# Watts Water Technologies Inc (WTS)

Watts Water Technologies, Inc. designs, manufactures and sells products and systems that manage and conserve the flow of fluids and energy to, through and from buildings in the commercial and residential markets of the Americas, Europe, Asia-Pacific, the Middle East and Africa. . The company is headquartered in North Andover, Massachusetts.

## 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 119.87% per annum.
- WTS price at the close of August 7, 2024 was $193.68 and was lower than the bottom border of the primary price channel by $1,345.08 (87.41%). This indicates a possible reversal in the primary trend direction.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 24.10% per annum.
- WTS price at the close of August 7, 2024 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 = 3.4635

b = 0.0022

s = 0.0331

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0022) – 1

= 119.87%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0331) – 1

= 14.14%

#### May 6, 2021 calculations

Top border of price channel:

Exp(Y_{439})

= Exp(a + b × X_{439} + 2 × s)

= Exp(a + b × 637 + 2 × s)

= Exp(3.4635 + 0.0022 × 637 + 2 × 0.0331)

= Exp(4.9046)

= $134.90

Bottom border of price channel:

Exp(Y_{439})

= Exp(a + b × X_{439} – 2 × s)

= Exp(a + b × 637 – 2 × s)

= Exp(3.4635 + 0.0022 × 637 – 2 × 0.0331)

= Exp(4.7723)

= $118.19

#### November 29, 2021 calculations

Top border of price channel:

Exp(Y_{582})

= Exp(a + b × X_{582} + 2 × s)

= Exp(a + b × 844 + 2 × s)

= Exp(3.4635 + 0.0022 × 844 + 2 × 0.0331)

= Exp(5.3514)

= $210.90

Bottom border of price channel:

Exp(Y_{582})

= Exp(a + b × X_{582} – 2 × s)

= Exp(a + b × 844 – 2 × s)

= Exp(3.4635 + 0.0022 × 844 – 2 × 0.0331)

= Exp(5.2191)

= $184.77

#### Description

- The primary trend is increasing.
- The growth rate of the primary trend is 119.87% per annum.
- WTS price at the close of August 7, 2024 was $193.68 and was lower than the bottom border of the primary price channel by $1,345.08 (87.41%). This indicates a possible reversal in the primary trend direction.

### Secondary Trend

Start date: February 10, 2022

End date: August 7, 2024

a = 4.2908

b = 0.0006

s = 0.0698

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0006) – 1

= 24.10%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0698) – 1

= 32.23%

#### February 10, 2022 calculations

Top border of price channel:

Exp(Y_{633})

= Exp(a + b × X_{633} + 2 × s)

= Exp(a + b × 917 + 2 × s)

= Exp(4.2908 + 0.0006 × 917 + 2 × 0.0698)

= Exp(4.9729)

= $144.44

Bottom border of price channel:

Exp(Y_{633})

= Exp(a + b × X_{633} – 2 × s)

= Exp(a + b × 917 – 2 × s)

= Exp(4.2908 + 0.0006 × 917 – 2 × 0.0698)

= Exp(4.6935)

= $109.24

#### August 7, 2024 calculations

Top border of price channel:

Exp(Y_{1,257})

= Exp(a + b × X_{1,257} + 2 × s)

= Exp(a + b × 1,826 + 2 × s)

= Exp(4.2908 + 0.0006 × 1,826 + 2 × 0.0698)

= Exp(5.5106)

= $247.30

Bottom border of price channel:

Exp(Y_{1,257})

= Exp(a + b × X_{1,257} – 2 × s)

= Exp(a + b × 1,826 – 2 × s)

= Exp(4.2908 + 0.0006 × 1,826 – 2 × 0.0698)

= Exp(5.2313)

= $187.03

#### Description

- The secondary trend is increasing.
- The growth rate of the secondary trend is 24.10% per annum.
- WTS price at the close of August 7, 2024 was inside the secondary price channel.