Watts Water Technologies (NYSE:WTS) Hits New 52-Week High - Here's What Happened

Key Points

• Watts Water Technologies hit a new 52-week high, trading as high as $347.60 after closing previously at $339.00.
• The company’s latest earnings beat expectations, with EPS of $3.04 versus the $2.72 consensus and revenue of $677.3 million, up 21.4% year over year.
• Despite the stock’s strength, Wall Street remains cautious overall: the consensus rating is Hold with an average price target of $329.44, even though the firm recently paid a $0.63 quarterly dividend.

Shares of Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report) hit a new 52-week high during trading on Wednesday . The company traded as high as $347.60 and last traded at $347.2710, with a volume of 96667 shares trading hands. The stock had previously closed at $339.00.

Wall Street Analyst Weigh In

WTS has been the topic of a number of research reports. Zacks Research downgraded shares of Watts Water Technologies from a "strong-buy" rating to a "hold" rating in a research note on Friday, February 27th. Royal Bank Of Canada raised their target price on shares of Watts Water Technologies from $318.00 to $323.00 and gave the company a "sector perform" rating in a research note on Friday, May 8th. Barclays cut their target price on shares of Watts Water Technologies from $323.00 to $317.00 and set an "equal weight" rating on the stock in a research note on Monday, May 11th. Wall Street Zen downgraded shares of Watts Water Technologies from a "strong-buy" rating to a "buy" rating in a research note on Saturday, February 28th. Finally, Stifel Nicolaus set a $379.00 target price on shares of Watts Water Technologies in a research note on Friday, May 8th. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $329.44.

Watts Water Technologies Price Performance

The stock has a market cap of $11.62 billion, a PE ratio of 31.83, a P/E/G ratio of 2.96 and a beta of 1.19. The company has a current ratio of 2.72, a quick ratio of 1.62 and a debt-to-equity ratio of 0.09. The company's 50 day moving average is $305.24 and its 200-day moving average is $299.80.

Watts Water Technologies (NYSE:WTS - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The technology company reported $3.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.72 by $0.32. Watts Water Technologies had a net margin of 14.32% and a return on equity of 18.92%. The firm had revenue of $677.30 million for the quarter, compared to the consensus estimate of $638.13 million. During the same quarter in the previous year, the firm posted $2.37 EPS. The firm's quarterly revenue was up 21.4% on a year-over-year basis. As a group, sell-side analysts predict that Watts Water Technologies, Inc. will post 11.9 earnings per share for the current year.

Watts Water Technologies Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Monday, June 1st. Watts Water Technologies's dividend payout ratio (DPR) is currently 23.06%.

Insider Buying and Selling at Watts Water Technologies

In other Watts Water Technologies news, insider Elie Melhem sold 2,257 shares of the firm's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $301.00, for a total transaction of $679,357.00. Following the completion of the transaction, the insider directly owned 8,963 shares of the company's stock, valued at $2,697,863. This trade represents a 20.12% 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 Michael J. Dubose sold 398 shares of the firm's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $309.63, for a total transaction of $123,232.74. Following the transaction, the director directly owned 1,814 shares of the company's stock, valued at approximately $561,668.82. This represents a 17.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 3,027 shares of company stock valued at $911,262. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Wexford Capital LP acquired a new position in shares of Watts Water Technologies in the 3rd quarter valued at about $26,000. Acumen Wealth Advisors LLC acquired a new position in shares of Watts Water Technologies in the 4th quarter valued at about $28,000. Clearstead Advisors LLC boosted its holdings in shares of Watts Water Technologies by 69.4% in the 4th quarter. Clearstead Advisors LLC now owns 105 shares of the technology company's stock valued at $29,000 after buying an additional 43 shares during the period. Advisory Services Network LLC acquired a new position in shares of Watts Water Technologies in the 3rd quarter valued at about $29,000. Finally, Kemnay Advisory Services Inc. acquired a new position in shares of Watts Water Technologies in the 4th quarter valued at about $29,000. 95.02% of the stock is owned by institutional investors and hedge funds.

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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