California Water Service Group (NYSE:CWT) Stock Price Down 6.9% Following Weak Earnings

Key Points

• Shares fell 6.9% after the company reported Q results with EPS of $0.07 versus a $0.25 consensus (miss by $0.18), though revenue beat at $214.57M versus $210.27M and was up 5.2% year-over-year.
• California Water Service declared a quarterly dividend of $0.335 per share (annualized $1.34) giving a yield of 3.2%, with record/ex-dividend date on May 11 and payment on May 22.
• Market sentiment is mixed: Weiss slightly downgraded its rating, MarketBeat shows a consensus of "Moderate Buy" with a $55 average price target, and company insiders recently sold shares while institutional ownership stands at about 82.8%.

California Water Service Group (NYSE:CWT - Get Free Report)'s share price traded down 6.9% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $42.59 and last traded at $42.2470. 379,451 shares changed hands during mid-day trading, a decline of 14% from the average session volume of 443,345 shares. The stock had previously closed at $45.38.

The utilities provider reported $0.07 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.18). California Water Service Group had a net margin of 12.82% and a return on equity of 7.67%. The firm had revenue of $214.57 million for the quarter, compared to analyst estimates of $210.27 million. During the same quarter in the prior year, the firm earned $0.22 earnings per share. The firm's revenue for the quarter was up 5.2% on a year-over-year basis.

California Water Service Group Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Monday, May 11th will be given a dividend of $0.335 per share. The ex-dividend date of this dividend is Monday, May 11th. This represents a $1.34 dividend on an annualized basis and a yield of 3.2%. California Water Service Group's dividend payout ratio is 62.33%.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered shares of California Water Service Group from a "hold (c)" rating to a "hold (c-)" rating in a report on Friday, April 24th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $55.00.

Insider Buying and Selling

In other news, VP Michael S. Mares, Jr. sold 3,892 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $44.00, for a total transaction of $171,248.00. Following the completion of the transaction, the vice president directly owned 8,525 shares of the company's stock, valued at $375,100. This represents a 31.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Michael B. Luu sold 740 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $44.53, for a total transaction of $32,952.20. Following the completion of the transaction, the vice president directly owned 23,655 shares of the company's stock, valued at approximately $1,053,357.15. This trade represents a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.78% of the stock is owned by corporate insiders.

Institutional Trading of California Water Service Group

A number of hedge funds have recently made changes to their positions in CWT. Farther Finance Advisors LLC increased its position in shares of California Water Service Group by 3,318.8% in the third quarter. Farther Finance Advisors LLC now owns 547 shares of the utilities provider's stock valued at $25,000 after acquiring an additional 531 shares during the period. Danske Bank A S purchased a new position in shares of California Water Service Group during the third quarter valued at about $28,000. EverSource Wealth Advisors LLC increased its position in shares of California Water Service Group by 109.9% during the second quarter. EverSource Wealth Advisors LLC now owns 697 shares of the utilities provider's stock valued at $32,000 after buying an additional 365 shares during the period. Hantz Financial Services Inc. increased its position in shares of California Water Service Group by 291.1% during the third quarter. Hantz Financial Services Inc. now owns 880 shares of the utilities provider's stock valued at $40,000 after buying an additional 655 shares during the period. Finally, Aster Capital Management DIFC Ltd purchased a new position in shares of California Water Service Group during the third quarter valued at about $43,000. 82.78% of the stock is owned by institutional investors.

California Water Service Group Price Performance

The company has a quick ratio of 0.80, a current ratio of 0.85 and a debt-to-equity ratio of 0.87. The firm's 50-day moving average is $45.50 and its 200-day moving average is $45.30. The company has a market cap of $2.53 billion, a PE ratio of 19.66, a PEG ratio of 1.71 and a beta of 0.61.

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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