Fenimore Sells Off All 244K WAT Shares Valued At $85.1 Million

Fenimore Asset Management Inc. fully exited its position in Waters Corporation (NYSE:WAT), selling approximately $85.09 million in shares.

What happened

According to a Q3 2025 filing submitted to the U.S. Securities and Exchange Commission on October 20, 2025, Fenimore Asset Management Inc. sold all 243,780 shares of Waters Corporation during the third quarter. The estimated trade size was $85.09 million, calculated using the average share price for the quarter. The fund reported no remaining Waters Corporation shares as of September 30, 2025.

What else to know

The fund fully liquidated its Waters Corporation holding, which previously accounted for 1.7% of AUM as of Q3 2025; post-sale, the position represents 0% of AUM.

Top holdings after the filing:

• APH: $253.7 million (5.1% of AUM)
• ROST: $244.6 million (4.9% of AUM)
• VMC: $204.8 million (4.1% of AUM)
• BRO: $202.3 million (4.1% of AUM)
• SYK: $194.2 million (3.9% of AUM)

As of October 29, 2025, Waters Corporation shares were priced at $345.29, down 6.9% YTD, underperforming/overperforming the S&P 500 by 23.7 percentage points during the same period.

Company Overview

Company Snapshot

• Offers high and ultra-performance liquid chromatography systems, mass spectrometry technology, thermal analysis instruments, and software-based analytical solutions.
• Generates revenue through the sale and servicing of analytical instruments, consumables, and software, with recurring income from post-warranty service plans and consumable products.
• Serves pharmaceutical, life science, industrial, environmental, academic, and governmental laboratories focused on research, development, and quality assurance.
• Waters Corporation is a leading provider of specialty measurement and analytical workflow solutions, operating globally with a focus on innovation in laboratory instrumentation. The company leverages its expertise in chromatography and mass spectrometry to address complex analytical needs across diverse scientific and industrial sectors. Its integrated approach, combining hardware, consumables, and software, supports customers in achieving high precision and efficiency in laboratory environments.

Foolish take

Fenimore Asset Management recently sold off its entire $85 million stake in Waters Corporation stock, completely exiting the analytical instruments maker after a pretty tough year for the shares. The stock is down almost 7% in 2025 through late October and has fallen behind the broader market as spending in life sciences and industrial sectors has cooled down. This move likely means the company is taking profits and shifting its portfolio into sectors that are growing faster or are more cyclical.

Waters is still a major player in chromatography and mass spectrometry—these are essential technologies for pharmaceutical research, food safety, and environmental testing. The company’s stable foundation comes from the recurring revenue they get from consumables and service contracts, which holds up even when demand for new capital equipment slows down. Its long-term strength is in its innovation and its deep-rooted relationships with research labs and manufacturers. Fenimore’s decision to sell seems more like a tactical play than a sign of pessimism, as Waters’ strong balance sheet and reputation for precision will keep it well-positioned to benefit when lab and R&D spending eventually bounces back.

Glossary

Assets Under Management (AUM): The total market value of investments managed by a fund or asset manager.

Liquidated: Sold off an entire investment position, reducing the holding to zero.

Reportable assets: Investments that must be disclosed in regulatory filings, typically due to size or regulatory requirements.

Filing: An official document submitted to a regulatory authority, often detailing financial or investment activities.

Average price: The mean price at which shares were bought or sold over a specific period.

Post-warranty service plans: Maintenance agreements for products after the original warranty period has expired.

Consumables: Products used up during operation, such as reagents or parts, requiring regular replacement.

Chromatography: A laboratory technique for separating mixtures to analyze their components.

Mass spectrometry: An analytical method for identifying substances by measuring the mass of their molecules.

TTM: The 12-month period ending with the most recent quarterly report.

Integrated approach: Combining multiple products or services to provide a comprehensive solution for customers.

Adam Palasciano has no positions in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.