Insider transactions can give investors a more complete view of what’s going on within publicly-traded companies. No one has more information in relation to a company’s prospects than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Waters Corp (WAT:US). Waters is a specialty measurement company that is focused on improving human health and well-being through the application of high-value analytical technologies and industry leading scientific expertise. It is listed on the New York Stock Exchange and currently has a market cap of approximately $18.41 billion.
Insider Buying at Waters
2iQ data shows that on February 28, board member Mark Vergnano purchased 3,185 shares at a price of $313.32 per share. This trade cost the insider just under $1 million and increased his holding to 3,557 shares.
Mr. Vergnano has significant experience in this industry. Previously, he was Chairman, President, and Chief Executive Officer of The Chemours Company – an American chemical company that was founded in July 2015 as a spin-off from DuPont. He is the past Chairman of the American Chemistry Council (ACC), past Chairman of the National Safety Council, and a past board member of the National Association of Manufacturers (NAM). Given his background, he is likely to have a good understanding of Waters’ prospects.
What stands out here is the size of his purchase. The fact that the insider has invested around $1 million in company stock suggests that he is very confident the stock is set to move higher.
Waters recently announced that it plans to acquire Wyatt Technology – a company that specializes in innovative light scattering and field-flow fractionation instruments, software, accessories, and services.
The deal, which is expected to close in Q2 and be immediately accretive to revenue growth and margins, will cost Waters $1.36 billion in cash, subject to certain adjustments. At the end of 2022, however, Waters only had cash of $0.48 billion on its books, so this deal may increase its debt.
The market was unimpressed with this development, as the stock has fallen since the news.
Clearly, Mr. Vergnano believes that the recent share price pullback has created a buying opportunity.
We see this insider buying activity as a bullish development.