Mueller Water Products (NYSE:MWA) Reaches New 52-Week Low - Time to Sell?

Key Points

• Mueller Water Products fell to a new 52-week low of $21.29, below its 50-day and 200-day moving averages. The stock has a $3.33 billion market capitalization and was trading down about 1.3%.
• Analyst sentiment is mixed, with two Buy, one Hold, and two Sell ratings. MarketBeat reports an average rating of Hold and an average price target of $28.40, though RBC cut its target to $21 and assigned an Underperform rating.
• The company exceeded quarterly earnings expectations, reporting $0.50 EPS and $395.9 million in revenue, while revenue grew 4.1% year over year. Mueller also pays a quarterly dividend of $0.07 per share, but insiders sold roughly $1.36 million of stock over the past three months.

Mueller Water Products (NYSE:MWA - Get Free Report) reached a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $21.29 and last traded at $21.3250, with a volume of 239380 shares. The stock had previously closed at $21.64.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Wall Street Zen upgraded shares of Mueller Water Products from a "hold" rating to a "buy" rating in a report on Monday, August 10th. Weiss Ratings downgraded shares of Mueller Water Products from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, September 16th. Robert W. Baird set a $35.00 price objective on shares of Mueller Water Products in a research note on Friday, August 7th. Barclays initiated coverage on shares of Mueller Water Products in a research report on Tuesday, June 30th. They set an "underweight" rating and a $25.00 price objective on the stock. Finally, Royal Bank Of Canada downgraded shares of Mueller Water Products from a "sector perform" rating to an "underperform" rating and cut their target price for the company from $30.00 to $21.00 in a research note on Wednesday, September 16th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Mueller Water Products has an average rating of "Hold" and an average price target of $28.40.

Mueller Water Products Trading Down 1.3%

The stock has a market cap of $3.33 billion, a price-to-earnings ratio of 15.15, a price-to-earnings-growth ratio of 0.95 and a beta of 1.01. 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's 50 day simple moving average is $24.38 and its two-hundred day simple moving average is $25.84.

Mueller Water Products (NYSE:MWA - Get Free Report) last issued its earnings results on Wednesday, August 5th. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.39 by $0.11. Mueller Water Products had a net margin of 15.02% and a return on equity of 23.55%. The company had revenue of $395.90 million during the quarter, compared to analyst estimates of $391.49 million. During the same quarter last year, the business posted $0.34 EPS. The company's revenue for the quarter was up 4.1% on a year-over-year basis. Research analysts expect that Mueller Water Products will post 1.53 EPS for the current fiscal year.

Mueller Water Products Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Investors of record on Monday, August 10th were given a dividend of $0.07 per share. The ex-dividend date of this dividend was Monday, August 10th. This represents a $0.28 dividend on an annualized basis and a yield of 1.3%. Mueller Water Products's dividend payout ratio (DPR) is presently 19.86%.

Insiders Place Their Bets

In related news, CEO Paul McAndrew sold 40,000 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $26.39, for a total value of $1,055,600.00. Following the completion of the sale, the chief executive officer owned 42,556 shares of the company's stock, valued at approximately $1,123,052.84. The trade was a 48.45% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Christine Ortiz sold 12,048 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $24.23, for a total value of $291,923.04. Following the completion of the transaction, the director owned 30,824 shares in the company, valued at $746,865.52. This represents a 28.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 52,598 shares of company stock valued at $1,360,685 in the last three months. Insiders own 1.10% of the company's stock.

Institutional Trading of Mueller Water Products

Several large investors have recently added to or reduced their stakes in the business. GAMMA Investing LLC lifted its position in Mueller Water Products by 10.4% during the second quarter. GAMMA Investing LLC now owns 4,487 shares of the industrial products company's stock worth $116,000 after purchasing an additional 421 shares during the period. Wedbush Securities Inc. increased its holdings in Mueller Water Products by 3.8% in the 2nd quarter. Wedbush Securities Inc. now owns 12,308 shares of the industrial products company's stock valued at $318,000 after buying an additional 447 shares during the period. Global Retirement Partners LLC raised its position in shares of Mueller Water Products by 12.0% in the 4th quarter. Global Retirement Partners LLC now owns 6,470 shares of the industrial products company's stock valued at $154,000 after buying an additional 692 shares in the last quarter. Sterling Capital Management LLC raised its position in shares of Mueller Water Products by 89.5% in the 1st quarter. Sterling Capital Management LLC now owns 1,935 shares of the industrial products company's stock valued at $53,000 after buying an additional 914 shares in the last quarter. Finally, Personal CFO Solutions LLC lifted its holdings in shares of Mueller Water Products by 8.5% during the 1st quarter. Personal CFO Solutions LLC now owns 11,727 shares of the industrial products company's stock worth $322,000 after acquiring an additional 916 shares during the period. 91.68% of the stock is owned by institutional investors.

About Mueller Water Products

Mueller Water Products, Inc designs and manufactures products used to support the operation, maintenance, and monitoring of water distribution and wastewater infrastructure. Its offerings include gate, butterfly, and check valves; fire hydrants; pipe fittings; and related products used to control and manage the flow of water through municipal and other utility systems.

The company also provides technologies and services intended to help utilities monitor their networks, identify leaks, improve asset management, and enhance operational efficiency.

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