Watts Water Technologies (NYSE:WTS) Releases Earnings Results, Beats Estimates By $0.32 EPS

Key Points

• Watts Water Technologies exceeded earnings expectations, reporting quarterly EPS of $3.66 versus the $3.34 analyst consensus. Revenue increased 18.6% year over year, while net margin was 14.32%.
• Shares rose $4.64 to $362.73 following the results, near the company’s $394.54 one-year high. Analysts maintain a consensus “Hold” rating with an average price target of $345.30.
• The company declared a quarterly dividend of $0.63 per share, equivalent to $2.52 annually and a 0.7% yield. Institutional investors own approximately 95% of the stock, while recent insider transactions involved sales.

Watts Water Technologies (NYSE:WTS - Get Free Report) announced its quarterly earnings results on Wednesday. The technology company reported $3.66 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.34 by $0.32, Zacks reports. Watts Water Technologies had a net margin of 14.32% and a return on equity of 18.92%. The business's revenue was up 18.6% on a year-over-year basis. During the same period in the prior year, the company posted $3.09 EPS.

Watts Water Technologies Price Performance

Shares of Watts Water Technologies stock traded up $4.64 during trading hours on Wednesday, reaching $362.73. The company's stock had a trading volume of 295,073 shares, compared to its average volume of 199,642. The firm has a 50 day moving average price of $343.17 and a 200-day moving average price of $318.23. Watts Water Technologies has a one year low of $251.17 and a one year high of $394.54. The company has a debt-to-equity ratio of 0.09, a current ratio of 2.72 and a quick ratio of 1.62. The stock has a market cap of $12.11 billion, a P/E ratio of 31.83, a P/E/G ratio of 3.09 and a beta of 1.15.

Watts Water Technologies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.63 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.7%. Watts Water Technologies's payout ratio is 23.06%.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Weiss Ratings downgraded shares of Watts Water Technologies from a "buy (b+)" rating to a "buy (b)" rating in a report on Monday, May 11th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $358.00 target price on shares of Watts Water Technologies in a report on Friday, May 8th. Stifel Nicolaus boosted their target price on Watts Water Technologies from $379.00 to $403.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Robert W. Baird set a $330.00 price target on Watts Water Technologies in a research note on Friday, May 8th. Finally, KeyCorp raised their price target on Watts Water Technologies from $360.00 to $380.00 and gave the company an "overweight" rating in a report on Monday, July 13th. Five analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $345.30.

Insider Transactions at Watts Water Technologies

In related news, Director Michael J. Dubose sold 398 shares of Watts Water Technologies stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $309.63, for a total value of $123,232.74. Following the completion of the transaction, the director 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 legal filing with the SEC, which is accessible through this hyperlink. Also, insider Elie Melhem sold 2,257 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $301.00, for a total value of $679,357.00. Following the sale, the insider directly owned 8,963 shares in the company, valued at $2,697,863. The trade was a 20.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.00% of the stock is currently owned by company insiders.

Institutional Trading of Watts Water Technologies

Institutional investors have recently bought and sold shares of the stock. Boston Partners raised its stake in shares of Watts Water Technologies by 2.2% in the third quarter. Boston Partners now owns 907,336 shares of the technology company's stock valued at $253,211,000 after acquiring an additional 19,247 shares during the period. Dimensional Fund Advisors LP grew its holdings in Watts Water Technologies by 0.3% during the 4th quarter. Dimensional Fund Advisors LP now owns 522,624 shares of the technology company's stock valued at $144,261,000 after purchasing an additional 1,418 shares during the last quarter. Invesco Ltd. raised its position in Watts Water Technologies by 34.4% in the 3rd quarter. Invesco Ltd. now owns 469,508 shares of the technology company's stock worth $131,124,000 after purchasing an additional 120,090 shares during the period. AQR Capital Management LLC lifted its stake in Watts Water Technologies by 17.5% in the third quarter. AQR Capital Management LLC now owns 326,139 shares of the technology company's stock worth $90,226,000 after purchasing an additional 48,470 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in shares of Watts Water Technologies by 79.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 282,830 shares of the technology company's stock valued at $78,067,000 after buying an additional 125,218 shares during the period. 95.02% of the stock is currently owned by institutional investors.

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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