Zacks Investment Research Lowers Watts Water Technologies, Inc. (WTS) to Hold

Zacks Investment Research downgraded shares of Watts Water Technologies, Inc. (NYSE:WTS) from a buy rating to a hold rating in a research note issued to investors on Thursday.

According to Zacks, “Watts Water expects organic sales growth in the second half of 2017 to improve as compared with the first-half performance. In Americas, it anticipates consistent growth from relatively healthy end markets with AERCO. The company’s continuous focus on productivity and cost savings actions also remain tailwinds. The company has a positive record of earnings surprises in the last few quarters. Its estimates have mioved up lately. However, Watts Water's top line remains challenged by foreign-exchange headwinds. Also, raw material price inflation might impact margins in the upcoming quarters. Weak boiler demand and economic turmoil in Europe also remain headwinds. Moreover, its share price underperformed the industry in the past year.”

Other analysts also recently issued reports about the company. BidaskClub downgraded Watts Water Technologies from a hold rating to a sell rating in a research report on Monday, July 31st. Robert W. Baird reiterated a hold rating and set a $71.00 target price on shares of Watts Water Technologies in a research report on Wednesday. Stifel Nicolaus assumed coverage on Watts Water Technologies in a research report on Monday, September 18th. They set a buy rating and a $72.00 target price for the company. Cowen and Company reiterated a hold rating and set a $58.00 target price on shares of Watts Water Technologies in a research report on Thursday, September 28th. Finally, Oppenheimer Holdings, Inc. reiterated a hold rating on shares of Watts Water Technologies in a research report on Wednesday, June 14th. One analyst has rated the stock with a sell rating, five have issued a hold rating and three have given a buy rating to the stock. Watts Water Technologies has an average rating of Hold and a consensus price target of $70.83.

Watts Water Technologies (NYSE:WTS) opened at 69.45 on Thursday. The firm has a market capitalization of $2.37 billion, a price-to-earnings ratio of 27.13 and a beta of 1.08. Watts Water Technologies has a 52 week low of $58.35 and a 52 week high of $71.05. The company has a 50 day moving average price of $65.18 and a 200-day moving average price of $63.42.

Watts Water Technologies (NYSE:WTS) last released its quarterly earnings results on Wednesday, August 2nd. The technology company reported $0.83 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.79 by $0.04. The business had revenue of $378.50 million during the quarter, compared to the consensus estimate of $379.51 million. Watts Water Technologies had a return on equity of 12.84% and a net margin of 6.27%. The firm’s quarterly revenue was up 2.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.75 EPS. Equities analysts predict that Watts Water Technologies will post $2.99 earnings per share for the current year.

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The business also recently announced a quarterly dividend, which was paid on Friday, September 15th. Stockholders of record on Friday, September 1st were given a dividend of $0.19 per share. The ex-dividend date of this dividend was Wednesday, August 30th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 1.09%. Watts Water Technologies’s payout ratio is 29.69%.

In other news, insider Elie Melhem sold 3,306 shares of the company’s stock in a transaction on Friday, August 25th. The stock was sold at an average price of $62.11, for a total transaction of $205,335.66. Following the completion of the sale, the insider now directly owns 32,128 shares in the company, valued at approximately $1,995,470.08. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.10% of the company’s stock.

Several institutional investors have recently bought and sold shares of the company. Public Employees Retirement System of Ohio raised its holdings in shares of Watts Water Technologies by 0.8% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 2,038 shares of the technology company’s stock worth $129,000 after buying an additional 17 shares in the last quarter. Suntrust Banks Inc. raised its holdings in shares of Watts Water Technologies by 1.0% during the 2nd quarter. Suntrust Banks Inc. now owns 3,290 shares of the technology company’s stock worth $207,000 after buying an additional 31 shares in the last quarter. Manchester Capital Management LLC raised its holdings in shares of Watts Water Technologies by 0.5% during the 2nd quarter. Manchester Capital Management LLC now owns 11,040 shares of the technology company’s stock worth $698,000 after buying an additional 50 shares in the last quarter. South State Corp raised its holdings in shares of Watts Water Technologies by 1.5% during the 2nd quarter. South State Corp now owns 3,347 shares of the technology company’s stock worth $212,000 after buying an additional 50 shares in the last quarter. Finally, Eqis Capital Management Inc. raised its holdings in shares of Watts Water Technologies by 1.1% during the 2nd quarter. Eqis Capital Management Inc. now owns 5,932 shares of the technology company’s stock worth $375,000 after buying an additional 64 shares in the last quarter. 77.64% of the stock is owned by institutional investors.

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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Analyst Recommendations for Watts Water Technologies (NYSE:WTS)

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