American Water Works Company, Inc. (NYSE:AWK) Receives Average Rating of “Hold” from Brokerages

American Water Works Company, Inc. (NYSE:AWK) has been assigned an average rating of “Hold” from the eleven ratings firms that are covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, nine have assigned a hold recommendation and one has issued a buy recommendation on the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $141.4444.

Several research analysts have commented on AWK shares. UBS Group set a $149.00 price objective on shares of American Water Works in a report on Wednesday. TD Cowen started coverage on shares of American Water Works in a research note on Thursday, October 16th. They issued a “hold” rating and a $155.00 price target for the company. Barclays lowered their price objective on shares of American Water Works from $134.00 to $122.00 and set an “underweight” rating for the company in a report on Wednesday. Cowen assumed coverage on American Water Works in a report on Wednesday, October 15th. They set a “hold” rating on the stock. Finally, Jefferies Financial Group upgraded American Water Works from an “underperform” rating to a “hold” rating and raised their target price for the company from $114.00 to $124.00 in a research note on Wednesday, November 5th.

American Water Works Stock Down 2.1%

AWK opened at $130.28 on Friday. American Water Works has a 12 month low of $118.74 and a 12 month high of $155.50. The company has a current ratio of 0.42, a quick ratio of 0.39 and a debt-to-equity ratio of 1.19. The business’s 50-day moving average price is $132.96 and its 200-day moving average price is $138.19. The company has a market cap of $25.43 billion, a P/E ratio of 22.90, a P/E/G ratio of 3.43 and a beta of 0.76.

American Water Works (NYSE:AWK) last announced its quarterly earnings results on Wednesday, October 29th. The utilities provider reported $1.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.90 by $0.04. The business had revenue of $1.45 billion for the quarter, compared to analyst estimates of $1.36 billion. American Water Works had a net margin of 21.93% and a return on equity of 10.48%. The company’s revenue was up 9.7% on a year-over-year basis. During the same quarter last year, the firm earned $1.80 EPS. American Water Works has set its FY 2025 guidance at 5.700-5.750 EPS and its FY 2026 guidance at 6.020-6.120 EPS. On average, equities analysts expect that American Water Works will post 5.71 EPS for the current year.

American Water Works Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, March 3rd. Shareholders of record on Tuesday, February 10th will be paid a dividend of $0.8275 per share. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $3.31 dividend on an annualized basis and a dividend yield of 2.5%. American Water Works’s dividend payout ratio (DPR) is currently 58.17%.

Hedge Funds Weigh In On American Water Works

Several institutional investors and hedge funds have recently modified their holdings of the stock. American National Bank & Trust purchased a new position in American Water Works in the 3rd quarter worth approximately $26,000. Grey Fox Wealth Advisors LLC purchased a new position in shares of American Water Works in the third quarter worth $27,000. Oliver Lagore Vanvalin Investment Group bought a new position in shares of American Water Works during the second quarter valued at $28,000. Concord Wealth Partners purchased a new stake in shares of American Water Works during the second quarter valued at $28,000. Finally, Harel Insurance Investments & Financial Services Ltd. bought a new stake in American Water Works in the 3rd quarter worth about $28,000. 86.58% of the stock is currently owned by institutional investors.

About American Water Works

American Water Works Company, Inc (NYSE: AWK) is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company’s operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.