Waters (NYSE:WAT) Shares Gap Down – Time to Sell?

Shares of Waters Corporation (NYSE:WAT) gapped down prior to trading on Monday . The stock had previously closed at $381.29, but opened at $332.29. Waters shares last traded at $336.9170, with a volume of 363,895 shares traded.

Waters News Roundup

Here are the key news stories impacting Waters this week:

• Positive Sentiment: Waters completed the combination with BD’s Biosciences & Diagnostic Solutions business, adding scale and diagnostics capabilities that management says will expand addressable markets and recurring revenue opportunities. Waters Completes Combination with BD’s Biosciences & Diagnostic Solutions Businesses
• Positive Sentiment: Management issued FY‑2026 targets of roughly $6.4B–$6.46B in revenue and a 28.1% margin goal driven by BD integration — guidance that signals higher scale and margin upside if synergies materialize. Waters projects $6.4B–$6.46B revenue for 2026 while targeting 28.1% margin through BD integration
• Neutral Sentiment: Q4 results beat modestly: non‑GAAP EPS $4.53 vs. $4.50 consensus and revenue $932M (at the high end of guidance)—growth across pharma, industrial and chemistry end markets, with recurring revenue up. These results support the company’s underlying growth story but weren’t enough to offset forward guidance concerns. Waters Corporation (NYSE: WAT) Reports Fourth Quarter and Full-Year 2025 Financial Results
• Negative Sentiment: Management set Q1‑2026 EPS guidance of $2.25–$2.35, below the ~$2.52 Street consensus, and reiterated a cautious near-term outlook—this guidance miss is the main driver of the stock’s selloff today. Waters forecasts first-quarter profit below Wall Street estimates, shares slide
• Negative Sentiment: An analyst downgrade to Hold increased pressure on the shares, highlighting increased near-term execution risk and valuation concerns as the company absorbs BD’s business. Waters (NYSE:WAT) Rating Lowered to Hold at Wall Street Zen

Analyst Upgrades and Downgrades

WAT has been the subject of several recent analyst reports. Morgan Stanley began coverage on shares of Waters in a report on Monday, December 1st. They issued an “equal weight” rating and a $423.00 target price for the company. HSBC initiated coverage on shares of Waters in a research report on Tuesday, January 27th. They issued a “buy” rating and a $460.00 price objective for the company. Wall Street Zen downgraded Waters from a “buy” rating to a “hold” rating in a research report on Sunday. William Blair began coverage on Waters in a research report on Monday, January 5th. They issued an “outperform” rating on the stock. Finally, Wells Fargo & Company upped their price target on Waters from $385.00 to $415.00 and gave the stock an “equal weight” rating in a report on Monday, December 15th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Waters has a consensus rating of “Moderate Buy” and a consensus price target of $399.12.

Waters Stock Performance

The stock’s 50 day moving average price is $387.85 and its two-hundred day moving average price is $347.31. The company has a current ratio of 1.53, a quick ratio of 1.08 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $19.50 billion, a PE ratio of 30.10, a PEG ratio of 3.19 and a beta of 1.18.

Waters (NYSE:WAT) last posted its earnings results on Thursday, February 12th. The medical instruments supplier reported $4.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.50 by $0.03. Waters had a net margin of 20.89% and a return on equity of 36.59%. The firm had revenue of $932.36 million during the quarter, compared to the consensus estimate of $928.17 million. During the same quarter in the prior year, the company earned $4.10 EPS. The company’s revenue was up 6.9% on a year-over-year basis. On average, equities analysts expect that Waters Corporation will post 12.86 earnings per share for the current year.

Institutional Trading of Waters

Large investors have recently added to or reduced their stakes in the business. Root Financial Partners LLC acquired a new position in shares of Waters in the 3rd quarter valued at $26,000. ANTIPODES PARTNERS Ltd acquired a new stake in shares of Waters in the third quarter valued at about $26,000. Hantz Financial Services Inc. boosted its position in Waters by 115.4% during the third quarter. Hantz Financial Services Inc. now owns 112 shares of the medical instruments supplier’s stock worth $34,000 after purchasing an additional 60 shares during the period. eCIO Inc. bought a new stake in Waters in the 4th quarter valued at about $49,000. Finally, IFP Advisors Inc lifted its stake in Waters by 65.4% during the second quarter. IFP Advisors Inc now owns 134 shares of the medical instruments supplier’s stock worth $51,000 after purchasing an additional 53 shares during the last quarter. 94.01% of the stock is owned by institutional investors.

Waters Company Profile

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.