Essential Utilities (NYSE:WTRG) Stock Gets Price Target Trim from UBS Group

Key Points

• UBS Group lowered Essential Utilities’ price target from $49 to $47 but maintained a “buy” rating, implying 15.48% upside from the stock’s $40.70 price.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and average price target of $43.25, despite mixed views ranging from “strong buy” to “sell.”
• Essential Utilities slightly beat quarterly EPS expectations at $0.38 versus $0.37, while revenue increased 3.1% year over year to $530.85 million but fell short of estimates.

Essential Utilities (NYSE:WTRG - Get Free Report) had its target price reduced by investment analysts at UBS Group from $49.00 to $47.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has a "buy" rating on the stock. UBS Group's price target indicates a potential upside of 15.48% from the company's current price.

A number of other brokerages have also issued reports on WTRG. Wall Street Zen raised Essential Utilities to a "sell" rating in a research report on Saturday, July 4th. Barclays increased their price target on Essential Utilities from $38.00 to $40.00 and gave the company an "underweight" rating in a report on Wednesday, July 15th. Finally, Weiss Ratings upgraded Essential Utilities from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, September 2nd. Two investment analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $43.25.

Essential Utilities Price Performance

Shares of WTRG stock traded up $0.41 during trading hours on Friday, hitting $40.70. The company's stock had a trading volume of 691,951 shares, compared to its average volume of 2,259,551. The company has a current ratio of 0.78, a quick ratio of 0.62 and a debt-to-equity ratio of 1.20. The business has a fifty day moving average of $40.36 and a 200-day moving average of $39.20. The stock has a market cap of $11.55 billion, a price-to-earnings ratio of 20.77, a P/E/G ratio of 3.00 and a beta of 0.63. Essential Utilities has a twelve month low of $36.10 and a twelve month high of $42.51.

Essential Utilities (NYSE:WTRG - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.01. Essential Utilities had a net margin of 21.60% and a return on equity of 8.23%. The business had revenue of $530.85 million for the quarter, compared to the consensus estimate of $538.90 million. During the same quarter in the prior year, the firm posted $0.38 earnings per share. The company's quarterly revenue was up 3.1% compared to the same quarter last year. As a group, equities research analysts anticipate that Essential Utilities will post 2.21 EPS for the current year.

Insider Buying and Selling at Essential Utilities

In related news, insider Colleen Arnold sold 2,855 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $39.55, for a total transaction of $112,915.25. Following the transaction, the insider owned 17,347 shares in the company, valued at $686,073.85. This trade represents a 14.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.36% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Essential Utilities

A number of hedge funds have recently modified their holdings of WTRG. Evolution Wealth Management Inc. purchased a new stake in shares of Essential Utilities in the first quarter valued at $27,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of Essential Utilities during the second quarter valued at $33,000. Cassaday & Co Wealth Management LLC acquired a new position in Essential Utilities during the first quarter valued at $40,000. Root Financial Partners LLC raised its position in Essential Utilities by 111.1% during the first quarter. Root Financial Partners LLC now owns 1,030 shares of the company's stock valued at $41,000 after buying an additional 542 shares during the period. Finally, Orion Capital Management LLC acquired a new position in Essential Utilities during the second quarter valued at $43,000. 74.78% of the stock is currently owned by institutional investors and hedge funds.

About Essential Utilities

Essential Utilities, Inc is a regulated utility company that provides essential water, wastewater and natural gas services to residential, commercial, industrial and municipal customers. Its water operations include the treatment, distribution and supply of drinking water, while its wastewater business manages the collection and treatment of sewage. The company also distributes natural gas through regulated utility operations.

The company serves customers across several U.S. states, including Pennsylvania, Ohio, Illinois, Texas, North Carolina, New Jersey, Indiana, Virginia, Georgia and West Virginia.

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