Waters (NYSE:WAT) Sets New 52-Week High - Should You Buy?

Key Points

• Waters shares reached a new 52-week high, trading as high as $426.22 and closing near $422, well above the 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $424.35; Citigroup recently raised its target to $470.
• The company exceeded quarterly expectations with $3.05 in EPS and $1.65 billion in revenue, but its valuation is elevated at a P/E ratio of 105.63, which may increase downside risk for prospective buyers.

Waters Corporation (NYSE:WAT - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $426.22 and last traded at $422.1720, with a volume of 72180 shares trading hands. The stock had previously closed at $414.17.

Analyst Upgrades and Downgrades

Several research firms have weighed in on WAT. HSBC upped their price target on Waters from $415.00 to $435.00 and gave the stock a "buy" rating in a research note on Wednesday, June 3rd. Robert W. Baird set a $387.00 price objective on shares of Waters in a research report on Wednesday, May 6th. Evercore reissued an "outperform" rating and issued a $420.00 target price on shares of Waters in a report on Wednesday, August 5th. Wolfe Research started coverage on shares of Waters in a research report on Tuesday, June 2nd. They set an "outperform" rating and a $425.00 target price for the company. Finally, Citigroup raised their target price on shares of Waters from $425.00 to $470.00 and gave the company a "buy" rating in a research note on Monday, August 10th. Three investment analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $424.35.

Waters Stock Performance

The business has a 50 day moving average of $385.08 and a 200 day moving average of $347.72. The company has a market capitalization of $41.59 billion, a P/E ratio of 105.63, a price-to-earnings-growth ratio of 2.41 and a beta of 1.19. The company has a quick ratio of 1.29, a current ratio of 1.86 and a debt-to-equity ratio of 0.32.

Waters (NYSE:WAT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The medical instruments supplier reported $3.05 earnings per share for the quarter, beating the consensus estimate of $3.01 by $0.04. The business had revenue of $1.65 billion during the quarter, compared to analysts' expectations of $1.62 billion. Waters had a return on equity of 11.27% and a net margin of 3.58%.The firm's revenue for the quarter was up 113.3% compared to the same quarter last year. During the same quarter last year, the business posted $2.95 EPS. Waters has set its Q3 2026 guidance at 3.950-4.050 EPS and its FY 2026 guidance at 14.450-14.650 EPS. On average, sell-side analysts predict that Waters Corporation will post 14.56 earnings per share for the current year.

Insider Buying and Selling at Waters

In related news, Director Christopher A. Kuebler sold 3,626 shares of the business's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $397.94, for a total value of $1,442,930.44. Following the sale, the director owned 17,808 shares in the company, valued at approximately $7,086,515.52. The trade was a 16.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.31% of the company's stock.

Hedge Funds Weigh In On Waters

Several institutional investors have recently bought and sold shares of the business. Brighton Jones LLC lifted its holdings in shares of Waters by 112.9% in the 4th quarter. Brighton Jones LLC now owns 1,269 shares of the medical instruments supplier's stock valued at $471,000 after acquiring an additional 673 shares during the last quarter. Integrated Wealth Concepts LLC increased its stake in Waters by 2.9% during the first quarter. Integrated Wealth Concepts LLC now owns 1,048 shares of the medical instruments supplier's stock worth $386,000 after acquiring an additional 30 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in Waters by 3.6% during the first quarter. Goldman Sachs Group Inc. now owns 200,051 shares of the medical instruments supplier's stock worth $73,733,000 after acquiring an additional 6,976 shares during the last quarter. Empowered Funds LLC raised its position in Waters by 16.6% during the first quarter. Empowered Funds LLC now owns 1,126 shares of the medical instruments supplier's stock valued at $415,000 after purchasing an additional 160 shares during the period. Finally, Sivia Capital Partners LLC purchased a new stake in Waters during the second quarter valued at approximately $232,000. Institutional investors own 94.01% of the company's stock.

About Waters

Waters Corporation is a global provider of analytical instruments, software and services for laboratory and research applications. The company designs, manufactures and sells technologies centered on liquid chromatography, mass spectrometry, separation science, and related sample preparation and detection systems. Its product portfolio includes chromatographs, mass spectrometers, columns and consumables, laboratory informatics and workflow software, as well as technical support and training services that help customers run and interpret complex analyses.

Waters serves a wide range of end markets that include pharmaceutical and biotechnology companies, contract research and testing laboratories, academic and government research institutions, clinical diagnostics, food and environmental testing, and industrial and chemical manufacturers.

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