Hsbc Holdings PLC Has $8.56 Million Stake in Watts Water Technologies, Inc. $WTS

Key Points

• Hsbc Holdings PLC cut its stake in Watts Water Technologies by 29.7% in the fourth quarter, leaving it with 31,005 shares valued at about $8.56 million. Even so, institutional investors still own 95.02% of the company.
• Watts Water Technologies reported strong quarterly results, posting $3.04 EPS versus the $2.72 estimate and revenue of $677.3 million, up 21.4% year over year. The company also paid a quarterly dividend of $0.63 per share, equal to a 0.7% annual yield.
• Shares were trading lower on the day, while Wall Street sentiment remains mixed: analysts currently have an overall Hold rating with an average price target of $329.44. The stock has also seen insider selling, including recent sales by Director Michael J. Dubose and insider Elie Melhem.

Hsbc Holdings PLC lowered its holdings in shares of Watts Water Technologies, Inc. (NYSE:WTS - Free Report) by 29.7% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 31,005 shares of the technology company's stock after selling 13,109 shares during the quarter. Hsbc Holdings PLC owned 0.09% of Watts Water Technologies worth $8,563,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the business. Groupama Asset Managment increased its stake in Watts Water Technologies by 14.9% during the 4th quarter. Groupama Asset Managment now owns 76,674 shares of the technology company's stock worth $21,164,000 after purchasing an additional 9,934 shares in the last quarter. Pacer Advisors Inc. raised its holdings in Watts Water Technologies by 124.4% during the 4th quarter. Pacer Advisors Inc. now owns 8,174 shares of the technology company's stock worth $2,256,000 after buying an additional 4,531 shares during the period. Corient Private Wealth LLC lifted its stake in Watts Water Technologies by 36.1% in the fourth quarter. Corient Private Wealth LLC now owns 6,140 shares of the technology company's stock valued at $1,695,000 after buying an additional 1,627 shares in the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in Watts Water Technologies by 16.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 2,896 shares of the technology company's stock valued at $799,000 after buying an additional 407 shares in the last quarter. Finally, Vident Advisory LLC boosted its holdings in shares of Watts Water Technologies by 45.2% in the fourth quarter. Vident Advisory LLC now owns 3,008 shares of the technology company's stock valued at $830,000 after buying an additional 936 shares during the period. Institutional investors own 95.02% of the company's stock.

Insider Transactions at Watts Water Technologies

In related news, Director Michael J. Dubose sold 398 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $309.63, for a total transaction of $123,232.74. Following the transaction, the director directly owned 1,814 shares in the company, valued at $561,668.82. The trade was a 17.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Elie Melhem sold 2,257 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $301.00, for a total value of $679,357.00. Following the completion of the sale, the insider owned 8,963 shares of the company's stock, valued at $2,697,863. This represents a 20.12% decrease in their position. The SEC filing for this sale provides additional information. 1.00% of the stock is owned by company insiders.

Watts Water Technologies Trading Down 4.3%

Watts Water Technologies stock opened at $358.99 on Friday. Watts Water Technologies, Inc. has a 52 week low of $242.77 and a 52 week high of $375.89. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.62 and a current ratio of 2.72. The firm has a market capitalization of $11.99 billion, a PE ratio of 32.84, a PEG ratio of 3.33 and a beta of 1.19. The business's 50-day simple moving average is $313.19 and its 200-day simple moving average is $303.91.

Watts Water Technologies (NYSE:WTS - Get Free Report) last released its earnings results on Wednesday, May 6th. The technology company reported $3.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.72 by $0.32. Watts Water Technologies had a return on equity of 18.92% and a net margin of 14.32%.The firm had revenue of $677.30 million for the quarter, compared to analyst estimates of $638.13 million. During the same quarter last year, the firm posted $2.37 EPS. The company's revenue was up 21.4% on a year-over-year basis. Equities research analysts forecast that Watts Water Technologies, Inc. will post 11.9 earnings per share for the current year.

Watts Water Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a dividend of $0.63 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $2.52 dividend on an annualized basis and a yield of 0.7%. Watts Water Technologies's dividend payout ratio (DPR) is 23.06%.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on WTS. Royal Bank Of Canada increased their price objective on shares of Watts Water Technologies from $318.00 to $323.00 and gave the stock a "sector perform" rating in a research report on Friday, May 8th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $358.00 price target on shares of Watts Water Technologies in a report on Friday, May 8th. Wall Street Zen cut shares of Watts Water Technologies from a "strong-buy" rating to a "buy" rating in a report on Saturday, February 28th. Barclays cut their price target on shares of Watts Water Technologies from $323.00 to $317.00 and set an "equal weight" rating on the stock in a research report on Monday, May 11th. Finally, Stifel Nicolaus set a $379.00 price objective on shares of Watts Water Technologies in a research note on Friday, May 8th. Four analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $329.44.

Watts Water Technologies Profile

Watts Water Technologies, Inc is a global manufacturer and distributor of flow control products and solutions designed to ensure the safe, efficient delivery and use of water. Founded in 1874 and headquartered in North Andover, Massachusetts, the company has built a reputation for engineering innovation in residential, commercial and industrial plumbing, heating, cooling and water treatment systems. Watts operates through a comprehensive portfolio of brands and product lines that address application-specific requirements in water safety, pressure regulation, flow control and filtration.

The company's product offerings span backflow preventers, pressure reducing valves, relief valves and steam traps, as well as hydronic balancing and temperature control devices for heating systems.

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