Watts Water Technologies (NYSE:WTS) Stock Price Breaks Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Watts Water Technologies shares crossed above their 200-day moving average, trading near $362 versus the $334.68 average, though the stock was down slightly on the day.
• Analysts hold a generally positive view, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $367.70; individual targets range as high as $425.
• The company exceeded quarterly expectations, reporting $3.66 in adjusted EPS and $763.2 million in revenue, while revenue grew 18.6% year over year. Watts also pays a $2.52 annualized dividend, yielding about 0.7%.

Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Tuesday. The stock has a two hundred day moving average of $334.68 and traded as high as $366.19. Watts Water Technologies shares last traded at $362.0630, with a volume of 148,087 shares traded.

Analyst Upgrades and Downgrades

WTS has been the topic of a number of analyst reports. Robert W. Baird set a $405.00 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. The Goldman Sachs Group reiterated a "neutral" rating and issued a $374.00 target price on shares of Watts Water Technologies in a report on Friday, August 7th. Royal Bank Of Canada lifted their price target on shares of Watts Water Technologies from $350.00 to $417.00 and gave the stock a "sector perform" rating in a research report on Friday, August 7th. Finally, KeyCorp boosted their price target on shares of Watts Water Technologies from $380.00 to $400.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, Watts Water Technologies has an average rating of "Moderate Buy" and an average price target of $367.70.

Watts Water Technologies Trading Down 0.2%

The company has a current ratio of 2.66, a quick ratio of 1.60 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $12.09 billion, a P/E ratio of 31.62, a PEG ratio of 3.52 and a beta of 1.15. The business has a 50 day moving average of $363.21 and a 200-day moving average of $334.68.

Watts Water Technologies (NYSE:WTS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The technology company reported $3.66 EPS for the quarter, beating analysts' consensus estimates 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 company had revenue of $763.20 million for the quarter, compared to analyst estimates of $725.99 million. During the same period in the previous year, the company posted $3.09 earnings per share. The company's quarterly revenue was up 18.6% compared to the same quarter last year. Analysts anticipate that Watts Water Technologies, Inc. will post 12.88 EPS for the current fiscal year.

Watts Water Technologies Dividend Announcement

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

Insider Buying and Selling

In related news, Director Joseph T. Noonan sold 3,650 shares of the firm's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $353.72, for a total value of $1,291,078.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Elie Melhem sold 1,096 shares of the company's stock in a transaction 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 sale, the insider directly owned 7,867 shares in the company, valued at $2,828,579.85. This trade represents a 12.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Watts Water Technologies

A number of institutional investors and hedge funds have recently modified their holdings of WTS. First Trust Advisors LP increased its position in Watts Water Technologies by 6.7% during 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. Lazard Asset Management LLC boosted its stake 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 acquiring an additional 97,115 shares during the period. Squarepoint Ops LLC increased 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 acquiring an additional 103,585 shares during the last quarter. Livforsakringsbolaget Skandia Omsesidigt raised its stake in Watts Water Technologies by 20,071.4% in the 1st quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 141,200 shares of the technology company's stock valued at $40,989,000 after acquiring an additional 140,500 shares during the period. Finally, Renaissance Technologies LLC lifted its holdings in Watts Water Technologies by 58.7% during the 1st quarter. Renaissance Technologies LLC now owns 135,140 shares of the technology company's stock valued at $39,230,000 after purchasing an additional 49,960 shares during the last quarter. 95.02% of the stock is owned by institutional investors.

Watts Water Technologies Company Profile

Watts Water Technologies, Inc designs and manufactures products that help manage the safety, efficiency, and quality of water in residential, commercial, institutional, and industrial systems. Its offerings are used in plumbing, heating, water distribution, and drainage applications.

The company's product portfolio includes backflow prevention devices, pressure regulators, safety and relief valves, water quality and conditioning equipment, leak detection products, drainage systems, and hydronic and HVAC components.

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