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

Shares of Watts Water Technologies, Inc. (NYSE:WTS) shot up 6.3% on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $345.17 and last traded at $334.6210. 100,250 shares traded hands 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 earnings per share for the quarter, beating analysts’ consensus estimates of $2.36 by $0.26. Watts Water Technologies had a net margin of 13.98% and a return on equity of 18.93%. The firm had revenue of $625.10 million during the quarter, compared to the consensus estimate of $610.40 million. During the same period in the prior year, the firm earned $2.05 EPS. The business’s revenue was up 15.7% on a year-over-year basis.

Watts Water Technologies Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Friday, March 13th. Stockholders of record on Friday, February 27th will be given a dividend of $0.52 per share. This represents a c) annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Friday, February 27th. Watts Water Technologies’s payout ratio is 21.47%.

Watts Water Technologies News Roundup

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

• Positive Sentiment: Company reported record Q4 and full‑year results; management cited strong end‑market demand and margin expansion, supporting the upbeat tone. Watts Water Technologies Reports Record Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Q4 results beat estimates: EPS $2.62 vs. consensus $2.36 and revenue $625.1M vs. ~$610M; revenue up ~15.7% YoY — a clear fundamental beat that drives near‑term upside. Watts Water (WTS) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Management updated FY‑2026 revenue guidance to $2.6B–$2.7B, above consensus (~$2.5B), which signals continued top‑line momentum for the year ahead. (Guidance provided in the company update.)
• Positive Sentiment: Technical/market confirmation: trading volume was meaningfully above average and the stock is trading above its 50‑ and 200‑day moving averages, reinforcing the rally on earnings news.
• Neutral Sentiment: Full earnings call transcript and slide deck are available for deeper detail on segment trends, backlog and margin drivers; useful for modeling but not immediate catalysts. Watts Water Technologies Q4 2025 Earnings Call Transcript
• Negative Sentiment: Company did not provide clear EPS guidance in the FY‑2026 update (EPS line appears blank in the release), leaving profit‑ability assumptions open and increasing modeling risk for analysts.
• Negative Sentiment: Valuation and recent run‑up: shares are trading at a premium (P/E ~34.6, PEG ~2.9) after a ~41% one‑year rally, which could limit further upside absent continued strong execution. Is It Too Late To Consider Watts Water Technologies (WTS) After A 41% One Year Rally?

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the company. HSBC began coverage on Watts Water Technologies in a report on Tuesday, January 27th. They set a “buy” rating for the company. TD Cowen restated a “hold” rating on shares of Watts Water Technologies in a report on Thursday, January 8th. Royal Bank Of Canada initiated coverage on shares of Watts Water Technologies in a research note on Monday, January 5th. They issued a “sector perform” rating and a $288.00 price objective on the stock. KeyCorp raised their target price on Watts Water Technologies from $340.00 to $360.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, Wells Fargo & Company set a $275.00 price target on shares of Watts Water Technologies in a report on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $303.83.

Insiders Place Their Bets

In other news, major shareholder Timothy P. Horne sold 6,814 shares of Watts Water Technologies stock in a transaction 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 sale, the insider owned 15,000 shares of the company’s stock, valued at approximately $4,084,800. This trade represents a 31.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 transaction of $167,451.90. Following the transaction, the chief accounting officer owned 13,412 shares in the company, valued at approximately $3,712,173.36. The trade was a 4.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 8,611 shares of company stock valued at $2,347,509. Company insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Commonwealth Equity Services LLC grew its holdings in shares of Watts Water Technologies by 0.8% during the fourth quarter. Commonwealth Equity Services LLC now owns 4,163 shares of the technology company’s stock worth $1,149,000 after purchasing an additional 32 shares during the last quarter. World Investment Advisors increased its position in shares of Watts Water Technologies by 1.4% during the third quarter. World Investment Advisors now owns 2,648 shares of the technology company’s stock worth $740,000 after acquiring an additional 37 shares in the last quarter. Centennial Wealth Advisory LLC boosted its position in shares of Watts Water Technologies by 3.8% during the fourth quarter. Centennial Wealth Advisory LLC now owns 1,012 shares of the technology company’s stock valued at $279,000 after buying an additional 37 shares during the last quarter. Oregon Public Employees Retirement Fund raised its holdings in shares of Watts Water Technologies by 0.7% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 5,510 shares of the technology company’s stock valued at $1,521,000 after purchasing an additional 38 shares during the last quarter. Finally, Texas Yale Capital Corp. grew its holdings in shares of Watts Water Technologies by 4.4% in the third quarter. Texas Yale Capital Corp. now owns 940 shares of the technology company’s stock valued at $263,000 after acquiring an additional 40 shares in the last quarter. Institutional investors own 95.02% of the company’s stock.

Watts Water Technologies Stock Up 6.7%

The stock has a 50 day moving average price of $290.88 and a 200 day moving average price of $280.26. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.84 and a current ratio of 2.83. The company has a market capitalization of $11.20 billion, a P/E ratio of 33.02, a PEG ratio of 2.93 and a beta of 1.24.

Watts Water Technologies Company Profile

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.