Benzinga - by Benzinga Insights, Benzinga Staff Writer.
TIMOTHY HORNE, 10% Owner at Watts Water Technologies (NYSE:WTS), reported an insider sell on February 28, according to a new SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday outlined that HORNE executed a sale of 10,000 shares of Watts Water Technologies with a total value of $1,990,831.
The latest market snapshot at Wednesday morning reveals Watts Water Technologies shares down by 0.0%, trading at $199.25.
Delving into Watts Water Technologies's Background Watts Water Technologies Inc is a U.S.-based company that provides safety, energy efficiency, and water conservation products. Its product portfolio includes residential and commercial flow control products, which are sold for plumbing and hot water applications; HVAC and gas products, including commercial boilers, water heaters, heating solutions, and heating systems; drainage and water reuse products, including drainage products and engineered rainwater-harvesting solutions; and water quality products, including point-of-use and point-of-entry water filtration, conditioning, and scale prevention systems. The company generates the majority of its revenue from markets in the Americas and in Europe, the Middle East, and Africa.
Breaking Down Watts Water Technologies's Financial Performance Revenue Growth: Watts Water Technologies's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 9.09%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Key Profitability Indicators:
- Gross Margin: With a high gross margin of 46.68%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): Watts Water Technologies's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.67.
Insights into Valuation Metrics:
- Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 25.48, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 3.25 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 16.42, Watts Water Technologies could be considered undervalued.
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Why Insider Transactions Are Important Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Navigating the World of Insider Transaction Codes Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Watts Water Technologies's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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