H2O America (NASDAQ:HTO) Given Consensus Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate H2O America a “Moderate Buy”: Five of nine analysts recommend buying the stock, while four rate it a hold. The average 12-month price target is $65.67, with individual targets reaching $70.
• Quarterly earnings exceeded expectations: H2O America reported earnings of $0.72 per share versus the $0.70 consensus estimate, on revenue of $210.47 million. The company issued fiscal 2026 EPS guidance of $3.08 to $3.18.
• Investors received a quarterly dividend of $0.44 per share: The annualized dividend is $1.76, representing a 2.8% yield and a 62.19% payout ratio. Institutional investors own 84.29% of the company, while an affiliated major shareholder recently increased its stake.

H2O America (NASDAQ:HTO - Get Free Report) has received an average rating of "Moderate Buy" from the nine research firms that are currently covering the firm, MarketBeat Ratings reports. Four analysts have rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $65.6667.

A number of brokerages have issued reports on HTO. Zacks Research raised shares of H2O America from a "strong sell" rating to a "hold" rating in a report on Monday, June 22nd. Barclays raised their target price on H2O America from $60.00 to $67.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Seaport Research Partners restated a "buy" rating and set a $67.00 price target on shares of H2O America in a report on Wednesday, August 12th. Wall Street Zen raised H2O America from a "sell" rating to a "hold" rating in a research report on Sunday, August 16th. Finally, BTIG Research set a $70.00 price objective on H2O America in a report on Wednesday, July 29th.

Insider Buying and Selling

In other H2O America news, major shareholder Atlas Infrastructure Partners purchased 2,784 shares of the company's stock in a transaction that occurred on Tuesday, July 7th. The stock was bought at an average price of $62.03 per share, with a total value of $172,691.52. Following the completion of the purchase, the insider directly owned 4,615,265 shares of the company's stock, valued at $286,284,887.95. The trade was a 0.06% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. 0.52% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Quadrant Capital Group LLC boosted its stake in shares of H2O America by 194.9% during the 4th quarter. Quadrant Capital Group LLC now owns 525 shares of the utilities provider's stock valued at $26,000 after purchasing an additional 347 shares in the last quarter. Parallel Advisors LLC boosted its position in H2O America by 1,020.8% during the 4th quarter. Parallel Advisors LLC now owns 594 shares of the utilities provider's stock valued at $29,000 after acquiring an additional 541 shares in the last quarter. Public Employees Retirement System of Ohio purchased a new position in shares of H2O America during the 2nd quarter worth approximately $37,000. Bessemer Group Inc. raised its position in shares of H2O America by 44.6% in the 1st quarter. Bessemer Group Inc. now owns 661 shares of the utilities provider's stock worth $39,000 after acquiring an additional 204 shares in the last quarter. Finally, Allworth Financial LP purchased a new position in shares of H2O America in the 2nd quarter valued at approximately $42,000. 84.29% of the stock is owned by hedge funds and other institutional investors.

H2O America Stock Performance

NASDAQ:HTO opened at $63.03 on Friday. The firm has a market cap of $2.64 billion, a PE ratio of 22.27, a price-to-earnings-growth ratio of 7.41 and a beta of 0.34. H2O America has a fifty-two week low of $43.75 and a fifty-two week high of $67.09. The company has a debt-to-equity ratio of 1.02, a quick ratio of 1.67 and a current ratio of 1.67. The business has a 50 day moving average price of $63.16 and a 200-day moving average price of $59.65.

H2O America (NASDAQ:HTO - Get Free Report) last issued its earnings results on Monday, July 27th. The utilities provider reported $0.72 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.70 by $0.02. H2O America had a net margin of 12.91% and a return on equity of 6.65%. The firm had revenue of $210.47 million for the quarter. H2O America has set its FY 2026 guidance at 3.080-3.180 EPS. Equities research analysts predict that H2O America will post 2.8 earnings per share for the current year.

H2O America Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 10th were issued a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Monday, August 10th. H2O America's dividend payout ratio is currently 62.19%.

About H2O America

SJW Group, through its subsidiaries, provides water utility and other related services in the United States. It operates in Water Utility Services and Real Estate Services segments. The company engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District.

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