Mueller Water Products $MWA Stock: CenterBook Partners LP Grows Position

Key Points

• CenterBook Partners increased its Mueller Water Products stake by 868.3% in the third quarter, ending the period with 76,575 shares valued at about $1.63 million. Institutional investors collectively own 91.68% of the company.
• Mueller reported quarterly EPS of $0.38, slightly above analyst expectations, while revenue of $376.5 million also topped estimates but fell 1.1% year over year. The board authorized up to $300 million in share repurchases, and the quarterly dividend rose to $0.08 per share.
• Analyst sentiment is mixed: the stock carries a consensus “Hold” rating and an average price target of $26.80. Recent ratings included downgrades from Barclays and RBC.

CenterBook Partners LP raised its position in shares of Mueller Water Products (NYSE:MWA - Free Report) by 868.3% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 76,575 shares of the industrial products company's stock after purchasing an additional 68,667 shares during the period. CenterBook Partners LP's holdings in Mueller Water Products were worth $1,626,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in MWA. Public Employees Retirement System of Ohio purchased a new stake in shares of Mueller Water Products in the 2nd quarter worth approximately $43,000. Covestor Ltd boosted its stake in shares of Mueller Water Products by 95.9% during the third quarter. Covestor Ltd now owns 2,550 shares of the industrial products company's stock valued at $54,000 after purchasing an additional 1,248 shares in the last quarter. Nykredit A S purchased a new position in Mueller Water Products during the second quarter valued at approximately $60,000. GAMMA Investing LLC increased its holdings in shares of Mueller Water Products by 10.4% in the 2nd quarter. GAMMA Investing LLC now owns 4,487 shares of the industrial products company's stock valued at $116,000 after acquiring an additional 421 shares during the period. Finally, State of Wyoming bought a new position in Mueller Water Products in the first quarter worth about $121,000. Hedge funds and other institutional investors own 91.68% of the company's stock.

Insider Activity

In other news, Director Christine Ortiz sold 12,048 shares of the firm's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $24.23, for a total value of $291,923.04. Following the sale, the director directly owned 30,824 shares in the company, valued at approximately $746,865.52. This trade represents a 28.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Brian C. Healy acquired 1,376 shares of the firm's stock in a transaction dated Wednesday, October 7th. The shares were purchased at an average cost of $21.75 per share, with a total value of $29,928.00. Following the completion of the transaction, the director owned 26,322 shares in the company, valued at approximately $572,503.50. The trade was a 5.52% increase in their position. The disclosure for this purchase is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.10% of the company's stock.

Mueller Water Products Stock Performance

Shares of Mueller Water Products stock opened at $24.46 on Tuesday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 3.08 and a current ratio of 4.64. The company has a market cap of $3.82 billion, a price-to-earnings ratio of 15.31, a PEG ratio of 0.99 and a beta of 0.99. The business's 50 day moving average price is $22.56 and its 200 day moving average price is $25.79. Mueller Water Products has a one year low of $20.90 and a one year high of $31.00.

Mueller Water Products (NYSE:MWA - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The industrial products company reported $0.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.37 by $0.01. The business had revenue of $376.50 million during the quarter, compared to the consensus estimate of $375.51 million. Mueller Water Products had a net margin of 15.04% and a return on equity of 23.01%. The business's revenue was down 1.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.38 EPS. On average, research analysts predict that Mueller Water Products will post 1.59 EPS for the current year.

Mueller Water Products announced that its board has authorized a share buyback plan on Thursday, October 22nd that allows the company to buy back $300 million in shares. This repurchase authorization allows the industrial products company to reacquire up to 8.8% of its shares through open market purchases. Stock repurchase plans are usually a sign that the company's board of directors believes its stock is undervalued.

Mueller Water Products Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, November 9th will be given a dividend of $0.08 per share. This is an increase from Mueller Water Products's previous quarterly dividend of $0.07. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Monday, November 9th. Mueller Water Products's dividend payout ratio is currently 19.86%.

Analyst Ratings Changes

A number of analysts have recently weighed in on the company. Barclays lowered their price objective on Mueller Water Products from $25.00 to $24.00 and set an "underweight" rating for the company in a research report on Friday. Royal Bank Of Canada downgraded shares of Mueller Water Products from a "sector perform" rating to an "underperform" rating and decreased their target price for the company from $30.00 to $21.00 in a research report on Wednesday, September 16th. The Goldman Sachs Group lowered their price objective on Mueller Water Products from $29.00 to $24.00 and set a "neutral" rating on the stock in a research report on Friday, October 9th. Robert W. Baird set a $35.00 price objective on shares of Mueller Water Products in a research report on Friday, August 7th. Finally, Weiss Ratings lowered shares of Mueller Water Products from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, September 16th. Two equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $26.80.

About Mueller Water Products

Mueller Water Products manufactures products and solutions used to operate and maintain water infrastructure. Its offerings include water distribution valves, fire hydrants, ductile iron pipe and fittings, and products for measuring and managing water flow.

The company also provides technologies and services for detecting leaks and monitoring water systems. Its products are used by water utilities and municipalities in the treatment and distribution of drinking water, as well as in fire protection and wastewater applications.

Mueller Water Products traces part of its history to Mueller Co, founded by inventor Hieronymus Mueller in Decatur, Illinois, in 1857.

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