Watts Water Technologies (NYSE:WTS) Hits New 12-Month High - Time to Buy?

Key Points

• Watts Water Technologies shares recently reached a new 52-week high at $269.85, with a market capitalization of $9.07 billion and a P/E ratio of 29.23.
• Analysts have mixed ratings on the stock: while Deutsche Bank and Northcoast Research issued "hold" and "neutral" ratings, respectively, Wall Street Zen upgraded it to a "strong buy" and Stifel Nicolaus raised their price target to $300.
• The company reported strong earnings, with $3.09 EPS for the last quarter, exceeding analysts' expectations, and announced a quarterly dividend of $0.52, reflecting an annual yield of 0.8%.

Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report) shares reached a new 52-week high on Tuesday . The stock traded as high as $269.85 and last traded at $268.44, with a volume of 1681 shares traded. The stock had previously closed at $266.98.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the stock. Northcoast Research cut shares of Watts Water Technologies from a "buy" rating to a "neutral" rating in a research report on Friday, May 16th. Stifel Nicolaus raised their price target on shares of Watts Water Technologies from $290.00 to $300.00 and gave the stock a "buy" rating in a research report on Friday, August 8th. Wall Street Zen raised shares of Watts Water Technologies from a "hold" rating to a "strong-buy" rating in a research note on Saturday, August 9th. Finally, Deutsche Bank Aktiengesellschaft restated a "hold" rating on shares of Watts Water Technologies in a report on Friday, August 8th. Three research analysts have rated the stock with a hold rating, one has given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $245.50.

Watts Water Technologies Stock Performance

The company has a market cap of $9.05 billion, a P/E ratio of 29.16, a PEG ratio of 3.32 and a beta of 1.13. The stock's 50-day moving average price is $253.02 and its 200-day moving average price is $227.98. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.59 and a quick ratio of 1.63.

Watts Water Technologies (NYSE:WTS - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The technology company reported $3.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.68 by $0.41. Watts Water Technologies had a return on equity of 18.11% and a net margin of 13.63%. The firm had revenue of $643.70 million for the quarter, compared to analysts' expectations of $612.15 million. During the same period in the prior year, the business earned $2.46 EPS. The company's revenue for the quarter was up 7.8% compared to the same quarter last year. Equities analysts anticipate that Watts Water Technologies, Inc. will post 9.08 EPS for the current year.

Watts Water Technologies Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 29th will be paid a $0.52 dividend. The ex-dividend date is Friday, August 29th. This represents a $2.08 annualized dividend and a yield of 0.8%. Watts Water Technologies's dividend payout ratio (DPR) is currently 22.37%.

Insider Activity

In related news, major shareholder Timothy P. Horne sold 7,000 shares of the firm's stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of $241.85, for a total transaction of $1,692,950.00. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Joseph T. Noonan sold 713 shares of Watts Water Technologies stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $274.45, for a total value of $195,682.85. Following the completion of the sale, the director owned 1,194 shares in the company, valued at approximately $327,693.30. This represents a 37.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. 1.00% of the stock is owned by company insiders.

Institutional Trading of Watts Water Technologies

Hedge funds have recently bought and sold shares of the company. Kayne Anderson Rudnick Investment Management LLC raised its stake in Watts Water Technologies by 18.6% during the fourth quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,463,375 shares of the technology company's stock valued at $500,804,000 after purchasing an additional 386,333 shares in the last quarter. Norges Bank acquired a new position in Watts Water Technologies during the 2nd quarter valued at approximately $80,386,000. Boston Partners raised its stake in shares of Watts Water Technologies by 43.3% during the 1st quarter. Boston Partners now owns 905,783 shares of the technology company's stock valued at $184,708,000 after buying an additional 273,628 shares during the last quarter. Nuveen LLC purchased a new position in shares of Watts Water Technologies in the 1st quarter valued at about $49,199,000. Finally, Vaughan Nelson Investment Management L.P. acquired a new stake in Watts Water Technologies in the 2nd quarter worth about $50,400,000. 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.