Watts Water Technologies (NYSE:WTS) Hits New 52-Week High - Should You Buy?

Key Points

• Watts Water Technologies (NYSE:WTS) reached a new 52-week high of $287.89 in mid-day trading, closing at $285.05 with a trading volume of 45,347 shares.
• The company reported a quarterly EPS of $3.09, surpassing estimates, along with revenues of $643.70 million, reflecting a year-over-year increase of 7.8%.
• Watts Water Technologies announced a quarterly dividend of $0.52, translating to an annualized yield of 0.7%, with a payout ratio of 22.37%.

Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $287.89 and last traded at $285.05, with a volume of 45347 shares. The stock had previously closed at $281.27.

Wall Street Analysts Forecast Growth

WTS has been the topic of several analyst reports. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating on shares of Watts Water Technologies in a research note on Friday, August 8th. Stifel Nicolaus boosted their price objective on shares of Watts Water Technologies from $290.00 to $300.00 and gave the company a "buy" rating in a report on Friday, August 8th. Finally, Wall Street Zen cut shares of Watts Water Technologies from a "strong-buy" rating to a "buy" rating in a report on Friday, September 5th. One investment analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, Watts Water Technologies has a consensus rating of "Hold" and a consensus price target of $245.50.

Watts Water Technologies Stock Down 0.6%

The stock has a market capitalization of $9.33 billion, a P/E ratio of 30.06, a P/E/G ratio of 3.38 and a beta of 1.11. The company's 50-day moving average price is $267.66 and its 200 day moving average price is $238.26. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.63 and a current ratio of 2.59.

Watts Water Technologies (NYSE:WTS - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The technology company reported $3.09 EPS for the quarter, beating the consensus estimate of $2.68 by $0.41. The firm had revenue of $643.70 million for the quarter, compared to the consensus estimate of $612.15 million. Watts Water Technologies had a net margin of 13.63% and a return on equity of 18.11%. The company's revenue was up 7.8% on a year-over-year basis. During the same period last year, the firm earned $2.46 EPS. As a group, equities analysts expect that Watts Water Technologies, Inc. will post 9.08 earnings per share for the current year.

Watts Water Technologies Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Friday, August 29th were paid a $0.52 dividend. This represents a $2.08 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Friday, August 29th. Watts Water Technologies's dividend payout ratio (DPR) is presently 22.37%.

Insider Activity at Watts Water Technologies

In other Watts Water Technologies news, Director Joseph T. Noonan sold 713 shares of Watts Water Technologies stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $274.45, for a total value of $195,682.85. Following the completion of the transaction, the director directly owned 1,194 shares of the company's stock, valued at $327,693.30. This trade represents a 37.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 1.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Watts Water Technologies

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Osaic Holdings Inc. grew its stake in shares of Watts Water Technologies by 97.8% in the 2nd quarter. Osaic Holdings Inc. now owns 2,176 shares of the technology company's stock worth $535,000 after buying an additional 1,076 shares in the last quarter. Thrivent Financial for Lutherans grew its holdings in Watts Water Technologies by 0.6% during the 2nd quarter. Thrivent Financial for Lutherans now owns 6,457 shares of the technology company's stock valued at $1,588,000 after purchasing an additional 40 shares during the last quarter. State of Wyoming bought a new position in Watts Water Technologies during the 2nd quarter valued at about $380,000. FORA Capital LLC bought a new position in Watts Water Technologies during the 2nd quarter valued at about $356,000. Finally, Evergreen Capital Management LLC bought a new position in Watts Water Technologies during the 2nd quarter valued at about $235,000. 95.02% of the stock is owned by hedge funds and other institutional investors.

About Watts Water Technologies

Watts Water Technologies, Inc, together with its subsidiaries, supplies products and solutions that manage and conserve the flow of fluids and energy into, through, and out of buildings in the commercial, industrial, and residential markets in the Americas, Europe, the Asia-Pacific, the Middle East, and Africa.

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