American Water Works (NYSE:AWK) Updates FY 2025 Earnings Guidance

Key Points

• American Water Works has provided its FY 2025 earnings guidance with an expected EPS of 5.700-5.750, slightly below the consensus estimate of 5.718.
• The stock has seen mixed analyst ratings, with four analysts issuing a sell rating while six have given a hold rating, resulting in a consensus price target of $141.67.
• Recently, the company announced a quarterly dividend of $0.8275, yielding 2.37%, with a current payout ratio of 60.29%.

American Water Works (NYSE:AWK - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided EPS guidance of 5.700-5.750 for the period, compared to the consensus EPS estimate of 5.718. The company issued revenue guidance of -.

American Water Works Trading Up 3.9%

Shares of American Water Works stock traded up $5.48 on Friday, reaching $145.72. 2,693,138 shares of the company's stock were exchanged, compared to its average volume of 1,403,309. The company has a market capitalization of $28.42 billion, a P/E ratio of 26.26, a price-to-earnings-growth ratio of 3.30 and a beta of 0.69. American Water Works has a 52 week low of $118.74 and a 52 week high of $155.50. The firm's 50-day moving average is $141.20 and its two-hundred day moving average is $138.96. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.44 and a current ratio of 0.49.

American Water Works (NYSE:AWK - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The utilities provider reported $1.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). The business had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.22 billion. American Water Works had a return on equity of 10.40% and a net margin of 21.91%. American Water Works's quarterly revenue was up 11.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.42 earnings per share. Sell-side analysts predict that American Water Works will post 5.71 EPS for the current fiscal year.

American Water Works Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Tuesday, August 12th will be issued a dividend of $0.8275 per share. This represents a $3.31 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Tuesday, August 12th. American Water Works's dividend payout ratio is presently 59.64%.

Analyst Upgrades and Downgrades

AWK has been the topic of a number of research analyst reports. UBS Group restated a "neutral" rating and set a $156.00 price target (up from $154.00) on shares of American Water Works in a report on Friday, July 11th. Evercore ISI increased their target price on American Water Works from $139.00 to $148.00 and gave the stock an "in-line" rating in a report on Friday, May 2nd. Wall Street Zen cut American Water Works from a "hold" rating to a "sell" rating in a report on Wednesday, May 14th. Wells Fargo & Company cut their target price on American Water Works from $147.00 to $141.00 and set an "equal weight" rating on the stock in a report on Friday. Finally, Mizuho increased their target price on American Water Works from $148.00 to $149.00 and gave the stock a "neutral" rating in a report on Friday. Four equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, American Water Works currently has an average rating of "Hold" and a consensus price target of $142.00.

Insiders Place Their Bets

In other American Water Works news, CAO Melissa K. Wikle sold 2,825 shares of the firm's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $143.28, for a total transaction of $404,766.00. Following the transaction, the chief accounting officer directly owned 7,572 shares in the company, valued at approximately $1,084,916.16. This trade represents a 27.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.11% of the company's stock.

Institutional Investors Weigh In On American Water Works

An institutional investor recently raised its position in American Water Works stock. Woodline Partners LP raised its stake in shares of American Water Works Company, Inc. (NYSE:AWK - Free Report) by 40.7% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 16,466 shares of the utilities provider's stock after buying an additional 4,762 shares during the quarter. Woodline Partners LP's holdings in American Water Works were worth $2,429,000 at the end of the most recent reporting period. Hedge funds and other institutional investors own 86.58% of the company's stock.

American Water Works Company Profile

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.