Watts Water Technologies (NYSE:WTS) Shares Up 6.3% on Earnings Beat

Shares of Watts Water Technologies, Inc. (NYSE:WTS) rose 6.3% during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $345.17 and last traded at $334.6210. Approximately 100,250 shares were traded during trading, a decline of 44% from the average daily volume of 177,983 shares. The stock had previously closed at $314.75.

The technology company reported $2.62 EPS for the quarter, beating the consensus estimate of $2.36 by $0.26. The company had revenue of $625.10 million for the quarter, compared to analyst estimates of $610.40 million. Watts Water Technologies had a return on equity of 18.55% and a net margin of 13.98%.Watts Water Technologies’s quarterly revenue was up 15.7% compared to the same quarter last year. During the same period last year, the company earned $2.05 earnings per share.

Watts Water Technologies Dividend Announcement

The company also recently announced a monthly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 27th will be issued a dividend of $0.52 per share. The ex-dividend date of this dividend is Friday, February 27th. This represents a c) dividend on an annualized basis and a dividend yield of 1.9%. Watts Water Technologies’s dividend payout ratio is presently 20.45%.

Watts Water Technologies News Summary

Here are the key news stories impacting Watts Water Technologies this week:

• Positive Sentiment: Q4 results beat expectations — management reported an EPS beat and revenue ahead of consensus, with year‑over‑year top‑line growth and healthy margins; this is the primary fundamental driver cited by coverage. Q4 Results Presentation
• Positive Sentiment: Company raised FY‑2026 revenue guidance to roughly $2.6–$2.7 billion (above the prior consensus ~ $2.5B), signaling management confidence in demand recovery and growth trajectory. (Guidance update reported 2/12/2026.)
• Positive Sentiment: Data center momentum and strategic M&A are being highlighted as durable growth drivers — company commentary and analyst write‑ups point to secular demand in critical infrastructure and bolt‑on acquisitions supporting margin expansion. Deep Dive: Data Center Momentum & M&A
• Neutral Sentiment: Full earnings‑call transcripts and the investor presentation are available for detail on segment trends, margin outlook and cash deployment — useful for investors who want to confirm management’s cadence and forward assumptions. Earnings Call Transcript
• Neutral Sentiment: Analyst notes and media coverage are providing varied takes on the industrial goods peer group and WTS’s positioning; these pieces summarize catalysts but don’t show a clear consensus upgrade/downgrade trend yet. Analysts Offer Insights
• Negative Sentiment: Despite positives, the stock may be pulling back because of profit‑taking after a strong run (near its 52‑week high), above‑average volume and a stretched valuation (P/E ~32). Those factors can pressure the share price even when fundamentals improve.

Wall Street Analysts Forecast Growth

WTS has been the subject of several research reports. Weiss Ratings reiterated a “buy (b)” rating on shares of Watts Water Technologies in a research report on Monday, December 29th. Stifel Nicolaus upped their target price on shares of Watts Water Technologies from $320.00 to $389.00 and gave the stock a “buy” rating in a report on Friday. Wall Street Zen raised shares of Watts Water Technologies from a “buy” rating to a “strong-buy” rating in a research note on Saturday, January 10th. Robert W. Baird set a $361.00 price objective on shares of Watts Water Technologies in a research note on Friday. Finally, HSBC started coverage on shares of Watts Water Technologies in a report on Tuesday, January 27th. They issued a “buy” rating for the company. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $334.11.

Insider Buying and Selling

In related news, CAO Virginia A. Halloran sold 605 shares of the stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $276.78, for a total value of $167,451.90. Following the completion of the transaction, the chief accounting officer directly owned 13,412 shares in the company, valued at approximately $3,712,173.36. This represents a 4.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, major shareholder Timothy P. Horne sold 6,814 shares of the firm’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $272.32, for a total value of $1,855,588.48. Following the sale, the insider directly owned 15,000 shares of the company’s stock, valued at approximately $4,084,800. This trade represents a 31.24% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 8,611 shares of company stock valued at $2,347,509 in the last 90 days. Insiders own 1.00% of the company’s stock.

Institutional Trading of Watts Water Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WTS. Norges Bank acquired a new position in Watts Water Technologies in the 4th quarter valued at about $100,627,000. Cartenna Capital LP acquired a new stake in shares of Watts Water Technologies during the third quarter worth about $47,478,000. AQR Capital Management LLC boosted its stake in shares of Watts Water Technologies by 148.3% in the second quarter. AQR Capital Management LLC now owns 277,669 shares of the technology company’s stock valued at $68,276,000 after purchasing an additional 165,837 shares during the period. Allianz Asset Management GmbH grew its holdings in shares of Watts Water Technologies by 2,366.7% in the second quarter. Allianz Asset Management GmbH now owns 153,282 shares of the technology company’s stock valued at $37,691,000 after purchasing an additional 147,068 shares in the last quarter. Finally, UBS Group AG increased its stake in Watts Water Technologies by 223.0% during the 3rd quarter. UBS Group AG now owns 202,250 shares of the technology company’s stock worth $56,484,000 after buying an additional 139,637 shares during the period. Hedge funds and other institutional investors own 95.02% of the company’s stock.

Watts Water Technologies Stock Performance

The company has a current ratio of 2.51, a quick ratio of 1.84 and a debt-to-equity ratio of 0.10. The company has a market capitalization of $10.93 billion, a price-to-earnings ratio of 32.21, a price-to-earnings-growth ratio of 3.12 and a beta of 1.24. The stock’s fifty day simple moving average is $291.99 and its 200-day simple moving average is $280.79.

About Watts Water Technologies

Watts Water Technologies, Inc is a global manufacturer and distributor of flow control products and solutions designed to ensure the safe, efficient delivery and use of water. Founded in 1874 and headquartered in North Andover, Massachusetts, the company has built a reputation for engineering innovation in residential, commercial and industrial plumbing, heating, cooling and water treatment systems. Watts operates through a comprehensive portfolio of brands and product lines that address application-specific requirements in water safety, pressure regulation, flow control and filtration.

The company’s product offerings span backflow preventers, pressure reducing valves, relief valves and steam traps, as well as hydronic balancing and temperature control devices for heating systems.