Watts Water Technologies Inc . (NYSE:WTS) has reached an impressive milestone, with its stock price hitting an all-time high of $222.7. This peak reflects a significant uptrend in the company's market performance, marking a substantial 11.74% increase over the past year. According to InvestingPro data, the company has demonstrated remarkable momentum with an 18.21% gain over the past six months, supported by strong financial health metrics and consistent dividend payments for 39 consecutive years. Investors have shown growing confidence in WTS's strategic initiatives and market position, which have collectively propelled the stock to new heights. The company's ability to innovate and expand its product offerings, coupled with a strong financial outlook, has contributed to this performance. With a healthy gross profit margin of 47.14% and three analysts recently revising earnings estimates upward, WTS shows promising momentum. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top US stocks.
In other recent news, Watts Water Technologies experienced mixed results in its third-quarter earnings. Despite a 4% decline in organic sales due to project timing and destocking activities, the company maintained a strong adjusted operating margin of 17.1% and reported a robust year-to-date free cash flow of $204 million. Seaport Global Securities maintained its Neutral rating on the company's shares, acknowledging a sales and earnings per share (EPS) beat but projecting a 1-2% decline in organic sales for 2024.
In the same vein, Watts Water Technologies is preparing for strategic mergers and acquisitions and potential cost optimization efforts, even as it contemplates the closure of a manufacturing plant in France. Seaport Global Securities has adjusted its EPS estimates for the company, raising the 2024 forecast to $8.75 from $8.65, and the 2025 estimate to $9.01 from $8.90, reflecting improved profits from the Americas.
However, the fourth-quarter EPS estimate for 2024 has been reduced due to a weaker sales outlook, particularly in Europe. Among other recent developments, the company announced the retirement of CFO Shashank Patel, effective March 15, 2025, and the launch of Nexa, a SaaS water management solution expected to generate ongoing subscriptions. These developments are part of the company's efforts to navigate a complex market with strategic initiatives and a focus on cost optimization.
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