Watts Water Technologies, Inc. Class A (WTS)

Watts Water Technologies reported strong second-quarter 2025 results, exceeding expectations and raising its full-year outlook, driven by favorable pricing and increased volume in the Americas. However, Zacks Research and Wall Street Zen downgraded the stock, while other analysts maintained or raised their ratings, with Stifel Nicolaus setting a price target of $300.00. The stock price was $273.68 on October 9, 2025, and $278.52 on October 23, 2025, despite a recent three-day decline.

The demand for Watts Water Technologies' products is influenced by economic cycles, including downturns, construction activity, and interest rates. Despite these external factors, the company has demonstrated resilience and stable organic revenue growth over the past two and five years, indicating consistent demand for its core offerings.

Watts Water Technologies, Inc. is a global leader providing solutions for plumbing, heating, and water quality across commercial, industrial, and residential markets, with operations spanning the Americas, Europe, Asia-Pacific, the Middle East, and Africa. The company specializes in managing and conserving the flow of fluids and energy within buildings, offering a wide range of products including flow control, HVAC, drainage, and water quality solutions.

Watts Water Technologies has a global presence, with approximately 74% of its revenue coming from the Americas, 20% from Europe, and the remainder from the Asia Pacific and Middle Eastern regions. The company supports this reach with numerous sales centers, manufacturing facilities, and distribution centers across these regions, including North Africa.

Watts Water Technologies has maintained a strong brand reputation, particularly in environmental sustainability, being named one of "America's Greenest Companies 2026" by Newsweek for the third consecutive year. It was also recognized as one of America's Best Midsize Companies 2025 by TIME and a Top Place to Work 2024 by The Boston Globe. The company has significantly reduced its water and emissions intensity, surpassing its initial footprint goals ahead of schedule.

Watts Water Technologies has significant institutional ownership, accounting for approximately 86.85% of shares, with individuals holding about 23%. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, Kayne Anderson Rudnick Investment Management Llc, State Street Corp, and Boston Partners. Timothy P. Horne is the largest individual shareholder, owning 269,175 shares, representing 0.81% of the company.