A new trading data show Mueller Water Products Inc. (MWA) is showing positive returns.

Mueller Water Products Inc. (NYSE: MWA) stock fell -2.09% on Friday to $10.31 against a previous-day closing price of $10.53. With 1.21 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.9 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $10.49 whereas the lowest price it dropped to was $10.29. The 52-week range on MWA shows that it touched its highest point at $17.37 and its lowest point at $10.38 during that stretch. It currently has a 1-year price target of $12.62. With its current market cap of 1.65 billion, MWA has annualized dividend of $0.23 while the current yield stands at 2.25%. Beta for the stock currently stands at 1.28.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MWA was down-trending over the past week, with a drop of -4.45%, but this was down by -12.63% over a month. Three-month performance dropped to -10.35% while six-month performance fell -19.14%. The stock lost -33.74% in the past year, while it has lost -28.40% so far this year. A look at the trailing 12-month EPS for MWA yields 0.56 with Next year EPS estimates of 0.68. For the next quarter, that number is 0.14. This implies an EPS growth rate of -2.60% for this year and 9.87% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 9.90%.

Float and Shares Shorts:

At present, 157.00 million MWA shares are outstanding with a float of 154.37 million shares on hand for trading. On Aug 30, 2022, short shares totaled 3.29 million, which was 2.10% higher than short shares on Jul 28, 2022. In addition to Mr. John Scott Hall as the firm’s Pres, CEO & Director, Ms. Marietta Edmunds Zakas serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 100.21% of MWA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.32% of MWA, in contrast to 60.02% held by mutual funds. Shares owned by individuals account for 30.71%. As the largest shareholder in MWA with 8.97% of the stake, The Vanguard Group, Inc. holds 14,052,161 shares worth 14,052,161. A second-largest stockholder of MWA, Impax Asset Management Ltd., holds 13,289,256 shares, controlling over 8.48% of the firm’s shares. Nuance Investments LLC is the third largest shareholder in MWA, holding 10,658,826 shares or 6.80% stake. With a 4.38% stake in MWA, the BNP Paribas Funds – Aqua is the largest stakeholder. A total of 6,859,258 shares are owned by the mutual fund manager. The BNP Paribas Aqua, which owns about 4.11% of MWA stock, is the second-largest Mutual Fund holder. It holds 6,429,998 shares valued at 72.53 million. Nuance Mid Cap Value Fund holds 3.28% of the stake in MWA, owning 5,139,978 shares worth 57.98 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, MWA reported revenue of $333.20M and operating income of $37.50M. Over the past year, revenue came in at $1.21B while operating income stood at $127.80M. It generated $26.50M net income for the quarter, which came to $87.90M over the last twelve months. The EBITDA in the recently reported quarter was $53.20M and diluted EPS was $0.17. EBITDA for the full year was $196.40M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MWA since 10 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MWA analysts setting a high price target of $17.00 and a low target of $10.00, the average target price over the next 12 months is $12.75. Based on these targets, MWA could surge 64.89% to reach the target high and fall by -3.01% to reach the target low. Reaching the average price target will result in a growth of 23.67% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MWA will report FY 2022 earnings on 11/07/2022. Analysts have provided yearly estimates in a range of $0.66 being high and $0.59 being low. For MWA, this leads to a yearly average estimate of $0.62. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Mueller Water Products Inc. surprised analysts by -$0.01 when it reported $0.19 EPS against a consensus estimate of $0.20. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.17 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.14.

Summary of Insider Activity:

Insiders traded MWA stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 12,578 shares were bought while 12,578 shares were sold. The number of buy transactions has increased to 33 while that of sell transactions has risen to 34 over the past year. The total number of shares bought during that period was 365,894 while 103,413 shares were sold.

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