Timothy P. Horne, a ten percent owner of Watts Water Technologies Inc . (NYSE:WTS), reported a significant stock sale as disclosed in a recent SEC filing. On November 6, Horne sold 5,000 shares of Class A Common Stock at an average price of $214.52 per share. The total value of this transaction amounted to $1,072,600. These shares were held in a revocable trust, with Horne as the sole trustee and beneficiary. Following the sale, Horne no longer holds any shares in the company.
In other recent news, Watts Water Technologies has been in the spotlight due to its Q3 earnings and revenue results, which surpassed expectations, largely driven by strong demand in the Americas. Despite this, the company anticipates a 1-2% decline in organic sales for 2024. Seaport Global Securities, which maintains a neutral rating on Watts Water Technologies, adjusted its earnings per share (EPS) estimates for the company, raising the 2024 forecast to $8.75 and the 2025 estimate to $9.01. While these revisions reflect improved profits, the firm also reduced the fourth-quarter EPS estimate for 2024 due to a weaker sales outlook, particularly in Europe.
In addition to its financial performance, Watts Water Technologies has announced strategic mergers and acquisitions, cost optimization efforts, and potential closure of a manufacturing plant in France. The company also revealed 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 Watts Water Technologies, which continues to navigate the complex market with strategic initiatives and a focus on cost optimization.
InvestingPro Insights
While Timothy P. Horne's recent sale of Watts Water Technologies Inc. (NYSE:WTS) shares may raise eyebrows, a closer look at the company's financials and market position reveals a more nuanced picture. According to InvestingPro data, Watts Water Technologies boasts a market capitalization of $7.08 billion, reflecting its substantial presence in the water technology sector.
The company's financial health appears robust, with a price-to-earnings ratio of 24.41 based on the last twelve months as of Q3 2024. This valuation, while not cheap, may be justified by the company's steady performance. Watts Water Technologies has demonstrated consistent revenue growth, with a 12.36% increase over the last twelve months, and an impressive 19.44% dividend growth over the same period.
InvestingPro Tips highlight the company's strong financial position and shareholder-friendly policies. Notably, Watts Water Technologies "holds more cash than debt on its balance sheet," indicating financial stability. Additionally, the company "has raised its dividend for 12 consecutive years," showcasing a commitment to returning value to shareholders. This consistent dividend growth, coupled with a current dividend yield of 0.86%, may appeal to income-focused investors.
It's worth noting that InvestingPro offers 13 additional tips for Watts Water Technologies, providing a more comprehensive analysis for investors seeking deeper insights into the company's prospects.
Despite the insider sale, these financial indicators suggest that Watts Water Technologies maintains a solid foundation. The company's ability to generate cash flows that "can sufficiently cover interest payments" further underscores its financial health. As always, investors should consider these factors alongside broader market conditions and their individual investment strategies when evaluating WTS stock.
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