H2O America (HTO) – What Are Brokerages Thinking About This Stock?

H2O America (NASDAQ:HTO) has been given a consensus recommendation of “Moderate Buy” by the ten brokerages that are presently covering the firm, Marketbeat reports. Three analysts have rated the stock with a hold rating, five have issued a buy rating and two have assigned a strong buy rating to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $64.50.

A number of equities research analysts have recently commented on HTO shares. Wall Street Zen upgraded H2O America from a “sell” rating to a “hold” rating in a research note on Sunday, August 16th. Robert W. Baird increased their price target on shares of H2O America from $67.00 to $72.00 and gave the company an “outperform” rating in a research report on Wednesday, July 29th. BTIG Research restated a “buy” rating and set a $65.00 price objective on shares of H2O America in a report on Tuesday, October 20th. Barclays dropped their price objective on H2O America from $66.00 to $65.00 and set an “overweight” rating on the stock in a research note on Monday, October 19th. Finally, Huntington Sec started coverage on shares of H2O America in a report on Wednesday. They set a “strong-buy” rating on the stock.

H2O America Trading Up 2.0%

NASDAQ HTO opened at $59.74 on Friday. The company has a current ratio of 1.90, a quick ratio of 1.67 and a debt-to-equity ratio of 0.85. The business has a fifty day simple moving average of $61.08 and a 200 day simple moving average of $58.81. H2O America has a 12 month low of $43.75 and a 12 month high of $67.09. The firm has a market capitalization of $2.89 billion, a P/E ratio of 23.43, a PEG ratio of 6.27 and a beta of 0.33.

H2O America (NASDAQ:HTO) last released its quarterly earnings results on Monday, October 26th. The utilities provider reported $1.04 earnings per share for the quarter, missing analysts’ consensus estimates of $1.06 by ($0.02). H2O America had a net margin of 12.51% and a return on equity of 6.03%. The firm had revenue of $250.23 million for the quarter. On average, analysts predict that H2O America will post 3.02 EPS for the current fiscal year.

H2O America Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 9th will be given a dividend of $0.44 per share. The ex-dividend date is Monday, November 9th. This represents a $1.76 annualized dividend and a dividend yield of 2.9%. H2O America’s dividend payout ratio (DPR) is 69.02%.

Key Headlines Impacting H2O America

Here are the key news stories impacting H2O America this week:

• Positive Sentiment: Zacks upgraded H2O America from “Hold” to “Strong Buy,” adding a notable near-term bullish catalyst and likely contributing to the stock’s upward move.
• Positive Sentiment: Huntington Sec initiated coverage with a “Strong Buy” rating and forecasts earnings of $3.10 per share for FY2026, above the broader consensus estimate of $2.93. The firm projects earnings rising to $3.53 per share by FY2028, suggesting confidence in the utility’s growth prospects.
• Positive Sentiment: H2O America priced a $325 million equity-unit offering, expected to generate approximately $315.3 million in net proceeds. The capital could support acquisitions, infrastructure investment, or debt repayment, potentially strengthening the company’s balance sheet and growth capacity. H2O America Announces Pricing of Offering of Equity Units
• Neutral Sentiment: The equity units carry a total annual distribution rate of 7.750%, combining 5.300% interest and 2.450% contract-adjustment payments. The units are expected to begin trading on Nasdaq within 30 days, subject to approval.
• Neutral Sentiment: Huntington’s forecasts show earnings of $2.87 per share for FY2027, below its FY2026 estimate, before accelerating in FY2028. This implies some near-term variability despite the firm’s bullish rating.
• Negative Sentiment: The offering includes contracts requiring investors to purchase a variable number of H2O America shares by November 2029. If exercised, those contracts could dilute existing shareholders and increase the company’s future share count.
• Negative Sentiment: The financing also adds interest and distribution obligations. Although proceeds may be used for debt repayment, acquisitions and capital expenditures, the company will need to generate sufficient returns to offset the cost of the new securities.

Institutional Trading of H2O America

Several institutional investors have recently added to or reduced their stakes in the business. Public Employees Retirement System of Ohio bought a new stake in H2O America during the 2nd quarter valued at approximately $37,000. Bessemer Group Inc. grew its holdings in shares of H2O America by 44.6% during the 1st quarter. Bessemer Group Inc. now owns 661 shares of the utilities provider’s stock worth $39,000 after acquiring an additional 204 shares during the period. Allworth Financial LP purchased a new position in shares of H2O America during the 2nd quarter worth approximately $42,000. Pinnacle Wealth Planning Services Inc. raised its position in shares of H2O America by 35.8% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 781 shares of the utilities provider’s stock worth $48,000 after acquiring an additional 206 shares in the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in shares of H2O America by 76.2% in the 1st quarter. EverSource Wealth Advisors LLC now owns 911 shares of the utilities provider’s stock worth $53,000 after acquiring an additional 394 shares in the last quarter. 84.29% of the stock is currently owned by hedge funds and other institutional investors.

H2O America Company Profile