Watts Water Technologies (NYSE:WTS) Stock Price Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Watts Water Technologies shares crossed above their 200-day moving average, reaching $379.18 and last trading near $373, compared with the $325.71 200-day average.
• Analysts remain mixed: the consensus rating is “Hold” with an average price target of $367.70, although several firms raised targets as high as $417 and five analysts rate the stock a Buy.
• The company reported strong quarterly results, with adjusted EPS of $3.66 beating estimates and revenue rising 18.6% year over year to $763.1 million. Watts also declared a quarterly dividend of $0.63 per share, representing a 0.7% yield.

Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $325.71 and traded as high as $379.18. Watts Water Technologies shares last traded at $373.0410, with a volume of 143,325 shares changing hands.

Analyst Ratings Changes

Several research firms have recently weighed in on WTS. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $374.00 target price on shares of 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. Stifel Nicolaus raised their price objective on shares of Watts Water Technologies from $379.00 to $403.00 and gave the stock a "buy" rating in a report on Monday, July 20th. Royal Bank Of Canada lifted their target price on shares of Watts Water Technologies from $350.00 to $417.00 and gave the company a "sector perform" rating in a research note on Friday, August 7th. Finally, KeyCorp boosted their target price on Watts Water Technologies from $380.00 to $400.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Five analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $367.70.

Watts Water Technologies Trading Down 0.7%

The business's 50 day simple moving average is $359.79 and its 200-day simple moving average is $325.71. 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 stock has a market capitalization of $12.45 billion, a P/E ratio of 32.58, a PEG ratio of 3.10 and a beta of 1.15.

Watts Water Technologies (NYSE:WTS - Get Free Report) last issued its earnings results on Wednesday, August 5th. The technology company reported $3.66 EPS for the quarter, beating the consensus estimate of $3.34 by $0.32. The company had revenue of $763.10 million during the quarter, compared to analysts' expectations of $725.99 million. Watts Water Technologies had a net margin of 14.34% and a return on equity of 19.16%. The business's revenue for the quarter was up 18.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.09 EPS. As a group, analysts forecast that Watts Water Technologies, Inc. will post 12.81 EPS for the current year.

Watts Water Technologies Announces Dividend

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

Insider Buying and Selling

In other Watts Water Technologies news, Director Michael J. Dubose sold 398 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $309.63, for a total value of $123,232.74. Following the sale, the director directly owned 1,814 shares in the company, valued at approximately $561,668.82. This trade represents a 17.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 1.00% of the company's stock.

Institutional Trading of Watts Water Technologies

A number of large investors have recently made changes to their positions in the company. Wexford Capital LP acquired a new stake in shares of Watts Water Technologies in the third quarter valued at approximately $26,000. Acumen Wealth Advisors LLC bought a new stake in shares of Watts Water Technologies in the fourth quarter worth $28,000. Clearstead Advisors LLC boosted its holdings in Watts Water Technologies by 69.4% during the fourth quarter. Clearstead Advisors LLC now owns 105 shares of the technology company's stock worth $29,000 after purchasing an additional 43 shares during the last quarter. Advisory Services Network LLC bought a new position in Watts Water Technologies in the third quarter valued at $29,000. Finally, Kemnay Advisory Services Inc. bought a new position in Watts Water Technologies in the fourth quarter valued at $29,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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