Robert J. Pagano Jr., President and CEO of Watts Water Technologies Inc . (NYSE:WTS), recently sold a significant portion of his holdings in the company. On November 6, Pagano disposed of 20,810 shares of Class A Common Stock in two separate transactions. The shares were sold at prices ranging from $212.13 to $212.86, amounting to a total transaction value of approximately $4.4 million.
Following these sales, Pagano's direct ownership in the company stands at 176,045 shares. The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission.
In other recent news, Watts Water Technologies demonstrated a strong financial performance with its Q3 earnings surpassing expectations, primarily due to robust demand in the Americas and profit growth. Seaport Global Securities maintained its Neutral rating on the company's shares despite a projected 1-2% decline in organic sales for 2024. The firm also adjusted its earnings per share (EPS) estimates for the company, raising the 2024 forecast to $8.75 and the 2025 estimate to $9.01.
However, the fourth-quarter EPS estimate for 2024 has been reduced due to a weaker sales outlook, particularly in Europe. In other developments, Watts Water Technologies reported a 4% decline in organic sales in Q3, attributed to the timing of projects and destocking activities. Despite this, the company maintained a strong adjusted operating margin of 17.1% and reported a robust year-to-date free cash flow of $204 million.
The company is also preparing for strategic mergers and acquisitions and potential cost optimization efforts. Watts Water Technologies announced the potential closure of a manufacturing plant in France and the retirement of CFO Shashank Patel, effective March 15, 2025. As part of the company's future plans, the launch of Nexa, a SaaS water management solution, is expected to generate ongoing subscriptions.
InvestingPro Insights
While Robert J. Pagano Jr.'s recent sale of Watts Water Technologies Inc. (NYSE:WTS) shares might raise eyebrows, a closer look at the company's financials reveals a robust underlying business. According to InvestingPro data, Watts Water Technologies boasts a market capitalization of $6.91 billion and a price-to-earnings ratio of 23.84, suggesting investors are willing to pay a premium for the company's earnings.
The company's financial health is further underscored by two key InvestingPro Tips. Firstly, Watts Water Technologies holds more cash than debt on its balance sheet, indicating strong liquidity. Secondly, the company has maintained dividend payments for an impressive 39 consecutive years, demonstrating a commitment to shareholder returns.
These factors may help explain why the stock has shown resilience, with a one-year price total return of 12.04% as of the most recent data. The company's revenue growth of 12.36% over the last twelve months also points to ongoing business expansion.
For investors seeking a deeper understanding of Watts Water Technologies' potential, InvestingPro offers 10 additional tips that could provide valuable insights into the company's prospects. These tips, along with real-time metrics, can help investors make more informed decisions about their holdings in WTS.
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