Mueller Water Products (NYSE:MWA) Shares Down 3.8% - Here's What Happened

Key Points

• Mueller Water Products shares fell 3.8% to about $21.88 on unusually light volume, trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed, with a consensus rating of Hold and an average price target of $28.40; recent ratings ranged from RBC’s $21 “Underperform” target to Baird’s $35 target.
• The company exceeded quarterly expectations, reporting $0.50 EPS versus the $0.39 estimate and $395.9 million in revenue, up 4.1% year over year. Mueller also maintains a quarterly dividend of $0.07 per share, yielding about 1.3%.

Mueller Water Products (NYSE:MWA - Get Free Report) dropped 3.8% on Thursday . The company traded as low as $22.00 and last traded at $21.8750. Approximately 251,676 shares changed hands during trading, a decline of 79% from the average daily volume of 1,171,327 shares. The stock had previously closed at $22.74.

Wall Street Analyst Weigh In

MWA has been the subject of a number of research reports. Weiss Ratings upgraded Mueller Water Products from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, August 11th. Barclays initiated coverage on Mueller Water Products in a report on Tuesday, June 30th. They issued an "underweight" rating and a $25.00 target price for the company. Robert W. Baird set a $35.00 target price on Mueller Water Products in a research report on Friday, August 7th. Royal Bank Of Canada lowered Mueller Water Products from a "sector perform" rating to an "underperform" rating and cut their price target for the company from $30.00 to $21.00 in a research note on Wednesday. Finally, Wall Street Zen upgraded Mueller Water Products from a "hold" rating to a "buy" rating in a report on Monday, August 10th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $28.40.

Mueller Water Products Trading Down 2.9%

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 firm's fifty day simple moving average is $24.91 and its 200-day simple moving average is $26.24. The stock has a market cap of $3.45 billion, a P/E ratio of 15.66, a price-to-earnings-growth ratio of 0.96 and a beta of 1.01.

Mueller Water Products (NYSE:MWA - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $395.90 million for the quarter, compared to the consensus estimate of $391.49 million. During the same quarter in the previous year, the company earned $0.34 EPS. The company's revenue for the quarter was up 4.1% on a year-over-year basis. Equities research analysts expect that Mueller Water Products will post 1.58 EPS for the current fiscal year.

Mueller Water Products Dividend Announcement

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

Insider Transactions at Mueller Water Products

In other Mueller Water Products news, Director Brian Healy acquired 1,183 shares of the stock in a transaction dated Tuesday, July 7th. The stock was purchased at an average cost of $25.33 per share, with a total value of $29,965.39. Following the transaction, the director owned 24,946 shares in the company, valued at approximately $631,882.18. The trade was a 4.98% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Paul McAndrew sold 40,000 shares of the firm'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 sale, the chief executive officer directly owned 42,556 shares of the company's stock, valued at $1,123,052.84. This represents a 48.45% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 52,598 shares of company stock valued at $1,360,685. Corporate insiders own 1.10% of the company's stock.

Institutional Trading of Mueller Water Products

Several hedge funds have recently modified their holdings of the stock. Weiss Asset Management LP bought a new stake in Mueller Water Products during the first quarter worth $1,571,000. Fiduciary Management Inc. WI bought a new position in Mueller Water Products during the 4th quarter valued at $75,400,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new position in Mueller Water Products during the 4th quarter valued at $2,222,000. Intech Investment Management LLC boosted its holdings in Mueller Water Products by 58.9% during the 4th quarter. Intech Investment Management LLC now owns 123,367 shares of the industrial products company's stock worth $2,939,000 after acquiring an additional 45,742 shares during the last quarter. Finally, Walleye Capital LLC purchased a new position in Mueller Water Products during the 1st quarter worth $1,516,000. Institutional investors own 91.68% of the company's stock.

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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