California Water Service Group (NYSE:CWT) Hits New 12-Month High - Should You Buy?

Key Points

• California Water Service Group hit a new 52-week high, trading as high as $51.00 and ending near $50.95, up about 3% on the day.
• Analyst sentiment is mixed but generally constructive: the stock carries an average “Moderate Buy” rating with an average price target of $54.50, though one firm recently downgraded it to sell.
• The company’s latest earnings showed EPS of $0.07, well below estimates, even as revenue came in above expectations and rose 5.2% year over year; it also pays a 2.6% dividend yield.

California Water Service Group (NYSE:CWT - Get Free Report) hit a new 52-week high during trading on Thursday . The company traded as high as $51.00 and last traded at $50.9470, with a volume of 147560 shares. The stock had previously closed at $49.73.

Analysts Set New Price Targets

Several research firms have commented on CWT. Weiss Ratings raised shares of California Water Service Group from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, June 12th. Wall Street Zen lowered shares of California Water Service Group from a "hold" rating to a "sell" rating in a research report on Saturday, June 13th. Finally, Robert W. Baird set a $54.00 target price on shares of California Water Service Group in a research report on Friday, May 1st. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $54.50.

California Water Service Group Trading Up 3.0%

The business's 50-day moving average price is $45.99 and its two-hundred day moving average price is $45.34. The company has a market capitalization of $3.06 billion, a P/E ratio of 25.60, a PEG ratio of 1.84 and a beta of 0.51. The company has a debt-to-equity ratio of 0.87, a current ratio of 0.69 and a quick ratio of 0.65.

California Water Service Group (NYSE:CWT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The utilities provider reported $0.07 EPS for the quarter, missing analysts' consensus estimates of $0.25 by ($0.18). The firm had revenue of $214.57 million during the quarter, compared to the consensus estimate of $210.27 million. California Water Service Group had a net margin of 11.77% and a return on equity of 7.06%. The business's revenue for the quarter was up 5.2% on a year-over-year basis. During the same quarter last year, the firm earned $0.22 earnings per share. As a group, analysts forecast that California Water Service Group will post 2.56 EPS for the current fiscal year.

California Water Service Group Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Monday, May 11th were issued a $0.335 dividend. This represents a $1.34 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Monday, May 11th. California Water Service Group's dividend payout ratio is currently 67.00%.

Insider Activity at California Water Service Group

In other California Water Service Group news, Director Thomas M. Krummel sold 3,700 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $43.30, for a total value of $160,210.00. Following the transaction, the director directly owned 23,805 shares of the company's stock, valued at $1,030,756.50. This represents a 13.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Lester A. Snow sold 1,100 shares of the firm's stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $44.00, for a total transaction of $48,400.00. Following the transaction, the director directly owned 18,316 shares in the company, valued at approximately $805,904. This represents a 5.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.78% of the company's stock.

Institutional Investors Weigh In On California Water Service Group

Several hedge funds and other institutional investors have recently made changes to their positions in CWT. Amundi boosted its stake in California Water Service Group by 26.7% during the first quarter. Amundi now owns 3,470,997 shares of the utilities provider's stock worth $157,421,000 after acquiring an additional 732,004 shares in the last quarter. Millennium Management LLC grew its stake in California Water Service Group by 5,365.1% in the 3rd quarter. Millennium Management LLC now owns 368,074 shares of the utilities provider's stock valued at $16,891,000 after purchasing an additional 361,339 shares during the period. ExodusPoint Capital Management LP purchased a new stake in shares of California Water Service Group during the 4th quarter worth approximately $10,349,000. Arrowstreet Capital Limited Partnership raised its stake in California Water Service Group by 416.9% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 257,970 shares of the utilities provider's stock valued at $11,696,000 after acquiring an additional 208,061 shares during the period. Finally, KBC Group NV lifted its position in shares of California Water Service Group by 29.2% during the first quarter. KBC Group NV now owns 577,247 shares of the utilities provider's stock worth $26,172,000 after acquiring an additional 130,620 shares in the last quarter. 82.78% of the stock is owned by institutional investors.

California Water Service Group Company Profile

California Water Service Group NYSE: CWT is a publicly traded holding company that provides regulated water utility services through its subsidiaries. The company delivers safe, reliable drinking water and wastewater management to residential, commercial, industrial and municipal customers across California, Hawaii and New Mexico. Its principal operating units include California Water Service, New Mexico Water Service and Hawaii Water Service, each responsible for end‐to‐end water supply operations—from source development and treatment to distribution and customer service.

Founded in 1926 as the California Water Service Company, the group has grown to become one of the largest investor‐owned water utilities in the United States by customer count.

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