American Water Works (NYSE:AWK) Sets New 1-Year High – Here’s Why

American Water Works Company, Inc. (NYSE:AWK)’s stock price hit a new 52-week high during mid-day trading on Friday. The company traded as high as $144.14 and last traded at $142.4140, with a volume of 48,874 shares traded. The stock had previously closed at $143.23.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Mizuho boosted their price objective on American Water Works from $130.00 to $140.00 and gave the stock a “neutral” rating in a research note on Friday, July 31st. Wall Street Zen raised American Water Works from a “strong sell” rating to a “sell” rating in a research note on Monday, August 3rd. Bank of America reiterated a “neutral” rating on shares of American Water Works in a report on Thursday, July 16th. Barclays lowered their price target on shares of American Water Works from $130.00 to $127.00 and set an “underweight” rating on the stock in a research report on Monday. Finally, UBS Group lowered their price target on shares of American Water Works from $162.00 to $153.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $136.75.

American Water Works Trading Down 0.7%

The company has a 50 day moving average price of $135.00 and a 200 day moving average price of $131.89. The firm has a market cap of $28.26 billion, a price-to-earnings ratio of 24.63, a price-to-earnings-growth ratio of 2.75 and a beta of 0.58. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.49 and a current ratio of 0.52.

American Water Works (NYSE:AWK) last released its earnings results on Wednesday, July 29th. The utilities provider reported $1.61 earnings per share for the quarter, beating the consensus estimate of $1.53 by $0.08. American Water Works had a return on equity of 10.20% and a net margin of 21.35%. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the previous year, the company posted $1.48 EPS. American Water Works’s revenue was up 6.2% compared to the same quarter last year. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. On average, research analysts expect that American Water Works Company, Inc. will post 6.08 earnings per share for the current year.

American Water Works Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 11th were paid a $0.8950 dividend. This represents a $3.58 annualized dividend and a yield of 2.5%. The ex-dividend date was Tuesday, August 11th. American Water Works’s dividend payout ratio is currently 62.05%.

Hedge Funds Weigh In On American Water Works

A number of hedge funds have recently modified their holdings of the business. Versant Capital Management Inc increased its position in American Water Works by 6.6% in the 2nd quarter. Versant Capital Management Inc now owns 1,199 shares of the utilities provider’s stock valued at $158,000 after acquiring an additional 74 shares during the period. CoreCap Advisors LLC lifted its position in American Water Works by 21.1% during the 3rd quarter. CoreCap Advisors LLC now owns 453 shares of the utilities provider’s stock worth $62,000 after acquiring an additional 79 shares during the period. Eastern Bank lifted its position in American Water Works by 2.9% during the 3rd quarter. Eastern Bank now owns 2,945 shares of the utilities provider’s stock worth $381,000 after acquiring an additional 82 shares during the period. Parkside Financial Bank & Trust grew its stake in shares of American Water Works by 13.7% in the 2nd quarter. Parkside Financial Bank & Trust now owns 806 shares of the utilities provider’s stock valued at $106,000 after purchasing an additional 97 shares during the last quarter. Finally, Farmers & Merchants Investments Inc. grew its stake in shares of American Water Works by 73.1% in the 3rd quarter. Farmers & Merchants Investments Inc. now owns 232 shares of the utilities provider’s stock valued at $30,000 after purchasing an additional 98 shares during the last quarter. 86.58% of the stock is currently owned by hedge funds and other institutional investors.

About American Water Works

American Water Works Company, Inc is a public water and wastewater utility that provides essential services to residential, commercial, industrial and institutional customers. Through its regulated businesses, the company supplies drinking water, collects and treats wastewater, and manages related infrastructure, including treatment plants, pipelines, storage facilities and customer service systems.

Founded in 1886, American Water has grown into one of the largest water and wastewater service providers in the United States.