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

Watts Water Technologies, Inc. (NYSE:WTS) shares hit a new 52-week high during mid-day trading on Friday . The company traded as high as $290.51 and last traded at $286.2530, with a volume of 7359 shares. The stock had previously closed at $286.33.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on WTS. Jefferies Financial Group initiated coverage on shares of Watts Water Technologies in a research note on Friday, December 12th. They set a “hold” rating and a $300.00 price objective for the company. Royal Bank Of Canada started coverage on Watts Water Technologies in a research report on Monday. They set a “sector perform” rating and a $288.00 price target for the company. Wall Street Zen downgraded Watts Water Technologies from a “strong-buy” rating to a “buy” rating in a research report on Saturday, December 13th. Wells Fargo & Company set a $275.00 target price on shares of Watts Water Technologies in a research note on Thursday. Finally, Barclays upped their target price on shares of Watts Water Technologies from $287.00 to $300.00 and gave the company an “equal weight” rating in a report on Friday, November 7th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $280.00.

Watts Water Technologies Price Performance

The company has a 50-day moving average of $276.05 and a two-hundred day moving average of $271.31. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.83 and a quick ratio of 1.84. The stock has a market capitalization of $9.58 billion, a PE ratio of 29.65, a P/E/G ratio of 2.72 and a beta of 1.24.

Watts Water Technologies (NYSE:WTS) last posted its quarterly earnings data on Wednesday, November 5th. The technology company reported $2.50 EPS for the quarter, beating analysts’ consensus estimates of $2.29 by $0.21. Watts Water Technologies had a net margin of 13.79% and a return on equity of 18.31%. The company had revenue of $611.70 million during the quarter, compared to the consensus estimate of $576.20 million. During the same quarter in the prior year, the company posted $2.03 EPS. The company’s quarterly revenue was up 12.5% compared to the same quarter last year. Sell-side analysts predict that Watts Water Technologies, Inc. will post 9.08 EPS for the current fiscal year.

Watts Water Technologies Announces Dividend

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

Insider Buying and Selling at Watts Water Technologies

In other 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 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 document filed with the SEC, which is available at this link. Also, CAO Virginia A. Halloran sold 605 shares of the stock in a transaction that occurred on 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 directly owned 13,412 shares of the company’s stock, valued at approximately $3,712,173.36. This trade represents a 4.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 15,605 shares of company stock valued at $4,296,387 over the last three months. Corporate insiders own 1.00% of the company’s stock.

Institutional Investors Weigh In On Watts Water Technologies

Several institutional investors have recently bought and sold shares of WTS. MTM Investment Management LLC purchased a new position in shares of Watts Water Technologies in the 2nd quarter valued at $25,000. Wexford Capital LP purchased a new position in Watts Water Technologies in the third quarter valued at about $26,000. Advisory Services Network LLC acquired a new position in shares of Watts Water Technologies during the third quarter worth about $29,000. Cullen Frost Bankers Inc. boosted its position 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 worth $32,000 after buying an additional 80 shares during the period. Finally, Stance Capital LLC acquired a new stake in shares of Watts Water Technologies in the third quarter valued at about $62,000. 95.02% of the stock is currently owned by hedge funds and other 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.