The Waters Corp Enigma: What’s Causing the Wild Swings in WAT Stock?

Wells Fargo has recently initiated Waters Corp (WAT) stock to Overweight rating, as announced on August 28, 2024, according to Finviz. Earlier, on August 1, 2024, Leerink Partners had raised the stock from a Market Perform to Outperform, setting a price target of $375 for WAT stock. Jefferies also resumed Hold rating with a price target of $320. Additionally, Barclays reduced Underweight rating on November 13, 2023, with a target price of $230. Bernstein analysts, in their report published on September 28, 2023, also initiated Mkt Perform rating and set a price target of $280 for Waters Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Waters Corp (WAT) Stock Trading Recap

On Friday, Waters Corp (WAT) stock saw a decline, ending the day at $352.51 which represents a decrease of $-1.89 or -0.53% from the prior close of $354.4. The stock opened at $358.44 and touched a low of $350.03 during the day, reaching a high of $358.44. The volume of shares traded was 0.58 million exceeding the average volume of 0.38 million.

WAT Stock Performance and Moving Averages

In recent trading, Waters Corp (WAT) stock price has shown some volatility, fluctuating -1.35% over the last five trades and 6.40% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 4.93%, and it has gained 23.44% in the previous three months. Currently, WAT is trading at 3.77%, 4.64%, and 8.43% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, WAT, a Healthcare sector stock, is trading -4.00% below its 52-week high but remains 52.01% above its 52-week low. The Average True Range (ATR) (14 days) of 8.58 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Waters Corp’s Profitability and Valuation Ratios

Waters Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 27.14% and a profit margin of 20.71%, with a gross margin of 4.93%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Waters Corp’s market capitalization stands at $20.92 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 35.12, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 27.72. Additionally, the Price-to-Sales Ratio is 7.27, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 14.82, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.25% of Waters Corp (WAT)’s shares, while financial institutions hold 98.49%.

Notable insider trades include KUEBLER CHRISTOPHER A, Director at Waters Corp (WAT), who sold 4000 shares on May 15 ’24, at $361.64 each, totaling $1.45 million. On Mar 13 ’24, BADDOUR LINDA, Director, sold 500 shares for $355.54 each, amounting to $0.18 million.

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