American Water Works Company, Inc. (NYSE:AWK) Receives Average Rating of "Hold" from Analysts

Key Points

• Shares of American Water Works have an average analyst rating of Hold from 10 firms (1 sell, 8 hold, 1 buy) with a 12‑month average price target of $140.89.
• The company reported quarterly EPS of $1.24, missing estimates by $0.04 and posting revenue slightly below expectations, but set FY2026 guidance of $6.02–$6.12 EPS versus analysts' roughly $5.71 forecast for the year.
• Institutional investors own about 86.6% of the stock and the company is receiving grants and making small acquisitions, but a proposed ~$48B infrastructure plan has raised questions about funding, execution and potential valuation pressure.

Shares of American Water Works Company, Inc. (NYSE:AWK - Get Free Report) have been assigned an average rating of "Hold" from the ten ratings firms that are currently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, eight have given a hold recommendation and one has issued a buy recommendation on the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $140.8889.

Several equities analysts have recently commented on the stock. Wells Fargo & Company decreased their price objective on shares of American Water Works from $142.00 to $126.00 and set an "equal weight" rating on the stock in a report on Tuesday, January 20th. Weiss Ratings reiterated a "hold (c)" rating on shares of American Water Works in a report on Friday, March 27th. Finally, Bank of America upgraded shares of American Water Works from an "underperform" rating to a "neutral" rating and boosted their price target for the stock from $117.00 to $139.00 in a research note on Monday, January 12th.

Hedge Funds Weigh In On American Water Works

Institutional investors have recently modified their holdings of the business. New York State Common Retirement Fund grew its stake in shares of American Water Works by 14.5% in the third quarter. New York State Common Retirement Fund now owns 350,471 shares of the utilities provider's stock worth $48,782,000 after acquiring an additional 44,336 shares in the last quarter. Wesbanco Bank Inc. raised its holdings in shares of American Water Works by 5.6% in the 3rd quarter. Wesbanco Bank Inc. now owns 85,976 shares of the utilities provider's stock valued at $11,967,000 after purchasing an additional 4,553 shares in the last quarter. Aberdeen Group plc raised its holdings in shares of American Water Works by 10.7% in the 4th quarter. Aberdeen Group plc now owns 489,371 shares of the utilities provider's stock valued at $63,863,000 after purchasing an additional 47,352 shares in the last quarter. Nordea Investment Management AB raised its holdings in shares of American Water Works by 2.2% in the 4th quarter. Nordea Investment Management AB now owns 2,219,816 shares of the utilities provider's stock valued at $290,729,000 after purchasing an additional 47,977 shares in the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd raised its holdings in shares of American Water Works by 31.7% in the 3rd quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 136,504 shares of the utilities provider's stock valued at $19,000,000 after purchasing an additional 32,834 shares in the last quarter. Institutional investors and hedge funds own 86.58% of the company's stock.

American Water Works Stock Performance

Shares of AWK stock opened at $130.56 on Friday. The firm's 50 day moving average price is $134.39 and its 200-day moving average price is $133.15. The company has a debt-to-equity ratio of 1.18, a quick ratio of 0.44 and a current ratio of 0.46. American Water Works has a one year low of $121.28 and a one year high of $150.51. The firm has a market cap of $25.49 billion, a P/E ratio of 22.94, a P/E/G ratio of 2.87 and a beta of 0.74.

American Water Works (NYSE:AWK - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The utilities provider reported $1.24 EPS for the quarter, missing the consensus estimate of $1.28 by ($0.04). American Water Works had a return on equity of 10.38% and a net margin of 21.61%.The company had revenue of $1.27 billion during the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the company posted $1.15 earnings per share. The business's revenue was up 5.8% compared to the same quarter last year. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. As a group, equities research analysts predict that American Water Works will post 5.71 EPS for the current year.

Key Headlines Impacting American Water Works

Here are the key news stories impacting American Water Works this week:

• Positive Sentiment: Pennsylvania American Water awarded $25.87M in PENNVEST grants and low‑interest loans to fund dam safety, lead‑line removal and other infrastructure projects — reduces near‑term customer cost pressure and accelerates capital projects that expand regulated earnings. Pennsylvania American Water Receives PENNVEST Funding
• Positive Sentiment: Kentucky American Water completed the acquisition of the City of Livingston municipal water system (adds ~162 customers) — small customer adds today, but part of a broader inorganic growth program that supports rate‑base expansion over time. Kentucky American Water Completes Acquisition
• Positive Sentiment: West Virginia American Water announced a $550,000 infrastructure upgrade in Fayetteville — demonstrates continued localized capital spending and system upgrades across states. West Virginia Infrastructure Project
• Positive Sentiment: Illinois American Water and its charitable foundation provided >$1.2M in community support in 2025 — supports customer/stakeholder relations and regulatory goodwill. Illinois Community Support Report
• Neutral Sentiment: Iowa American Water (American Water parent) celebrates 140 years — positive brand/reputation signal but limited direct earnings impact. 140‑Year Milestone
• Neutral Sentiment: Tennessee American Water published its 2025 water quality reports and celebrated 25 years of recognition — reinforces operational quality but not material to near‑term cash flow. Tennessee Water Quality Reports
• Neutral Sentiment: American Water named recipients of its 2026 James V. LaFrankie scholarships — corporate social responsibility item with limited market impact. Scholarship Awards
• Neutral Sentiment: Analyst/compare pieces (Zacks CWT vs AWK; valuation assessments) are being published — useful for investors assessing relative value and multiples, but they reflect debate rather than new corporate developments. CWT vs AWK: Which Stock Is the Better Value Option?
• Negative Sentiment: Discussion in the financial press about American Water’s proposed ~$48B infrastructure push is raising questions about the size, funding mix and long‑term returns of heavy capex — could pressure valuation if investors worry about financing, execution or lower ROIC. Is American Water’s US$48 Billion Infrastructure Push Altering The Investment Case?

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.

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