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

Watts Water Technologies (NYSE:WTS) announced its quarterly earnings results on Wednesday. The technology company reported $3.04 earnings per share (EPS) for the quarter, beating 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 business had revenue of $677.30 million during the quarter, compared to the consensus estimate of $638.13 million. During the same quarter last year, the firm posted $2.37 EPS. The business’s revenue was up 21.4% compared to the same quarter last year.

Watts Water Technologies Price Performance

Shares of WTS stock traded up $2.84 during trading hours on Friday, hitting $296.98. The company’s stock had a trading volume of 328,238 shares, compared to its average volume of 305,560. The business has a fifty day moving average of $301.64 and a 200-day moving average of $292.71. The stock 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. Watts Water Technologies has a twelve month low of $230.47 and a twelve month high of $345.17. The company has a current ratio of 2.72, a quick ratio of 1.49 and a debt-to-equity ratio of 0.09.

Watts Water Technologies Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, June 1st. Watts Water Technologies’s dividend payout ratio is 20.45%.

Insider Activity

In related news, major shareholder Timothy P. Horne sold 7,500 shares of the company’s stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $330.04, for a total value of $2,475,300.00. Following the sale, the insider owned 7,500 shares of the company’s stock, valued at approximately $2,475,300. This represents a 50.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Robert J. Pagano, Jr. sold 16,066 shares of the stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $327.31, for a total value of $5,258,562.46. Following the sale, the chief executive officer owned 191,202 shares in the company, valued at approximately $62,582,326.62. This trade represents a 7.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 29,674 shares of company stock worth $9,669,838. 1.00% of the stock is owned by corporate insiders.

Institutional Trading of Watts Water Technologies

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Boston Partners raised its stake in Watts Water Technologies by 2.2% in the 3rd quarter. Boston Partners now owns 907,336 shares of the technology company’s stock valued at $253,211,000 after purchasing an additional 19,247 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of 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 worth $144,261,000 after purchasing an additional 1,418 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Watts Water Technologies by 34.4% during the third quarter. Invesco Ltd. now owns 469,508 shares of the technology company’s stock worth $131,124,000 after buying an additional 120,090 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Watts Water Technologies by 17.5% during the third quarter. AQR Capital Management LLC now owns 326,139 shares of the technology company’s stock worth $90,226,000 after buying an additional 48,470 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its position in shares of Watts Water Technologies by 79.4% in 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 last quarter. Hedge funds and other institutional investors own 95.02% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on WTS shares. TD Cowen restated a “hold” rating on shares of Watts Water Technologies in a research report on Thursday, January 8th. HSBC initiated coverage on Watts Water Technologies in a research note on Tuesday, January 27th. They set a “buy” rating on the stock. Barclays upped their price target on Watts Water Technologies from $300.00 to $323.00 and gave the stock an “equal weight” rating in a report on Friday, February 13th. Zacks Research downgraded Watts Water Technologies from a “strong-buy” rating to a “hold” rating in a research note on Friday, February 27th. Finally, Royal Bank Of Canada boosted their target price on Watts Water Technologies from $318.00 to $323.00 and gave the stock a “sector perform” rating in a research report on Friday. Four research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $330.11.

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.