Watts Water Technologies (NYSE:WTS) Shares Pass Above 200-Day Moving Average - Here's What Happened

Key Points

• Watts Water Technologies shares rose above their 200-day moving average, reaching $352.92 and closing near $351.29, compared with the average of $330.58.
• Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $367.70; individual targets range from $320 to $425.
• The company reported stronger-than-expected quarterly results, posting EPS of $3.66 versus estimates of $3.34 and revenue of $763.1 million, up 18.6% year over year. It also declared a quarterly dividend of $0.63 per share.

Shares of Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $330.58 and traded as high as $352.92. Watts Water Technologies shares last traded at $351.29, with a volume of 148,552 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts have commented on WTS shares. TD Cowen lifted their target price on shares of Watts Water Technologies from $275.00 to $320.00 and gave the stock a "hold" rating in a research note on Thursday, July 2nd. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $374.00 price target on shares of Watts Water Technologies in a research report on Friday, August 7th. Barclays upped their target price on shares of Watts Water Technologies from $414.00 to $425.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Weiss Ratings raised Watts Water Technologies from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Monday, September 14th. Finally, Robert W. Baird set a $405.00 price target on Watts Water Technologies in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $367.70.

Watts Water Technologies Stock Up 0.2%

The firm has a market cap of $11.73 billion, a price-to-earnings ratio of 30.68, a P/E/G ratio of 3.44 and a beta of 1.13. The firm's fifty day moving average is $360.41 and its two-hundred day moving average is $330.58. The company has a debt-to-equity ratio of 0.05, a current ratio of 2.66 and a quick ratio of 1.60.

Watts Water Technologies (NYSE:WTS - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The technology company reported $3.66 EPS for the quarter, topping analysts' consensus estimates of $3.34 by $0.32. The company had revenue of $763.10 million for the quarter, compared to the consensus estimate of $725.99 million. Watts Water Technologies had a net margin of 14.34% and a return on equity of 19.16%. Watts Water Technologies's revenue was up 18.6% on a year-over-year basis. During the same period in the previous year, the firm earned $3.09 EPS. On average, sell-side analysts expect that Watts Water Technologies, Inc. will post 12.75 EPS for the current fiscal year.

Watts Water Technologies Announces Dividend

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

Insider Buying and Selling

In other Watts Water Technologies news, Director Joseph T. Noonan sold 3,650 shares of Watts Water Technologies stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $353.72, for a total transaction of $1,291,078.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Elie Melhem sold 1,096 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $359.55, for a total transaction of $394,066.80. Following the completion of the sale, the insider owned 7,867 shares of the company's stock, valued at approximately $2,828,579.85. The trade was a 12.23% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.00% of the company's stock.

Institutional Investors Weigh In On Watts Water Technologies

A number of large investors have recently bought and sold shares of WTS. Geode Capital Management LLC boosted its position in Watts Water Technologies by 3.2% during the fourth quarter. Geode Capital Management LLC now owns 832,148 shares of the technology company's stock worth $229,721,000 after purchasing an additional 25,501 shares during the period. First Trust Advisors LP lifted its stake in shares of Watts Water Technologies by 6.7% in the first quarter. First Trust Advisors LP now owns 545,404 shares of the technology company's stock worth $158,325,000 after buying an additional 34,381 shares during the last quarter. Norges Bank acquired a new stake in shares of Watts Water Technologies in the fourth quarter worth $100,627,000. Lazard Asset Management LLC boosted its holdings in shares of Watts Water Technologies by 79.8% during the 1st quarter. Lazard Asset Management LLC now owns 218,832 shares of the technology company's stock worth $63,525,000 after buying an additional 97,115 shares during the period. Finally, Squarepoint Ops LLC boosted its holdings in shares of Watts Water Technologies by 8,421.5% during the 2nd quarter. Squarepoint Ops LLC now owns 104,815 shares of the technology company's stock worth $41,030,000 after buying an additional 103,585 shares during the period. 95.02% of the stock is currently owned by institutional investors.

About Watts Water Technologies

Watts Water Technologies, Inc is a manufacturer of products and systems designed to manage the safety, efficiency, and quality of water within residential, commercial, and industrial plumbing and heating applications. Its offerings help regulate water pressure and temperature, prevent backflow and contamination, control flow, and improve water quality.

The company's products include valves, backflow prevention devices, regulators, drainage and plumbing components, water filtration and treatment systems, electric and hydronic heating equipment, and related controls.

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