Watts Water Technologies (NYSE:WTS) Releases Earnings Results

Key Points

• Watts Water Technologies beat quarterly expectations: EPS was $3.40 versus the $3.14 consensus, while revenue of $728 million exceeded the $692.57 million estimate.
• Shares fell $6.10 to $354.23 on Wednesday despite the earnings beat.
• The company announced a quarterly dividend of $0.63 per share, equivalent to $2.52 annually and a 0.7% yield; analysts’ consensus rating was “Moderate Buy.”

Watts Water Technologies (NYSE:WTS - Get Free Report) issued its earnings results on Wednesday. The technology company reported $3.40 EPS for the quarter, topping the consensus estimate of $3.14 by $0.26, FiscalAI reports. Watts Water Technologies had a return on equity of 19.16% and a net margin of 14.34%. The firm had revenue of $728.00 million during the quarter, compared to the consensus estimate of $692.57 million.

Watts Water Technologies Price Performance

NYSE WTS traded down $6.10 on Wednesday, reaching $354.23. 357,420 shares of the company's stock traded hands, compared to its average volume of 262,849. The stock has a 50-day simple moving average of $356.88 and a 200 day simple moving average of $331.73. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.66 and a quick ratio of 1.60. Watts Water Technologies has a 12 month low of $260.00 and a 12 month high of $394.54. The stock has a market cap of $11.82 billion, a PE ratio of 30.94, a P/E/G ratio of 3.45 and a beta of 1.13.

Watts Water Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be paid a $0.63 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $2.52 annualized dividend and a yield of 0.7%. Watts Water Technologies's dividend payout ratio is currently 22.01%.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $417.00 target price on shares of Watts Water Technologies in a report on Wednesday, October 14th. Barclays lifted their price objective on shares of Watts Water Technologies from $414.00 to $425.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. The Goldman Sachs Group reissued a "neutral" rating and set a $374.00 price target on shares of Watts Water Technologies in a research report on Friday, August 7th. Robert W. Baird set a $405.00 price objective on shares of Watts Water Technologies in a research note on Friday, August 7th. Finally, KeyCorp lifted their target price on shares of Watts Water Technologies from $380.00 to $400.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Watts Water Technologies presently has a consensus rating of "Moderate Buy" and a consensus target price of $371.90.

Insider Buying and Selling at Watts Water Technologies

In other news, Director Joseph T. Noonan sold 3,650 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $353.72, for a total value of $1,291,078.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Elie Melhem sold 1,096 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $359.55, for a total transaction of $394,066.80. Following the transaction, the insider owned 7,867 shares in the company, valued at approximately $2,828,579.85. This trade represents a 12.23% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.00% of the stock is currently owned by corporate insiders.

Watts Water Technologies Company Profile

Watts Water Technologies, Inc designs, manufactures and sells products that manage the safety, efficiency, quality and flow of water in plumbing, heating and cooling systems. Its products serve residential, commercial, industrial and institutional applications, including new construction, renovation and infrastructure projects.

The company's offerings include backflow prevention and water pressure management equipment, valves, regulators, drainage and plumbing products, water conditioning and filtration systems, water heaters, and solutions for hydronic heating and cooling.

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