Watts Water Technologies (NYSE:WTS) Stock Price Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Watts Water Technologies shares crossed above their 200-day moving average, reaching $364.17 before closing at $354.66, compared with a 200-day average of $328.00.
• Analysts maintain a cautious outlook: five rate the stock a Buy and six a Hold, producing an overall “Hold” consensus and an average price target of $367.70.
• The company reported strong quarterly results, with EPS of $3.66 versus the $3.34 estimate and revenue up 18.6% year over year to $763.1 million. Watts also declared a quarterly dividend of $0.63, equal to a 0.7% annualized yield.

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 $328.00 and traded as high as $364.17. Watts Water Technologies shares last traded at $354.66, with a volume of 207,588 shares changing hands.

Analyst Ratings Changes

WTS has been the topic of a number of research analyst reports. Royal Bank Of Canada boosted their target price on 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. Robert W. Baird set a $405.00 price target on Watts Water Technologies in a report on Friday, August 7th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Watts Water Technologies in a research note on Friday, August 7th. TD Cowen upped their price objective 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, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $358.00 target price on shares of Watts Water Technologies in a research report on Friday, May 8th. Five analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat.com, Watts Water Technologies currently has an average rating of "Hold" and a consensus target price of $367.70.

Watts Water Technologies Price Performance

The firm's 50-day moving average price is $362.79 and its 200-day moving average price is $328.00. 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 stock has a market capitalization of $11.84 billion, a PE ratio of 30.97, a PEG ratio of 3.59 and a beta of 1.13.

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 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 company had revenue of $763.10 million during the quarter, compared to analyst estimates of $725.99 million. During the same quarter last year, the business posted $3.09 earnings per share. The firm's revenue was up 18.6% on a year-over-year basis. On average, equities analysts forecast that Watts Water Technologies, Inc. will post 12.75 EPS for the current fiscal year.

Watts Water Technologies Dividend Announcement

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

Hedge Funds Weigh In On Watts Water Technologies

Large investors have recently modified their holdings of the stock. Kingsview Wealth Management LLC bought a new position in Watts Water Technologies during the fourth quarter valued at $2,848,000. Cumberland Partners Ltd raised its stake in shares of Watts Water Technologies by 100.0% in the fourth quarter. Cumberland Partners Ltd now owns 13,000 shares of the technology company's stock valued at $3,588,000 after acquiring an additional 6,500 shares during the period. Mach 1 Financial Group LLC bought a new stake in shares of Watts Water Technologies in the 4th quarter worth about $1,950,000. Handelsbanken Fonder AB boosted its stake in shares of Watts Water Technologies by 94.2% during the 4th quarter. Handelsbanken Fonder AB now owns 61,624 shares of the technology company's stock worth $17,009,000 after purchasing an additional 29,896 shares during the period. Finally, Candriam S.C.A. boosted its stake in shares of Watts Water Technologies by 26.6% during the 1st quarter. Candriam S.C.A. now owns 34,579 shares of the technology company's stock worth $10,038,000 after purchasing an additional 7,256 shares during the period. Institutional investors own 95.02% of the company's stock.

About Watts Water Technologies

Watts Water Technologies, Inc is a global manufacturer and distributor of flow control products and solutions designed to ensure the safe, efficient delivery and use of water. Founded in 1874 and headquartered in North Andover, Massachusetts, the company has built a reputation for engineering innovation in residential, commercial and industrial plumbing, heating, cooling and water treatment systems. Watts operates through a comprehensive portfolio of brands and product lines that address application-specific requirements in water safety, pressure regulation, flow control and filtration.

The company's product offerings span backflow preventers, pressure reducing valves, relief valves and steam traps, as well as hydronic balancing and temperature control devices for heating systems.

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