American Water Works (NYSE:AWK) Sees Large Volume Increase - Still a Buy?

Key Points

• American Water Works shares experienced a trading volume increase of 4%, with 1,463,808 shares traded, but the stock price fell to $141.11 from a previous close of $147.00.
• Wall Street analysts have mixed opinions on the stock, with price targets ranging from $128.00 to $156.00, and a consensus rating of "Hold" based on recent evaluations.
• The company reported earnings of $1.48 per share, missing estimates slightly, though revenue increased by 11.1% year-over-year to $1.28 billion.

American Water Works Company, Inc. (NYSE:AWK - Get Free Report) shares saw strong trading volume on Tuesday . 1,463,808 shares traded hands during mid-day trading, an increase of 4% from the previous session's volume of 1,402,920 shares.The stock last traded at $141.11 and had previously closed at $147.00.

Wall Street Analysts Forecast Growth

Several brokerages have commented on AWK. Wells Fargo & Company decreased their price target on shares of American Water Works from $147.00 to $141.00 and set an "equal weight" rating for the company in a research report on Friday. UBS Group reissued a "neutral" rating and issued a $156.00 price target (up previously from $154.00) on shares of American Water Works in a research report on Friday, July 11th. Barclays decreased their price objective on shares of American Water Works from $138.00 to $128.00 and set an "underweight" rating for the company in a research report on Thursday, July 10th. Mizuho lifted their price objective on shares of American Water Works from $148.00 to $149.00 and gave the stock a "neutral" rating in a research report on Friday. Finally, Evercore ISI lifted their price objective on shares of American Water Works from $139.00 to $148.00 and gave the stock an "in-line" rating in a research report on Friday, May 2nd. Four equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $142.00.

American Water Works Trading Down 3.9%

The stock has a market capitalization of $27.57 billion, a PE ratio of 25.43, a PEG ratio of 3.45 and a beta of 0.65. The company has a quick ratio of 0.32, a current ratio of 0.35 and a debt-to-equity ratio of 1.15. The business's 50-day moving average is $141.31 and its two-hundred day moving average is $139.46.

American Water Works (NYSE:AWK - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The utilities provider reported $1.48 earnings per share for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). American Water Works had a net margin of 21.91% and a return on equity of 10.34%. The company had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.22 billion. During the same period last year, the firm earned $1.42 earnings per share. American Water Works's revenue was up 11.1% on a year-over-year basis. On average, analysts anticipate that American Water Works Company, Inc. will post 5.71 earnings per share for the current fiscal year.

American Water Works Announces Dividend

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

Insider Buying and Selling

In other American Water Works news, CAO Melissa K. Wikle sold 2,825 shares of American Water Works stock in a transaction on Friday, May 30th. The shares were sold at an average price of $143.28, for a total value 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. The trade was a 27.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.11% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Oliver Lagore Vanvalin Investment Group acquired a new position in American Water Works in the second quarter valued at $28,000. Concord Wealth Partners acquired a new position in shares of American Water Works during the second quarter worth about $28,000. Cloud Capital Management LLC acquired a new position in shares of American Water Works during the first quarter worth about $29,000. WPG Advisers LLC acquired a new position in shares of American Water Works during the first quarter worth about $29,000. Finally, Flaharty Asset Management LLC acquired a new position in shares of American Water Works during the first quarter worth about $30,000. 86.58% of the stock is currently owned by institutional investors and hedge funds.

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.

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