# Watts Water Technologies, Inc. (WTS)

watts water technologies family of companies has designed and manufactured valves and related products that promote the comfort and safety of people and the quality, conservation and control of water used in commercial, residential, industrial and municipal applications.

## Stock Price Trends

Stock price trends estimated using linear regression.

#### Key facts

- The primary trend is increasing.
- The growth rate of the primary trend is 118.56% per annum.
- WTS price at the close of November 28, 2023 was $192.27 and was lower than the bottom border of the primary price channel by $706.50 (78.61%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 5.48% per annum.
- WTS price at the close of November 28, 2023 was inside the secondary price channel.

### Linear Regression Model

Model equation:

Y_{i} = α + β × X_{i} + ε_{i}

Top border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} + 2 × s)

Bottom border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} – 2 × s)

where:

i - observation number

Y_{i} - natural logarithm of WTS price

X_{i} - time index, 1 day interval

σ - standard deviation of ε_{i}

a - estimator of α

b - estimator of β

s - estimator of σ

Exp() - calculates the exponent of e

### Primary Trend

Start date: May 6, 2021

End date: November 29, 2021

a = 2.9580

b = 0.0021

s = 0.0332

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0021) – 1

= 118.56%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0332) – 1

= 14.20%

#### May 6, 2021 calculations

Top border of price channel:

Exp(Y_{611})

= Exp(a + b × X_{611} + 2 × s)

= Exp(a + b × 889 + 2 × s)

= Exp(2.9580 + 0.0021 × 889 + 2 × 0.0332)

= Exp(4.9288)

= $138.21

Bottom border of price channel:

Exp(Y_{611})

= Exp(a + b × X_{611} – 2 × s)

= Exp(a + b × 889 – 2 × s)

= Exp(2.9580 + 0.0021 × 889 – 2 × 0.0332)

= Exp(4.7960)

= $121.02

#### November 29, 2021 calculations

Top border of price channel:

Exp(Y_{754})

= Exp(a + b × X_{754} + 2 × s)

= Exp(a + b × 1,096 + 2 × s)

= Exp(2.9580 + 0.0021 × 1,096 + 2 × 0.0332)

= Exp(5.3722)

= $215.33

Bottom border of price channel:

Exp(Y_{754})

= Exp(a + b × X_{754} – 2 × s)

= Exp(a + b × 1,096 – 2 × s)

= Exp(2.9580 + 0.0021 × 1,096 – 2 × 0.0332)

= Exp(5.2394)

= $188.56

### Secondary Trend

Start date: May 6, 2021

End date: November 28, 2023

a = 4.8631

b = 0.0001

s = 0.1329

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0001) – 1

= 5.48%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.1329) – 1

= 70.13%

#### May 6, 2021 calculations

Top border of price channel:

Exp(Y_{611})

= Exp(a + b × X_{611} + 2 × s)

= Exp(a + b × 889 + 2 × s)

= Exp(4.8631 + 0.0001 × 889 + 2 × 0.1329)

= Exp(5.2587)

= $192.24

Bottom border of price channel:

Exp(Y_{611})

= Exp(a + b × X_{611} – 2 × s)

= Exp(a + b × 889 – 2 × s)

= Exp(4.8631 + 0.0001 × 889 – 2 × 0.1329)

= Exp(4.7273)

= $112.99

#### November 28, 2023 calculations

Top border of price channel:

Exp(Y_{1,256})

= Exp(a + b × X_{1,256} + 2 × s)

= Exp(a + b × 1,825 + 2 × s)

= Exp(4.8631 + 0.0001 × 1,825 + 2 × 0.1329)

= Exp(5.3956)

= $220.43

Bottom border of price channel:

Exp(Y_{1,256})

= Exp(a + b × X_{1,256} – 2 × s)

= Exp(a + b × 1,825 – 2 × s)

= Exp(4.8631 + 0.0001 × 1,825 – 2 × 0.1329)

= Exp(4.8641)

= $129.56