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

Key Points

• Watts Water Technologies beat expectations in its latest quarter, reporting EPS of $3.04 versus the $2.72 consensus and revenue of $677.3 million versus estimates of $638.13 million. Revenue rose 21.4% year over year from the same period last year.
• The company also announced a quarterly dividend of $0.63 per share, payable on June 15 to shareholders of record on June 1. That works out to an annualized dividend of $2.52 and a yield of about 0.8%.
• Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $330.11. Recent insider selling and continued strong institutional ownership were also highlighted in the report.

Watts Water Technologies (NYSE:WTS - Get Free Report) announced its quarterly earnings results on Wednesday. The technology company reported $3.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.72 by $0.32, FiscalAI reports. 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 period in the prior year, the firm posted $2.37 earnings per share. The company's revenue for the quarter was up 21.4% on a year-over-year basis.

Watts Water Technologies Price Performance

WTS traded up $2.84 on Friday, reaching $296.98. The company had a trading volume of 328,238 shares, compared to its average volume of 305,560. The business has a 50 day simple moving average of $301.64 and a 200 day simple moving average of $292.71. The company has a market cap of $9.90 billion, a price-to-earnings ratio of 27.17, a P/E/G ratio of 2.66 and a beta of 1.20. The company has a debt-to-equity ratio of 0.09, a quick ratio of 1.49 and a current ratio of 2.72. Watts Water Technologies has a 52-week low of $230.47 and a 52-week high of $345.17.

Watts Water Technologies Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be paid a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Monday, June 1st. Watts Water Technologies's dividend payout ratio (DPR) is currently 20.45%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. Barclays increased their price target on shares of Watts Water Technologies from $300.00 to $323.00 and gave the stock an "equal weight" rating in a report on Friday, February 13th. KeyCorp increased their price target on shares of Watts Water Technologies from $340.00 to $360.00 and gave the stock an "overweight" rating in a report on Thursday, February 12th. 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. HSBC began coverage on shares of Watts Water Technologies in a research note on Tuesday, January 27th. They issued a "buy" rating on the stock. Finally, 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. Four analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, Watts Water Technologies has an average rating of "Hold" and a consensus price target of $330.11.

Insiders Place Their Bets

In other Watts Water Technologies news, CEO Robert J. Pagano, Jr. sold 16,066 shares of Watts Water Technologies stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $327.31, for a total transaction of $5,258,562.46. Following the transaction, the chief executive officer directly owned 191,202 shares of the company's stock, valued at approximately $62,582,326.62. This trade represents a 7.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Timothy P. Horne sold 7,500 shares of Watts Water Technologies stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $330.04, for a total transaction of $2,475,300.00. Following the transaction, the insider directly owned 7,500 shares in the company, valued at $2,475,300. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 29,674 shares of company stock valued at $9,669,838 over the last three months. Corporate insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Corient Private Wealth LLC raised its stake in shares of Watts Water Technologies by 36.1% during the fourth quarter. Corient Private Wealth LLC now owns 6,140 shares of the technology company's stock worth $1,695,000 after acquiring an additional 1,627 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its stake in shares of Watts Water Technologies by 16.4% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 2,896 shares of the technology company's stock worth $799,000 after acquiring an additional 407 shares in the last quarter. Vident Advisory LLC raised its stake in shares of Watts Water Technologies by 45.2% during the fourth quarter. Vident Advisory LLC now owns 3,008 shares of the technology company's stock worth $830,000 after acquiring an additional 936 shares in the last quarter. Fuller & Thaler Asset Management Inc. raised its stake in shares of Watts Water Technologies by 37.2% during the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 31,969 shares of the technology company's stock worth $8,824,000 after acquiring an additional 8,671 shares in the last quarter. Finally, XTX Topco Ltd purchased a new position in shares of Watts Water Technologies during the fourth quarter worth approximately $392,000. 95.02% of the stock is owned by hedge funds and other institutional investors.

Watts Water Technologies Company Profile

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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