Watts Water Technologies (NYSE:WTS) Trading Up 6.3% Following Strong Earnings

Shares of Watts Water Technologies, Inc. (NYSE:WTS) traded up 6.3% during mid-day trading on Thursday following a stronger than expected earnings report. The company traded as high as $345.17 and last traded at $334.6210. 100,250 shares were traded during mid-day trading, a decline of 44% from the average session 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 firm had revenue of $625.10 million for the quarter, compared to analysts’ expectations of $610.40 million. Watts Water Technologies had a return on equity of 18.31% and a net margin of 13.79%.The business’s quarterly revenue was up 15.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.05 EPS.

Watts Water Technologies Dividend Announcement

The business also recently declared a monthly dividend, which will be paid on Friday, March 13th. Investors of record on Friday, February 27th will be given a $0.52 dividend. This represents a c) dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Friday, February 27th. Watts Water Technologies’s dividend payout ratio is presently 21.47%.

Watts Water Technologies News Summary

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

• Positive Sentiment: Q4 results beat expectations — Watts reported EPS of $2.62 vs. consensus $2.36 and revenue of $625.1M vs. $610M consensus; revenue rose ~15.7% year-over-year, indicating solid top- and bottom-line momentum. Watts Water (WTS) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Company calls the quarter and full year “record” — management published results and highlighted strong margin and ROE performance, supporting confidence in the business model and cash generation. Watts Water Technologies Reports Record Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: FY‑2026 revenue guidance raised to about $2.6B–$2.7B (above the prior consensus ~ $2.5B), signaling management expects continued growth next year (EPS guide in the release was not specified in the entry). This guidance bump likely contributed to the positive market reaction.
• Neutral Sentiment: Management commentary and detail are available in the full Q4 earnings call transcript — useful for investors who want line-item color on organic growth, margins, and acquisition integration. WTS Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst write-ups and quarter snapshots (Zacks, SeattlePI, Yahoo) provide metric breakdowns and context on what drove the beat; use these for quick checks against consensus and historical trends. Compared to Estimates, Watts Water (WTS) Q4 Earnings
• Negative Sentiment: Valuation and recent run-up are a concern for some investors — the stock has rallied strongly over the past year (articles question whether it’s “too late”), and the company’s trailing P/E (~34.5) reflects elevated expectations; that raises execution risk for future quarters. Is It Too Late To Consider Watts Water Technologies After A 41% One Year Rally?

Analyst Upgrades and Downgrades

WTS has been the subject of several recent analyst reports. Jefferies Financial Group began coverage on Watts Water Technologies in a report on Friday, December 12th. They issued a “hold” rating and a $300.00 target price for the company. HSBC began coverage on Watts Water Technologies in a research report on Tuesday, January 27th. They set a “buy” rating for the company. Zacks Research raised shares of Watts Water Technologies from a “hold” rating to a “strong-buy” rating in a report on Monday, December 29th. Weiss Ratings restated a “buy (b)” rating on shares of Watts Water Technologies in a report on Monday, December 29th. Finally, Royal Bank Of Canada started coverage on shares of Watts Water Technologies in a research report on Monday, January 5th. They issued a “sector perform” rating and a $288.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $303.83.

Insider Transactions at Watts Water Technologies

In related news, major shareholder Timothy P. Horne sold 6,814 shares of Watts Water Technologies stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $272.32, for a total transaction of $1,855,588.48. Following the completion of the transaction, the insider directly owned 15,000 shares in the company, valued at approximately $4,084,800. This trade represents a 31.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Virginia A. Halloran sold 605 shares of Watts Water Technologies stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $276.78, for a total transaction of $167,451.90. Following the transaction, the chief accounting officer directly owned 13,412 shares of the company’s stock, valued at approximately $3,712,173.36. This trade represents a 4.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 8,611 shares of company stock worth $2,347,509 over the last three months. Corporate insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. MTM Investment Management LLC acquired a new position in shares of Watts Water Technologies during the second quarter worth about $25,000. Wexford Capital LP purchased a new stake in shares of Watts Water Technologies during the 3rd quarter worth approximately $26,000. Clearstead Advisors LLC raised its position in shares of Watts Water Technologies by 69.4% in the 4th quarter. Clearstead Advisors LLC now owns 105 shares of the technology company’s stock worth $29,000 after buying an additional 43 shares during the period. Advisory Services Network LLC acquired a new stake in shares of Watts Water Technologies during the third quarter worth approximately $29,000. Finally, Cullen Frost Bankers Inc. lifted its stake in Watts Water Technologies by 156.9% in the second quarter. Cullen Frost Bankers Inc. now owns 131 shares of the technology company’s stock valued at $32,000 after buying an additional 80 shares during the last quarter. Hedge funds and other institutional investors own 95.02% of the company’s stock.

Watts Water Technologies Trading Up 6.2%

The business has a fifty day moving average of $289.64 and a 200-day moving average of $279.88. The stock has a market capitalization of $11.15 billion, a price-to-earnings ratio of 34.53, a price-to-earnings-growth ratio of 2.93 and a beta of 1.24. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.83 and a quick ratio of 1.84.

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.