Watts Water Technologies (NYSE:WTS) Lowered to Buy Rating by Wall Street Zen

Key Points

• Watts Water Technologies has been downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen, indicating a negative shift in analyst sentiment.
• Despite this downgrade, the company reported strong quarterly earnings of $3.09 per share, surpassing estimates and demonstrating a year-over-year revenue growth of 7.8%.
• Investment analysts have mixed opinions on the stock, with a consensus rating of "Hold" and a target price averaging $253.80.

Watts Water Technologies (NYSE:WTS - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday.

A number of other research analysts have also weighed in on the company. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating on shares of Watts Water Technologies in a report on Friday, August 8th. Weiss Ratings reaffirmed a "buy (b+)" rating on shares of Watts Water Technologies in a research note on Tuesday, October 14th. Stifel Nicolaus raised their price objective on shares of Watts Water Technologies from $290.00 to $300.00 and gave the company a "buy" rating in a research note on Friday, August 8th. Zacks Research downgraded shares of Watts Water Technologies from a "strong-buy" rating to a "hold" rating in a report on Monday, October 20th. Finally, Barclays started coverage on shares of Watts Water Technologies in a research report on Friday, September 19th. They set an "equal weight" rating and a $287.00 target price on the stock. Two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, Watts Water Technologies has a consensus rating of "Hold" and an average price target of $253.80.

Watts Water Technologies Stock Performance

Shares of WTS stock opened at $278.27 on Friday. The stock's 50-day moving average price is $278.72 and its 200 day moving average price is $252.42. The company has a quick ratio of 1.63, a current ratio of 2.59 and a debt-to-equity ratio of 0.10. The stock has a market capitalization of $9.28 billion, a PE ratio of 29.92, a price-to-earnings-growth ratio of 3.34 and a beta of 1.13. Watts Water Technologies has a 52-week low of $177.59 and a 52-week high of $287.89.

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

Insiders Place Their Bets

In related news, Director Joseph T. Noonan sold 713 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $274.45, for a total transaction of $195,682.85. Following the transaction, the director directly owned 1,194 shares of the company's stock, valued at approximately $327,693.30. This represents a 37.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.00% of the company's stock.

Hedge Funds Weigh In On Watts Water Technologies

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Kayne Anderson Rudnick Investment Management LLC grew its stake in shares of Watts Water Technologies by 0.3% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,470,140 shares of the technology company's stock worth $503,711,000 after acquiring an additional 6,765 shares during the last quarter. Boston Partners boosted its position in shares of Watts Water Technologies by 43.3% in the first quarter. Boston Partners now owns 905,783 shares of the technology company's stock worth $184,708,000 after purchasing an additional 273,628 shares during the period. Geode Capital Management LLC lifted its position in shares of Watts Water Technologies by 20.7% in the second quarter. Geode Capital Management LLC now owns 804,050 shares of the technology company's stock valued at $197,728,000 after acquiring an additional 138,034 shares in the last quarter. Mirova US LLC lifted its stake in Watts Water Technologies by 2.7% in the 2nd quarter. Mirova US LLC now owns 748,328 shares of the technology company's stock worth $184,006,000 after purchasing an additional 19,344 shares in the last quarter. Finally, First Trust Advisors LP grew its holdings in shares of Watts Water Technologies by 0.9% in the second quarter. First Trust Advisors LP now owns 545,724 shares of the technology company's stock valued at $134,188,000 after purchasing an additional 4,689 shares in the last quarter. Hedge funds and other institutional investors own 95.02% of the company's stock.

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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