Why Watsco (WSO) Stock Is Down Today

Watsco (WSO) is down 14.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely catalyst is a mixed second-quarter earnings report that missed Wall Street expectations on both profit and revenue. Even though sales grew and residential HVAC equipment demand improved, investors appear focused on weaker profitability, especially a year-over-year gross margin decline tied to more normal pricing conditions in 2026.

Details:

Second-quarter EPS was $4.00, below the $4.41 consensus, while revenue of about $2.10 billion also came in below the roughly $2.14 billion expectation.

Gross margin fell to 27.5% from 29.3% a year earlier, as management said last year benefited from unusually strong OEM price increases and tariff-related pricing effects.

Management described the market as stabilizing, and residential HVAC equipment sales rose 5%, but that improvement was not enough to offset investor concern about margin pressure and the earnings miss.

The company also said commercial sales were weaker, with softness tied in part to the VRF transition to A2L refrigerants, which may have added to caution around near-term mix and profitability.

Sources:

GlobeNewswire, MarketBeat, SEC

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$WSO Hedge Fund Activity

We have seen 326 institutional investors add shares of $WSO stock to their portfolio, and 339 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

CAPITAL RESEARCH GLOBAL INVESTORS added 1,898,603 shares (+inf%) to their portfolio in Q1 2026, for an estimated $690,692,785
CAPITAL INTERNATIONAL INVESTORS removed 1,165,662 shares (-25.1%) from their portfolio in Q1 2026, for an estimated $424,056,178
BLACKROCK, INC. added 404,775 shares (+11.0%) to their portfolio in Q1 2026, for an estimated $147,253,097
CORIENT PRIVATE WEALTH LLC removed 328,966 shares (-69.7%) from their portfolio in Q1 2026, for an estimated $119,674,541
GOLDMAN SACHS GROUP INC added 255,909 shares (+84.0%) to their portfolio in Q1 2026, for an estimated $93,097,135
NEUBERGER BERMAN GROUP LLC removed 252,363 shares (-65.9%) from their portfolio in Q1 2026, for an estimated $91,807,135
CHARLES SCHWAB INVESTMENT MANAGEMENT INC removed 219,564 shares (-14.1%) from their portfolio in Q1 2026, for an estimated $79,875,187

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$WSO Price Targets

Multiple analysts have issued price targets for $WSO recently. We have seen 3 analysts offer price targets for $WSO in the last 6 months, with a median target of $400.0.

Here are some recent targets:

Chris Dankert from DA Davidson set a target price of $385.0 on 06/16/2026
Tommy Moll from Stephens & Co. set a target price of $485.0 on 04/29/2026
Stephen Tusa from JP Morgan set a target price of $400.0 on 02/19/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.