On November 25, a recent SEC filing unveiled that TIMOTHY HORNE, 10% Owner at Watts Water Technologies (NYSE:WTS) made an insider sell.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that HORNE sold 7,756 shares of Watts Water Technologies. The total transaction amounted to $2,112,057.

During Wednesday's morning session, Watts Water Technologies shares down by 0.0%, currently priced at $277.81.

Get to Know Watts Water Technologies Better

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, etc.; 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. Its products are marketed through brands like Watts, Apex, Bradley, Nexa, and others. Geographically, the company derives its key revenue from the Americas, followed by Europe and the APMEA region.

Financial Milestones: Watts Water Technologies's Journey

Positive Revenue Trend: Examining Watts Water Technologies's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 12.53% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 48.78%, reflecting superior 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 2.45.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.1.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 28.67 is lower than the industry average, implying a discounted valuation for Watts Water Technologies's stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.95 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 18.41 reflects market recognition of Watts Water Technologies's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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The Importance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Transaction Codes Worth Your Attention

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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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This article was generated by Benzinga's automated content engine and reviewed by an editor.