Watts Water Technologies (NYSE:WTS) Share Price Breaks Above 50-Day Moving Average - Here's Why

Key Points

• Watts Water Technologies shares broke above their 50-day moving average, reaching $368.34 and last trading near $367.17, compared with a 50-day average of $359.97.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $371.90; individual targets range from $320 to $445.
• The company recently exceeded quarterly expectations, reporting $3.66 in EPS and $763.2 million in revenue, while declaring a $0.63 quarterly dividend yielding approximately 0.7%.

Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report)'s share price passed above its fifty day moving average during trading on Monday. The stock has a fifty day moving average of $359.97 and traded as high as $368.34. Watts Water Technologies shares last traded at $367.1710, with a volume of 210,164 shares.

Analyst Ratings Changes

WTS has been the subject of a number of recent research reports. Stifel Nicolaus set a $445.00 target price on Watts Water Technologies in a research report on Monday, October 19th. The Goldman Sachs Group reissued a "neutral" rating and set a $374.00 price target on shares of Watts Water Technologies in a research report on Friday, August 7th. Weiss Ratings upgraded Watts Water Technologies from a "buy (a-)" rating to a "buy (a)" rating in a research report on Thursday, October 8th. TD Cowen increased their target price on Watts Water Technologies from $275.00 to $320.00 and gave the stock a "hold" rating in a report on Thursday, July 2nd. Finally, Barclays lifted their price objective on shares of Watts Water Technologies from $414.00 to $425.00 and gave the company an "overweight" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $371.90.

Watts Water Technologies Price Performance

The stock has a market capitalization of $12.26 billion, a price-to-earnings ratio of 32.07, a P/E/G ratio of 3.49 and a beta of 1.15. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.66 and a quick ratio of 1.60. The company's 50-day simple moving average is $359.97 and its 200-day simple moving average is $329.35.

Watts Water Technologies (NYSE:WTS - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The technology company reported $3.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.34 by $0.32. Watts Water Technologies had a return on equity of 19.16% and a net margin of 14.34%. The business had revenue of $763.20 million during the quarter, compared to the consensus estimate of $725.99 million. During the same period in the previous year, the company posted $3.09 EPS. The firm's quarterly revenue was up 18.6% on a year-over-year basis. Research analysts forecast that Watts Water Technologies, Inc. will post 12.87 earnings per share for the current fiscal year.

Watts Water Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Tuesday, September 1st. Watts Water Technologies's payout ratio is presently 22.01%.

Insider Buying and Selling at Watts Water Technologies

In other Watts Water Technologies news, insider Elie Melhem sold 1,096 shares of Watts Water Technologies stock in a transaction on Friday, September 4th. The stock was sold at an average price of $359.55, for a total value of $394,066.80. Following the completion of the transaction, the insider directly owned 7,867 shares of the company's stock, valued at $2,828,579.85. The trade was a 12.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph Noonan sold 3,650 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $353.72, for a total transaction of $1,291,078.00. Additional details regarding this sale are available in the official SEC disclosure. 1.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Watts Water Technologies

Large investors have recently bought and sold shares of the company. Apollon Wealth Management LLC lifted its holdings in shares of Watts Water Technologies by 1.5% during the first quarter. Apollon Wealth Management LLC now owns 2,702 shares of the technology company's stock valued at $784,000 after purchasing an additional 40 shares in the last quarter. Robertson Stephens Wealth Management LLC boosted its position in shares of Watts Water Technologies by 6.6% during the third quarter. Robertson Stephens Wealth Management LLC now owns 729 shares of the technology company's stock valued at $258,000 after buying an additional 45 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of Watts Water Technologies by 11.4% during the second quarter. GAMMA Investing LLC now owns 478 shares of the technology company's stock valued at $187,000 after buying an additional 49 shares during the last quarter. Cetera Investment Advisers increased its holdings in Watts Water Technologies by 2.9% in the 1st quarter. Cetera Investment Advisers now owns 1,818 shares of the technology company's stock worth $528,000 after buying an additional 52 shares in the last quarter. Finally, Kestra Advisory Services LLC increased its holdings in Watts Water Technologies by 8.6% in the 1st quarter. Kestra Advisory Services LLC now owns 706 shares of the technology company's stock worth $205,000 after buying an additional 56 shares in the last quarter. 95.02% of the stock is currently owned by institutional investors.

Watts Water Technologies Company Profile

Watts Water Technologies, Inc designs, manufactures and sells products that manage the safety, efficiency, quality and flow of water in plumbing, heating and cooling systems. Its products serve residential, commercial, industrial and institutional applications, including new construction, renovation and infrastructure projects.

The company's offerings include backflow prevention and water pressure management equipment, valves, regulators, drainage and plumbing products, water conditioning and filtration systems, water heaters, and solutions for hydronic heating and cooling.

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