Watts Water Technologies, Inc. $WTS Holdings Cut by Vanguard Group Inc.

Key Points

• Vanguard Group trimmed its stake in Watts Water Technologies by 0.8% to 3,075,393 shares but still owns about 9.22% of the company (≈$848.9M), and institutional investors collectively hold 95.02% of the stock.
• Watts beat the quarter with EPS $2.62 vs. $2.36 and revenue $625.1M vs. $610.4M (revenue up 15.7% YoY); the company has a market cap of $9.79B, a P/E of 28.86, and an average analyst rating of "Hold" with a $331.67 price target.
• Insiders have been selling recently (CEO Robert J. Pagano Jr. sold 16,066 shares for ~$5.26M and insiders sold 29,674 shares worth ~$9.67M in the last three months), and Watts pays a monthly dividend of $0.52 (≈2.1% yield, 20.45% payout ratio).

Vanguard Group Inc. lowered its position in Watts Water Technologies, Inc. (NYSE:WTS - Free Report) by 0.8% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 3,075,393 shares of the technology company's stock after selling 25,291 shares during the quarter. Vanguard Group Inc. owned about 9.22% of Watts Water Technologies worth $848,870,000 as of its most recent filing with the Securities and Exchange Commission.

Other large investors also recently made changes to their positions in the company. Boston Partners increased its stake in shares of Watts Water Technologies by 2.2% during the third quarter. Boston Partners now owns 907,336 shares of the technology company's stock valued at $253,211,000 after acquiring an additional 19,247 shares during the period. Invesco Ltd. grew its position in Watts Water Technologies by 34.4% in the third quarter. Invesco Ltd. now owns 469,508 shares of the technology company's stock worth $131,124,000 after buying an additional 120,090 shares during the last quarter. AQR Capital Management LLC grew its position in Watts Water Technologies by 17.5% in the third quarter. AQR Capital Management LLC now owns 326,139 shares of the technology company's stock worth $90,226,000 after buying an additional 48,470 shares during the last quarter. Port Capital LLC grew its position in Watts Water Technologies by 1.0% in the third quarter. Port Capital LLC now owns 251,206 shares of the technology company's stock worth $70,157,000 after buying an additional 2,378 shares during the last quarter. Finally, UBS Group AG grew its position in Watts Water Technologies by 223.0% in the third quarter. UBS Group AG now owns 202,250 shares of the technology company's stock worth $56,484,000 after buying an additional 139,637 shares during the last quarter. Institutional investors and hedge funds own 95.02% of the company's stock.

Watts Water Technologies Price Performance

Shares of Watts Water Technologies stock opened at $293.54 on Friday. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.49 and a current ratio of 2.51. The firm's 50-day simple moving average is $303.67 and its 200-day simple moving average is $292.24. Watts Water Technologies, Inc. has a twelve month low of $209.85 and a twelve month high of $345.17. The firm has a market cap of $9.79 billion, a P/E ratio of 28.86, a price-to-earnings-growth ratio of 2.67 and a beta of 1.20.

Watts Water Technologies (NYSE:WTS - Get Free Report) last issued its earnings results on Wednesday, February 11th. The technology company reported $2.62 earnings per share for the quarter, beating the consensus estimate of $2.36 by $0.26. Watts Water Technologies had a net margin of 13.98% and a return on equity of 18.55%. The business had revenue of $625.10 million for the quarter, compared to analyst estimates of $610.40 million. During the same period in the previous year, the business earned $2.05 EPS. The firm's revenue was up 15.7% on a year-over-year basis. As a group, research analysts expect that Watts Water Technologies, Inc. will post 11.62 EPS for the current fiscal year.

Watts Water Technologies Announces Dividend

The company also recently declared a monthly dividend, which was paid on Friday, March 13th. Shareholders of record on Friday, February 27th were given a $0.52 dividend. The ex-dividend date was Friday, February 27th. This represents a c) dividend on an annualized basis and a yield of 2.1%. Watts Water Technologies's payout ratio is 20.45%.

Analyst Upgrades and Downgrades

WTS has been the subject of a number of recent analyst reports. Wells Fargo & Company set a $275.00 price objective on shares of Watts Water Technologies in a research note on Thursday, January 8th. HSBC assumed coverage on shares of Watts Water Technologies in a research note on Tuesday, January 27th. They set a "buy" rating for the company. TD Cowen restated a "hold" rating on shares of Watts Water Technologies in a report on Thursday, January 8th. Zacks Research downgraded shares of Watts Water Technologies from a "strong-buy" rating to a "hold" rating in a report on Friday, February 27th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $339.00 target price on shares of Watts Water Technologies in a report on Friday, February 13th. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $331.67.

Insider Activity at Watts Water Technologies

In other news, CEO Robert J. Pagano, Jr. sold 16,066 shares of the company's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $327.31, for a total transaction of $5,258,562.46. Following the transaction, the chief executive officer directly owned 191,202 shares in the company, valued at approximately $62,582,326.62. This represents a 7.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, General Counsel Kenneth Robert Lepage sold 5,025 shares of the company's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $321.08, for a total transaction of $1,613,427.00. Following the transaction, the general counsel owned 12,284 shares in the company, valued at $3,944,146.72. The trade was a 29.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 29,674 shares of company stock valued at $9,669,838 in the last three months. 1.00% of the stock is currently owned by corporate insiders.

Watts Water Technologies Company 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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