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

Watts Water Technologies, Inc. (NYSE:WTS)’s share price traded up 6.3% during trading on Thursday following a stronger than expected earnings report. The stock 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 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 net margin of 13.79% and a return on equity of 18.31%. The firm’s quarterly revenue was up 15.7% on a year-over-year basis. During the same period in the prior year, the business earned $2.05 EPS.

Watts Water Technologies Announces Dividend

The business also recently disclosed 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 currently 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

A number of equities analysts have recently commented on WTS shares. Barclays lifted their target price on shares of Watts Water Technologies from $287.00 to $300.00 and gave the company an “equal weight” rating in a report on Friday, November 7th. Jefferies Financial Group assumed coverage on shares of Watts Water Technologies in a report on Friday, December 12th. They issued a “hold” rating and a $300.00 price target for the company. Weiss Ratings restated a “buy (b)” rating on shares of Watts Water Technologies in a research report on Monday, December 29th. HSBC began coverage on shares of Watts Water Technologies in a research report on Tuesday, January 27th. They set a “buy” rating for the company. Finally, Royal Bank Of Canada started coverage on Watts Water Technologies in a research report on Monday, January 5th. They issued a “sector perform” rating and a $288.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Watts Water Technologies presently has an average rating of “Moderate Buy” and an average target price of $303.83.

Insiders Place Their Bets

In other news, major shareholder Timothy P. Horne sold 6,814 shares of the business’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $272.32, for a total value 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. The trade was a 31.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Virginia A. Halloran sold 605 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $276.78, for a total value of $167,451.90. Following the sale, the chief accounting officer owned 13,412 shares in the company, valued at $3,712,173.36. The trade was a 4.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 8,611 shares of company stock valued at $2,347,509. Insiders own 1.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Wexford Capital LP bought a new position in shares of Watts Water Technologies in the third quarter worth about $26,000. MTM Investment Management LLC acquired a new stake in shares of Watts Water Technologies in the 2nd quarter valued at $25,000. Advisory Services Network LLC acquired a new position in shares of Watts Water Technologies during the third quarter valued at $29,000. Clearstead Advisors LLC boosted its stake in Watts Water Technologies by 69.4% during the 4th quarter. Clearstead Advisors LLC now owns 105 shares of the technology company’s stock worth $29,000 after acquiring an additional 43 shares during the last quarter. Finally, Cullen Frost Bankers Inc. grew its holdings in Watts Water Technologies by 156.9% during the second quarter. Cullen Frost Bankers Inc. now owns 131 shares of the technology company’s stock valued at $32,000 after purchasing an additional 80 shares during the period. Institutional investors and hedge funds own 95.02% of the company’s stock.

Watts Water Technologies Trading Up 6.2%

The company’s fifty day simple moving average is $289.64 and its two-hundred day simple moving average is $279.88. The company has a quick ratio of 1.84, a current ratio of 2.83 and a debt-to-equity ratio of 0.10. The company 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.

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.