California Water Service Group (NYSE:CWT) Share Price Crosses Above 200-Day Moving Average - Should You Sell?

Key Points

• California Water Service Group moved above its 200-day moving average, with shares trading as high as $49.65 and last changing hands near $48.76, suggesting improved near-term momentum.
• Analysts remain mixed: one firm set a $54 price target, while another downgraded the stock to sell. Overall, MarketBeat says the stock still carries a Moderate Buy rating with an average target of $54.50.
• The company recently missed earnings expectations, reporting $0.07 EPS versus $0.25 expected, though revenue rose 5.2% year over year. It also paid a 2.7% dividend yield, while institutional investors continue to own the bulk of the stock.

California Water Service Group (NYSE:CWT - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $44.86 and traded as high as $49.65. California Water Service Group shares last traded at $48.7550, with a volume of 549,574 shares changing hands.

Analyst Upgrades and Downgrades

CWT has been the subject of a number of research reports. Robert W. Baird set a $54.00 price target on California Water Service Group in a research report on Friday, May 1st. Weiss Ratings raised California Water Service Group from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, June 12th. Finally, Wall Street Zen cut California Water Service Group from a "hold" rating to a "sell" rating in a research note on Saturday, June 13th. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $54.50.

California Water Service Group Price Performance

The firm's fifty day moving average price is $45.06 and its 200 day moving average price is $44.86. The firm has a market capitalization of $2.92 billion, a PE ratio of 24.38, a P/E/G ratio of 1.80 and a beta of 0.53. The company has a current ratio of 0.69, a quick ratio of 0.65 and a debt-to-equity ratio of 0.87.

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

California Water Service Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Monday, May 11th were paid a dividend of $0.335 per share. The ex-dividend date was Monday, May 11th. This represents a $1.34 dividend on an annualized basis and a dividend yield of 2.7%. California Water Service Group's dividend payout ratio (DPR) is presently 67.00%.

Insider Transactions at California Water Service Group

In related news, 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 sale, the director directly owned 18,316 shares of the company's stock, valued at $805,904. This trade represents a 5.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Thomas M. Krummel sold 3,700 shares of California Water Service Group stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $43.30, for a total value of $160,210.00. Following the transaction, the director owned 23,805 shares of the company's stock, valued at approximately $1,030,756.50. This represents a 13.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.78% of the company's stock.

Institutional Investors Weigh In On California Water Service Group

Several hedge funds have recently bought and sold shares of the stock. Amundi increased its holdings in shares of California Water Service Group by 26.7% during the 1st quarter. Amundi now owns 3,470,997 shares of the utilities provider's stock valued at $157,421,000 after purchasing an additional 732,004 shares in the last quarter. Millennium Management LLC boosted its holdings in California Water Service Group by 5,365.1% during the third quarter. Millennium Management LLC now owns 368,074 shares of the utilities provider's stock worth $16,891,000 after buying an additional 361,339 shares in the last quarter. ExodusPoint Capital Management LP purchased a new stake in California Water Service Group during the fourth quarter worth $10,349,000. Arrowstreet Capital Limited Partnership grew its position in California Water Service Group by 416.9% during the first quarter. Arrowstreet Capital Limited Partnership now owns 257,970 shares of the utilities provider's stock valued at $11,696,000 after buying an additional 208,061 shares during the period. Finally, KBC Group NV grew its position in 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 valued at $26,172,000 after buying an additional 130,620 shares during the period. Hedge funds and other institutional investors own 82.78% of the company's stock.

About California Water Service Group

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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