Intrinsic Edge Capital Management LLC Takes Position in Watsco, Inc. $WSO

Intrinsic Edge Capital Management LLC purchased a new position in shares of Watsco, Inc. (NYSE:WSO) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 40,000 shares of the construction company’s stock, valued at approximately $14,552,000. Watsco makes up approximately 2.4% of Intrinsic Edge Capital Management LLC’s portfolio, making the stock its 2nd biggest position.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Empowered Funds LLC raised its holdings in Watsco by 4.1% during the first quarter. Empowered Funds LLC now owns 5,927 shares of the construction company’s stock worth $3,013,000 after purchasing an additional 232 shares during the last quarter. Bank of Nova Scotia grew its holdings in Watsco by 95.0% in the second quarter. Bank of Nova Scotia now owns 1,297 shares of the construction company’s stock valued at $573,000 after purchasing an additional 632 shares during the last quarter. Sei Investments Co. increased its position in shares of Watsco by 7.6% in the second quarter. Sei Investments Co. now owns 50,442 shares of the construction company’s stock valued at $22,275,000 after buying an additional 3,570 shares in the last quarter. Treasurer of the State of North Carolina increased its position in shares of Watsco by 2.8% in the second quarter. Treasurer of the State of North Carolina now owns 16,258 shares of the construction company’s stock valued at $7,180,000 after buying an additional 437 shares in the last quarter. Finally, Diversify Advisory Services LLC raised its stake in shares of Watsco by 12.0% during the 2nd quarter. Diversify Advisory Services LLC now owns 523 shares of the construction company’s stock worth $221,000 after buying an additional 56 shares during the last quarter. Institutional investors and hedge funds own 89.71% of the company’s stock.

Analyst Ratings Changes

WSO has been the topic of several recent research reports. Robert W. Baird decreased their price objective on shares of Watsco from $460.00 to $420.00 and set an “outperform” rating on the stock in a research report on Tuesday. Stephens raised their target price on shares of Watsco from $475.00 to $485.00 and gave the company an “overweight” rating in a report on Wednesday, April 29th. Morgan Stanley lifted their target price 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. Wall Street Zen raised shares of Watsco from a “sell” rating to a “hold” rating in a report on Saturday, May 2nd. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Watsco in a research report on Friday, June 26th. Two analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $404.88.

Watsco Trading Down 13.0%

Watsco stock opened at $319.60 on Thursday. The stock has a 50-day moving average price of $382.11 and a 200 day moving average price of $393.38. Watsco, Inc. has a 52 week low of $307.18 and a 52 week high of $459.99. The stock has a market cap of $12.99 billion, a PE ratio of 26.52 and a beta of 1.02.

Watsco (NYSE:WSO) last released its earnings results on Wednesday, July 29th. The construction company reported $4.00 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.41 by ($0.41). Watsco had a net margin of 6.85% and a return on equity of 15.31%. The firm had revenue of $2.10 billion during the quarter, compared to analysts’ expectations of $2.14 billion. During the same quarter last year, the company posted $4.52 earnings per share. Watsco’s revenue for the quarter was up 2.1% on a year-over-year basis. On average, equities analysts predict that Watsco, Inc. will post 12.9 EPS for the current year.

Watsco Announces Dividend

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

Key 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

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.