Essential Utilities Inc. (NYSE:WTRG) Stock Has Average Target Price of $43.75

Key Points

• Analyst sentiment is moderately bullish: Nine firms rate Essential Utilities a consensus “Moderate Buy,” with an average 12-month price target of $43.75 versus the reported share price of $39.16.
• The company exceeded quarterly EPS expectations, reporting $0.38 per share versus a $0.37 consensus estimate, while revenue rose 3.1% year over year to $530.85 million but fell short of estimates.
• Essential Utilities increased its quarterly dividend to $0.3606, representing an annualized payout of $1.44 and a 3.7% dividend yield; institutional investors own 74.78% of the company.

Shares of Essential Utilities Inc. (NYSE:WTRG - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the nine ratings firms that are presently covering the firm, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, three have issued a hold rating, three have given a buy rating and two have assigned a strong buy rating to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $43.75.

A number of equities analysts have recently issued reports on WTRG shares. Wall Street Zen upgraded Essential Utilities to a "sell" rating in a report on Saturday, July 4th. Barclays raised their price objective on Essential Utilities from $38.00 to $40.00 and gave the company an "underweight" rating in a report on Wednesday, July 15th. UBS Group boosted their target price on Essential Utilities from $48.00 to $49.00 and gave the stock a "buy" rating in a research report on Thursday, September 10th. Finally, Weiss Ratings raised Essential Utilities from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, September 2nd.

Insider Buying and Selling at Essential Utilities

In related news, insider Colleen Arnold sold 2,855 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $39.55, for a total transaction of $112,915.25. Following the completion of the sale, the insider directly owned 17,347 shares in the company, valued at $686,073.85. This represents a 14.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.36% of the company's stock.

Institutional Trading of Essential Utilities

Several hedge funds and other institutional investors have recently bought and sold shares of WTRG. Evolution Wealth Management Inc. purchased a new position in shares of Essential Utilities in the first quarter worth $27,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Essential Utilities during the 2nd quarter valued at $33,000. Motiv8 Investments LLC purchased a new stake in Essential Utilities during the 4th quarter valued at $35,000. Cassaday & Co Wealth Management LLC bought a new stake in Essential Utilities in the 1st quarter worth $40,000. Finally, Root Financial Partners LLC grew its holdings in Essential Utilities by 111.1% in the 1st quarter. Root Financial Partners LLC now owns 1,030 shares of the company's stock worth $41,000 after acquiring an additional 542 shares during the last quarter. Institutional investors own 74.78% of the company's stock.

Essential Utilities Stock Performance

NYSE WTRG opened at $39.16 on Thursday. Essential Utilities has a 52-week low of $36.10 and a 52-week high of $42.51. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.62 and a current ratio of 0.78. The company has a market capitalization of $11.11 billion, a P/E ratio of 19.98, a P/E/G ratio of 2.95 and a beta of 0.64. The company has a fifty day moving average of $40.52 and a 200-day moving average of $39.31.

Essential Utilities (NYSE:WTRG - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.38 earnings per share (EPS) for the quarter, topping 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 company had revenue of $530.85 million during the quarter, compared to analyst estimates of $538.90 million. During the same period in the previous year, the business earned $0.38 earnings per share. The firm's quarterly revenue was up 3.1% compared to the same quarter last year. As a group, equities research analysts predict that Essential Utilities will post 2.21 EPS for the current fiscal year.

Essential Utilities Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th were issued a $0.3606 dividend. This is an increase from Essential Utilities's previous quarterly dividend of $0.3426. This represents a $1.44 annualized dividend and a dividend yield of 3.7%. The ex-dividend date was Tuesday, August 11th. Essential Utilities's dividend payout ratio (DPR) is presently 73.47%.

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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