Trade Report: Today, American Water Works (AWK) Lowered by The Zacks Investment Research to “Hold”

Today, American Water Works (AWK) Lowered by The Zacks Investment Research to “Hold”

Zacks Investment Research lowered shares of American Water Works (NYSE:AWK) from a buy rating to a hold rating in a research report report published on Thursday.

According to Zacks, “American Water Works’ is benefiting from its consistent investments in regulated operations and contribution from the acquired assets. The company’s inorganic growth strategy has been of great help, enabling it to add 10,700 customers to the existing base year to date. We believe consolidation is the need of the hour in the fragmented U.S. water utility space. A favorable rate hike decision is also helping the company to execute infrastructural development activities and pay regular dividends to shareholders. The company continues to improve its water and wastewater systems, which allows it to provide efficient services to its expanding customer base. However, stringent regulations, fluctuating weather patterns and risk of accidents due to old and soiled pipelines are persistent headwinds.”

Other research analysts also recently issued research reports about the stock. Vetr raised shares of American Water Works from a buy rating to a strong-buy rating and set a $79.67 price objective for the company in a research report on Thursday, November 10th. Bank of America Corp. raised shares of American Water Works from a neutral rating to a buy rating and lifted their price objective for the company from $77.00 to $84.00 in a research report on Wednesday, November 9th. Barclays PLC decreased their price objective on shares of American Water Works from $87.00 to $81.00 and set an overweight rating for the company in a research report on Tuesday, September 6th. Finally, Robert W. Baird assumed coverage on shares of American Water Works in a research report on Friday, October 14th. They issued an outperform rating and a $82.00 price objective for the company. Five equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The company currently has a consensus rating of Buy and an average target price of $80.33.

Shares of American Water Works (NYSE:AWK) opened at 72.49 on Thursday. American Water Works has a 1-year low of $56.40 and a 1-year high of $85.24. The company has a 50-day moving average of $71.90 and a 200-day moving average of $76.05. The company has a market cap of $12.90 billion, a PE ratio of 27.89 and a beta of 0.23.

American Water Works (NYSE:AWK) last released its earnings results on Wednesday, November 2nd. The company reported $1.05 earnings per share for the quarter, beating analysts’ consensus estimates of $1.01 by $0.04. American Water Works had a net margin of 14.19% and a return on equity of 9.85%. The business earned $930 million during the quarter, compared to the consensus estimate of $944.98 million. During the same quarter last year, the firm earned $0.96 earnings per share. The firm’s revenue for the quarter was up 3.8% compared to the same quarter last year. Equities analysts forecast that American Water Works will post $2.85 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 1st. Shareholders of record on Wednesday, November 9th will be paid a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 2.07%. The ex-dividend date of this dividend is Monday, November 7th. American Water Works’s dividend payout ratio (DPR) is 57.47%.

Hedge funds have recently modified their holdings of the company. Chevy Chase Trust Holdings Inc. boosted its stake in shares of American Water Works by 0.9% in the second quarter. Chevy Chase Trust Holdings Inc. now owns 152,210 shares of the company’s stock valued at $12,863,000 after buying an additional 1,415 shares during the period. Exxonmobil Investment Management Inc. TX boosted its stake in shares of American Water Works by 6.1% in the second quarter. Exxonmobil Investment Management Inc. TX now owns 46,002 shares of the company’s stock valued at $3,888,000 after buying an additional 2,661 shares during the period. DNB Asset Management AS boosted its stake in shares of American Water Works by 14.3% in the second quarter. DNB Asset Management AS now owns 17,628 shares of the company’s stock valued at $1,490,000 after buying an additional 2,200 shares during the period. Daiwa SB Investments Ltd. boosted its stake in shares of American Water Works by 3.0% in the second quarter. Daiwa SB Investments Ltd. now owns 134,650 shares of the company’s stock valued at $11,107,000 after buying an additional 3,890 shares during the period. Finally, Raymond James Trust N.A. boosted its stake in shares of American Water Works by 37.6% in the second quarter. Raymond James Trust N.A. now owns 5,319 shares of the company’s stock valued at $450,000 after buying an additional 1,453 shares during the period. Institutional investors and hedge funds own 80.33% of the company’s stock.

American Water Works Company Profile

American Water Works Company, Inc is a holding company. The Company is a water and wastewater utility company. The Company operates through two segments: the Regulated Businesses and the Market-Based Businesses. Its Regulated Businesses segment involves the ownership of subsidiaries that provide water and wastewater utility services to residential, commercial, industrial and other customers, including sale for resale and public authority customers.

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