over the longer term. Baird maintained an “outperform” rating while lowering its price target from $460 to $420, reflecting more cautious near-term assumptions. Stock Market Today
• Negative Sentiment: Second-quarter adjusted earnings were $4.00 per share, below consensus estimates of approximately $4.38–$4.41 and down from $4.52 a year earlier. Revenue rose 2.1% year over year to about $2.10 billion but also fell short of the roughly $2.14 billion estimate. Watsco Q2 Earnings and Revenues Lag Estimates
• Negative Sentiment: Gross margin declined to 27.5% from 29.3% a year earlier as unusually favorable manufacturer price increases and tariff-related pricing benefits normalized. Commercial sales were also weaker, partly because of the transition to A2L refrigerants in variable-refrigerant-flow systems, raising concerns about near-term profitability and product mix. Why Watsco Stock Is Down Today

Analyst Ratings Changes

Several brokerages recently issued reports on WSO. DA Davidson began coverage on shares of Watsco in a research report on Tuesday, June 16th. They set a “neutral” rating and a $385.00 price target on the stock. Morgan Stanley boosted their price objective on shares of Watsco from $370.00 to $405.00 and gave the stock an “equal weight” rating in a research report on Friday, July 10th. Stephens lifted their target price on Watsco from $475.00 to $485.00 and gave the company an “overweight” rating in a research note on Wednesday, April 29th. Wall Street Zen raised Watsco from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Finally, Robert W. Baird lowered their price target on shares of Watsco from $460.00 to $420.00 and set an “outperform” rating for the company in a research report on Tuesday. Two research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $404.88.

Watsco Stock Performance

Shares of NYSE:WSO opened at $319.60 on Thursday. The company has a 50 day moving average price of $382.11 and a two-hundred day moving average price of $393.38. The company has a market capitalization of $12.99 billion, a PE ratio of 26.52 and a beta of 1.02. Watsco, Inc. has a 52 week low of $307.18 and a 52 week high of $459.99.

Watsco (NYSE:WSO) last announced 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 firm had revenue of $2.10 billion during the quarter, compared to analyst estimates of $2.14 billion. Watsco had a net margin of 6.85% and a return on equity of 15.31%. Watsco’s quarterly revenue was up 2.1% on a year-over-year basis. During the same period last year, the firm earned $4.52 EPS. On average, sell-side analysts forecast that Watsco, Inc. will post 12.9 earnings per share for the current year.

Watsco Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Thursday, July 16th will be issued a dividend of $3.30 per share. This represents a $13.20 dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Thursday, July 16th. Watsco’s dividend payout ratio (DPR) is presently 109.54%.

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.