Robert Kenneth Lepage, General Counsel at Watts Water Technologies (NYSE:WTS), reported an insider sell on November 7, according to a new SEC filing.
What Happened: Lepage's decision to sell 2,607 shares of Watts Water Technologies was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $554,571.
In the Friday's morning session, Watts Water Technologies's shares are currently trading at $207.93, experiencing a up of 0.33%.
About Watts Water Technologies
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.
Key Indicators: Watts Water Technologies's Financial Health
Revenue Growth: Watts Water Technologies's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 7.79%. 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 Insights into Profitability Metrics:
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): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.07, Watts Water Technologies showcases strong earnings per share.
Debt Management: Watts Water Technologies's debt-to-equity ratio is below the industry average. With a ratio of 0.13, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Valuation Overview:
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 24.85, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
Price to Sales (P/S) Ratio: The current P/S ratio of 3.07 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): The company's EV/EBITDA ratio 15.38 is below the industry average, indicating that it may be relatively undervalued compared to peers.
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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Unmasking the Significance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
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.
Unlocking the Meaning of Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, 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 signals 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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