NORTH ANDOVER, MA—Kenneth Robert Lepage, General Counsel of Watts Water Technologies Inc . (NYSE:WTS), recently sold shares of the company's Class A Common Stock, according to a filing submitted to the Securities and Exchange Commission. The transactions, which took place on November 6, involved the sale of 2,607 shares at prices ranging from $212.16 to $213.71 per share, amounting to a total of $554,571.
Following these transactions, Lepage now holds 11,457 shares of the company's stock. The sales were executed over multiple transactions, with the prices reflecting a weighted average within the specified range.
"In other recent news, Watts Water Technologies reported mixed third-quarter earnings, despite an EPS beat and strong demand in the Americas. The company experienced a 4% decline in organic sales, primarily due to the timing of projects and destocking activities. However, Watts Water Technologies 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 Watts Water Technologies, noting the company's solid Q3 performance. The firm adjusted its earnings per share (EPS) estimates for Watts Water Technologies, raising the 2024 forecast to $8.75, up from the previous estimate of $8.65, and the 2025 estimate to $9.01 from $8.90.
In other developments, the company is preparing for strategic mergers and acquisitions, cost optimization efforts, and the potential closure of a manufacturing plant in France. Watts Water Technologies also announced the upcoming 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 are among the recent developments at the company."
InvestingPro Insights
The recent stock sale by Kenneth Robert Lepage comes at a time when Watts Water Technologies Inc. (NYSE:WTS) is showing strong financial performance and market positioning. According to InvestingPro data, the company's market capitalization stands at $6.91 billion, with a price-to-earnings ratio of 24.94, indicating investor confidence in the company's earnings potential.
Watts Water Technologies has demonstrated solid revenue growth, with a 12.36% increase over the last twelve months as of Q3 2024, reaching $2.26 billion. This growth is complemented by a healthy gross profit margin of 47.14% and an operating income margin of 17.46%, suggesting efficient cost management and strong pricing power in its markets.
InvestingPro Tips highlight that Watts Water Technologies has maintained dividend payments for 39 consecutive years and has raised its dividend for 12 consecutive years. This consistent dividend policy underscores the company's financial stability and commitment to shareholder returns. The current dividend yield stands at 0.81%, with a notable dividend growth of 19.44% over the last twelve months.
The company's stock has also shown significant momentum, with a 11.32% return over the last week and a 15.34% return over the past year. This performance aligns with the InvestingPro Tip indicating that the stock has seen a significant return over the last week.
It's worth noting that Watts Water Technologies holds more cash than debt on its balance sheet, which provides financial flexibility and reduces risk. This strong financial position is further supported by the fact that the company's liquid assets exceed short-term obligations, as pointed out by another InvestingPro Tip.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Watts Water Technologies, providing a deeper understanding of the company's financial health and market position.
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