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

Key Points

• Watts Water Technologies' stock reached a new 52-week high at $261.15, while the latest trade price was $260.56, moving up from a previous close of $252.49.
• Analyst ratings show mixed sentiment, with Northcoast Research downgrading the stock to "neutral" while Stifel Nicolaus increased its price target and maintained a "buy" rating at $290.00.
• The company recently increased its quarterly dividend from $0.43 to $0.52 per share, resulting in an annualized rate of $2.08 and a dividend yield of 0.80%.

Watts Water Technologies, Inc. (NYSE:WTS - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The stock traded as high as $261.15 and last traded at $260.56, with a volume of 147570 shares changing hands. The stock had previously closed at $252.49.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Northcoast Research cut shares of Watts Water Technologies from a "buy" rating to a "neutral" rating in a research note on Friday, May 16th. Stifel Nicolaus increased their price objective on shares of Watts Water Technologies from $275.00 to $290.00 and gave the company a "buy" rating in a research note on Monday, July 21st. Four research analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $234.20.

Watts Water Technologies Trading Down 1.7%

The company has a market cap of $8.61 billion, a price-to-earnings ratio of 29.55, a PEG ratio of 3.72 and a beta of 1.12. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.53 and a current ratio of 2.46. The business's 50 day moving average price is $247.27 and its 200-day moving average price is $223.58.

Watts Water Technologies (NYSE:WTS - Get Free Report) last posted its earnings results on Wednesday, May 7th. The technology company reported $2.37 earnings per share for the quarter, topping the consensus estimate of $2.12 by $0.25. Watts Water Technologies had a net margin of 13.07% and a return on equity of 17.59%. The business had revenue of $558.00 million for the quarter, compared to analyst estimates of $547.58 million. During the same quarter in the prior year, the firm earned $2.33 EPS. The firm's quarterly revenue was down 2.3% compared to the same quarter last year. On average, research analysts forecast that Watts Water Technologies, Inc. will post 9.08 EPS for the current year.

Watts Water Technologies Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 13th. Stockholders of record on Friday, May 30th were issued a $0.52 dividend. This represents a $2.08 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, May 30th. This is a positive change from Watts Water Technologies's previous quarterly dividend of $0.43. Watts Water Technologies's payout ratio is currently 23.83%.

Insider Transactions at Watts Water Technologies

In other news, insider Monica Barry sold 768 shares of the company's stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $245.40, for a total value of $188,467.20. Following the sale, the insider owned 6,236 shares of the company's stock, valued at approximately $1,530,314.40. This represents a 10.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Shashank Patel sold 8,000 shares of the company's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $245.00, for a total transaction of $1,960,000.00. Following the completion of the sale, the chief financial officer directly owned 2,754 shares in the company, valued at approximately $674,730. The trade was a 74.39% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 15,768 shares of company stock valued at $3,841,417. 1.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Watts Water Technologies

Several large investors have recently made changes to their positions in the company. Cerity Partners LLC increased its position in Watts Water Technologies by 0.5% in the 4th quarter. Cerity Partners LLC now owns 12,410 shares of the technology company's stock valued at $2,541,000 after acquiring an additional 58 shares in the last quarter. Johnson Investment Counsel Inc. increased its position in Watts Water Technologies by 0.8% in the 2nd quarter. Johnson Investment Counsel Inc. now owns 9,416 shares of the technology company's stock valued at $2,315,000 after acquiring an additional 71 shares in the last quarter. Mackenzie Financial Corp increased its position in Watts Water Technologies by 2.0% in the 1st quarter. Mackenzie Financial Corp now owns 4,172 shares of the technology company's stock valued at $851,000 after acquiring an additional 80 shares in the last quarter. Cullen Frost Bankers Inc. increased its position in Watts Water Technologies by 156.9% in the 2nd quarter. Cullen Frost Bankers Inc. now owns 131 shares of the technology company's stock valued at $32,000 after acquiring an additional 80 shares in the last quarter. Finally, Versant Capital Management Inc increased its position in Watts Water Technologies by 57.3% in the 1st quarter. Versant Capital Management Inc now owns 225 shares of the technology company's stock valued at $46,000 after acquiring an additional 82 shares in the last quarter. 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.