Zacks Investment Research cut shares of Watts Water Technologies (NYSE:WTS) from a buy rating to a hold rating in a report published on Monday.
According to Zacks, “For 2018, Watts Water estimated that its organic sales to increase around 3% operating margin to expand between 50 and 70 basis points in the year due to higher volume and pricing actions. In addition, restructuring benefits will drive margin performance in 2018. Also, Watts Water’s focus on new product innovation will drive growth. Further, the company will benefit in 2018 from the U.S. tax reform. Upbeat trends in ABI and Dodge Momentum Indexes signal positive conditions in the non-residential market which bodes well for Watts Water’s performance. Moreover, the stock has outperformed the industry over the past year. However, Watts Water's top-line remains challenged by foreign-exchange headwinds and delivery timing issues. Also, raw material price inflation might dent margins in the upcoming quarters.”
Other equities analysts have also recently issued reports about the company. Northcoast Research set a $90.00 price objective on Watts Water Technologies and gave the company a buy rating in a report on Friday, January 19th. Stifel Nicolaus reaffirmed a buy rating and issued a $95.00 price objective (up from $85.00) on shares of Watts Water Technologies in a report on Tuesday, January 16th. Boenning Scattergood reaffirmed a buy rating on shares of Watts Water Technologies in a report on Monday, November 20th. Janney Montgomery Scott raised Watts Water Technologies from a neutral rating to a buy rating in a report on Wednesday, February 14th. Finally, TheStreet cut Watts Water Technologies from a b+ rating to a c+ rating in a report on Monday, February 12th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and three have given a buy rating to the stock. The company currently has a consensus rating of Hold and a consensus target price of $80.40.
Shares of Watts Water Technologies stock opened at $79.70 on Monday. The stock has a market capitalization of $2,763.00, a price-to-earnings ratio of 37.59, a P/E/G ratio of 1.86 and a beta of 1.14. Watts Water Technologies has a one year low of $59.15 and a one year high of $84.25. The company has a quick ratio of 1.60, a current ratio of 2.39 and a debt-to-equity ratio of 0.57.
Watts Water Technologies (NYSE:WTS) last announced its quarterly earnings data on Monday, February 12th. The technology company reported $0.74 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.73 by $0.01. The firm had revenue of $366.30 million during the quarter, compared to analysts’ expectations of $365.35 million. Watts Water Technologies had a return on equity of 12.93% and a net margin of 5.02%. The company’s quarterly revenue was up 7.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.64 EPS. equities analysts predict that Watts Water Technologies will post 3.63 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Friday, March 16th. Stockholders of record on Friday, March 2nd were issued a dividend of $0.19 per share. The ex-dividend date of this dividend was Thursday, March 1st. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.95%. Watts Water Technologies’s dividend payout ratio (DPR) is currently 35.85%.
In other news, insider Robert J. Pagano, Jr. sold 16,248 shares of the business’s stock in a transaction on Wednesday, February 21st. The stock was sold at an average price of $76.89, for a total transaction of $1,249,308.72. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Timothy P. Horne sold 10,168 shares of the business’s stock in a transaction on Thursday, March 8th. The stock was sold at an average price of $77.00, for a total value of $782,936.00. Following the transaction, the insider now directly owns 39,832 shares of the company’s stock, valued at approximately $3,067,064. The disclosure for this sale can be found here. Insiders have sold a total of 42,344 shares of company stock valued at $3,239,332 in the last three months. 1.10% of the stock is owned by insiders.
Several institutional investors have recently bought and sold shares of WTS. Crossmark Global Holdings Inc. acquired a new position in shares of Watts Water Technologies during the 3rd quarter worth $375,000. Jennison Associates LLC acquired a new position in Watts Water Technologies in the 3rd quarter worth about $620,000. BNP Paribas Arbitrage SA increased its holdings in Watts Water Technologies by 39.4% in the 3rd quarter. BNP Paribas Arbitrage SA now owns 15,734 shares of the technology company’s stock worth $1,089,000 after purchasing an additional 4,451 shares in the last quarter. Sei Investments Co. increased its holdings in Watts Water Technologies by 34.6% in the 3rd quarter. Sei Investments Co. now owns 7,335 shares of the technology company’s stock worth $507,000 after purchasing an additional 1,884 shares in the last quarter. Finally, Municipal Employees Retirement System of Michigan increased its holdings in Watts Water Technologies by 46.3% in the 3rd quarter. Municipal Employees Retirement System of Michigan now owns 12,300 shares of the technology company’s stock worth $851,000 after purchasing an additional 3,890 shares in the last quarter. 77.18% of the stock is owned by institutional investors.
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About Watts Water Technologies
Watts Water Technologies, Inc is a supplier of products and solutions that manage and conserve the flow of fluids and energy into, through and out of buildings in the residential and commercial markets. The Company, through its subsidiary, Watts Regulator Co, is engaged in manufacturing products and systems focused on the control, conservation and quality of water, and safety of the people using it.
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