Watts Water Technologies (NYSE:WTS) Hits New 1-Year High – Should You Buy?

Watts Water Technologies, Inc. (NYSE:WTS)’s stock price reached a new 52-week high during trading on Thursday . The stock traded as high as $292.99 and last traded at $290.6720, with a volume of 113897 shares changing hands. The stock had previously closed at $290.03.

Analysts Set New Price Targets

Several analysts have issued reports on WTS shares. Jefferies Financial Group started coverage on Watts Water Technologies in a report on Friday, December 12th. They issued a “hold” rating and a $300.00 target price for the company. Cowen reissued a “hold” rating on shares of Watts Water Technologies in a report on Thursday, January 8th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Watts Water Technologies in a research note on Monday, December 29th. Zacks Research upgraded shares of Watts Water Technologies from a “hold” rating to a “strong-buy” rating in a report on Monday, December 29th. Finally, Royal Bank Of Canada began coverage on shares of Watts Water Technologies in a report on Monday, January 5th. They set a “sector perform” rating and a $288.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Watts Water Technologies currently has a consensus rating of “Hold” and a consensus target price of $280.00.

Watts Water Technologies Price Performance

The company has a market cap of $9.93 billion, a price-to-earnings ratio of 30.74, a PEG ratio of 2.77 and a beta of 1.24. The stock’s 50-day simple moving average is $278.30 and its 200 day simple moving average is $273.22. The company has a quick ratio of 1.84, a current ratio of 2.83 and a debt-to-equity ratio of 0.10.

Watts Water Technologies (NYSE:WTS) last released its quarterly earnings results on Wednesday, November 5th. The technology company reported $2.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.29 by $0.21. The business had revenue of $611.70 million for the quarter, compared to the consensus estimate of $576.20 million. Watts Water Technologies had a net margin of 13.79% and a return on equity of 18.31%. The business’s revenue was up 12.5% on a year-over-year basis. During the same period in the previous year, the firm earned $2.03 EPS. On average, equities research analysts anticipate that Watts Water Technologies, Inc. will post 9.08 EPS for the current fiscal year.

Watts Water Technologies Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, December 15th. Shareholders of record on Monday, December 1st were paid a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, December 1st. Watts Water Technologies’s dividend payout ratio is 21.47%.

Insiders Place Their Bets

In other Watts Water Technologies news, major shareholder Timothy P. Horne sold 6,814 shares of Watts Water Technologies stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $272.32, for a total value of $1,855,588.48. Following the completion of the transaction, the insider directly owned 15,000 shares of the company’s stock, valued at $4,084,800. The trade was a 31.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Virginia A. Halloran sold 605 shares of the business’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $276.78, for a total transaction of $167,451.90. Following the sale, the chief accounting officer owned 13,412 shares in the company, valued at $3,712,173.36. This trade represents a 4.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 15,605 shares of company stock valued at $4,296,387 over the last ninety days. Insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Wexford Capital LP acquired a new stake in Watts Water Technologies during the 3rd quarter worth approximately $26,000. MTM Investment Management LLC purchased a new stake in shares of Watts Water Technologies during the second quarter worth $25,000. Advisory Services Network LLC purchased a new stake in shares of Watts Water Technologies during the third quarter worth $29,000. Cullen Frost Bankers Inc. raised its stake in shares of Watts Water Technologies by 156.9% in the second 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, Stance Capital LLC purchased a new position in Watts Water Technologies in the third quarter valued at $62,000. Institutional investors and hedge funds own 95.02% of the company’s stock.

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.