Robert W. Baird Predicts Significant Price Growth for Watsco (NYSE:WSO) Stock

On February 20, 2025, Robert W. Baird raised its target price for Watsco (NYSE:WSO) stock from $540.00 to $560.00, reflecting a positive outlook on the company's performance. The investment firm has assigned an outperform rating to Watsco's stock, signaling confidence in its future growth.

Other research firms have also weighed in on Watsco recently. For instance, Raymond James began its coverage of Watsco on January 17, 2025, giving it a "market perform" rating. Northcoast Research initiated coverage on November 22, 2024, with a "neutral" rating. In total, three analysts have issued hold ratings, while two have rated the stock as a buy. As per MarketBeat.com, the average rating for Watsco is "Hold," with a consensus target price set at $495.00.

Watsco's Stock Performance

Watsco shares opened at $511.11 on the day of the rating change. The company's stock has demonstrated a 50-day moving average of $484.90 and a 200-day moving average of $491.75. With a market capitalization of $20.64 billion, Watsco's price-to-earnings ratio stands at 39.50, with a beta of 0.95. Over the past year, the stock has seen a low of $373.33 and a high of $571.41.

Financial Highlights

In its latest quarterly earnings report, released on February 18, 2025, Watsco reported earnings of $2.37 per share, exceeding analyst estimates of $2.13. The company's return on equity was 17.77%, and it achieved a net profit margin of 6.99%. Additionally, Watsco generated revenues of $1.75 billion in the quarter, surpassing expectations of $1.67 billion. Analysts predict that Watsco will deliver earnings of $13.03 per share in the current fiscal year.

Dividend Information

Watsco has also declared a quarterly dividend, which was paid on January 31, 2025. Shareholders on record as of January 17, 2025, received a dividend of $2.70 per share, reflecting an annualized dividend yield of 2.11%. The ex-dividend date was also January 17, 2025. Currently, the company's dividend payout ratio stands at 81.51%.

Insider Transactions

In related news, Barry S. Logan, an executive vice president, sold 10,998 shares of Watsco stock on December 18, 2024. The shares were sold at an average price of $508.21, amounting to a total value of approximately $5.59 million. Company insiders own 12.86% of the stock.

Institutional Investment Trends

Recent movements among institutional investors show a growing interest in Watsco. For instance, Toronto Dominion Bank increased its holdings by 32.2% in the third quarter, acquiring an additional 1,038 shares. Citizens Financial Group raised its stake by 40.6%, and Larson Financial Group's ownership surged by an impressive 3,571.0%. Furthermore, significant increases in holdings were reported by Sumitomo Mitsui Trust Group and Franklin Resources as well. Overall, institutional investors own about 89.71% of Watsco's stock.

About Watsco

Watsco, Inc. engages in distributing heating, ventilation, air conditioning, and refrigeration equipment along with related supplies throughout the United States and internationally. The company caters to both residential and commercial sectors with a variety of products, including ducted and ductless air conditioning systems and heating units.

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