Shashank Patel Takes Money Off The Table, Sells $955K In Watts Water Technologies Stock

Shashank Patel, Chief Financial Officer at Watts Water Technologies WTS, disclosed an insider sell on November 8, according to a recent SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday, Patel sold 4,569 shares of Watts Water Technologies. The total transaction value is $955,378.

Watts Water Technologies's shares are actively trading at $204.5, experiencing a down of 1.32% during Friday's morning session.

Discovering Watts Water Technologies: A Closer Look

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.

Financial Insights: Watts Water Technologies

Revenue Growth: Over the 3 months period, Watts Water Technologies showcased positive performance, achieving a revenue growth rate of 7.79% as of 30 September, 2024. This reflects 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.

Navigating Financial Profits:

• Gross Margin: The company maintains a high gross margin of 47.3%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Watts Water Technologies's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.07.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.13.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 24.85 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 3.07, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 15.38, Watts Water Technologies presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

A Closer Look at Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.