Generation Investment Management LLP Lowers Holdings in Waters Corporation $WAT

Key Points

• Generation Investment Management LLP has reduced its stake in Waters Corporation by 50.6%, selling 774,794 shares, now holding approximately 755,325 shares valued at around $278 million.
• In the first quarter, several hedge funds increased their positions in Waters, with QRG Capital Management raising its stake by 85.7%.
• Waters reported earnings of $2.95 per share for the last quarter, beating estimates, with revenue reaching $771.33 million, which was above analyst expectations.

Generation Investment Management LLP trimmed its holdings in shares of Waters Corporation (NYSE:WAT - Free Report) by 50.6% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 755,325 shares of the medical instruments supplier's stock after selling 774,794 shares during the quarter. Waters accounts for approximately 1.7% of Generation Investment Management LLP's investment portfolio, making the stock its 20th largest holding. Generation Investment Management LLP owned approximately 1.27% of Waters worth $278,390,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the stock. GAMMA Investing LLC grew its stake in Waters by 50,228.3% in the first quarter. GAMMA Investing LLC now owns 662,320 shares of the medical instruments supplier's stock worth $244,111,000 after purchasing an additional 661,004 shares in the last quarter. OVERSEA CHINESE BANKING Corp Ltd grew its position in shares of Waters by 676.8% during the 1st quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 705,733 shares of the medical instruments supplier's stock worth $260,112,000 after buying an additional 614,877 shares in the last quarter. Millennium Management LLC raised its holdings in shares of Waters by 3,349.7% in the fourth quarter. Millennium Management LLC now owns 304,404 shares of the medical instruments supplier's stock valued at $112,928,000 after acquiring an additional 295,580 shares in the last quarter. Wellington Management Group LLP lifted its stake in Waters by 93.3% in the first quarter. Wellington Management Group LLP now owns 572,823 shares of the medical instruments supplier's stock worth $211,125,000 after acquiring an additional 276,433 shares during the period. Finally, Nuveen LLC bought a new position in Waters during the 1st quarter worth about $94,028,000. 94.01% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on WAT shares. Scotiabank reaffirmed a "sector outperform" rating and issued a $465.00 price target on shares of Waters in a research report on Friday, July 11th. UBS Group reaffirmed a "neutral" rating on shares of Waters in a research report on Tuesday, July 15th. Deutsche Bank Aktiengesellschaft set a $315.00 price objective on Waters and gave the stock a "hold" rating in a research note on Tuesday, August 5th. Robert W. Baird cut their target price on Waters from $374.00 to $352.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 16th. Finally, Wall Street Zen lowered shares of Waters from a "buy" rating to a "hold" rating in a research report on Saturday, July 26th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $378.73.

Waters Stock Performance

Shares of NYSE:WAT traded up $6.59 on Friday, hitting $306.28. 504,612 shares of the company were exchanged, compared to its average volume of 559,928. The company has a current ratio of 1.75, a quick ratio of 1.22 and a debt-to-equity ratio of 0.55. The stock's 50 day moving average price is $304.79 and its 200 day moving average price is $336.08. Waters Corporation has a 1-year low of $275.05 and a 1-year high of $423.56. The firm has a market capitalization of $18.23 billion, a P/E ratio of 27.62, a price-to-earnings-growth ratio of 2.79 and a beta of 1.07.

Waters (NYSE:WAT - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The medical instruments supplier reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.93 by $0.02. Waters had a return on equity of 38.60% and a net margin of 21.71%.The business had revenue of $771.33 million for the quarter, compared to the consensus estimate of $745.96 million. During the same quarter in the previous year, the business earned $2.63 EPS. The company's quarterly revenue was up 8.8% compared to the same quarter last year. Waters has set its Q3 2025 guidance at 3.150-3.250 EPS. FY 2025 guidance at 12.950-13.050 EPS. Sell-side analysts predict that Waters Corporation will post 12.86 EPS for the current year.

About Waters

Waters Corporation provides analytical workflow solutions in Asia, the Americas, and Europe. It operates through two segments: Waters and TA. The company designs, manufactures, sells, and services high and ultra-performance liquid chromatography, as well as mass spectrometry (MS) technology systems and support products, including chromatography columns, other consumable products, and post-warranty service plans.