Consolidated Water (NASDAQ:CWCO) Stock Price Up 7.5% Following Strong Earnings

Key Points

• Consolidated Water shares rose 7.5% after the company reported quarterly earnings of $0.25 per share, exceeding the $0.20 analyst consensus, while revenue of $32.87 million surpassed estimates of $30.60 million.
• The company paid a quarterly dividend of $0.14 per share, equivalent to an annualized $0.56 dividend and a 1.7% yield; its payout ratio is 62.22%.
• Analyst sentiment remains mixed, with one Buy, one Hold, and one Sell rating, resulting in a consensus “Hold” rating and a $40 target price. Institutional investors and hedge funds own 55.16% of the stock.

Consolidated Water Co. Ltd. (NASDAQ:CWCO - Get Free Report) was up 7.5% during trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $33.66 and last traded at $32.52. 18,269 shares changed hands during trading, a decline of 84% from the average daily volume of 115,786 shares. The stock had previously closed at $30.24.

The utilities provider reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.20 by $0.05. The firm had revenue of $32.87 million for the quarter, compared to analyst estimates of $30.60 million. Consolidated Water had a net margin of 13.50% and a return on equity of 7.81%.

Consolidated Water Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Wednesday, July 1st were given a $0.14 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $0.56 annualized dividend and a yield of 1.7%. Consolidated Water's dividend payout ratio (DPR) is currently 62.22%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on CWCO shares. Wall Street Zen lowered shares of Consolidated Water from a "buy" rating to a "hold" rating in a report on Saturday, May 16th. Weiss Ratings lowered Consolidated Water from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, July 7th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $40.00.

Hedge Funds Weigh In On Consolidated Water

Several institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd increased its stake in shares of Consolidated Water by 1,467.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 768 shares of the utilities provider's stock valued at $27,000 after acquiring an additional 719 shares in the last quarter. Quarry LP bought a new position in Consolidated Water during the third quarter worth $40,000. Tower Research Capital LLC TRC grew its holdings in Consolidated Water by 335.7% in the second quarter. Tower Research Capital LLC TRC now owns 1,512 shares of the utilities provider's stock worth $45,000 after purchasing an additional 1,165 shares during the period. Kemnay Advisory Services Inc. acquired a new stake in Consolidated Water in the fourth quarter worth $51,000. Finally, State of Alaska Department of Revenue raised its holdings in shares of Consolidated Water by 382.7% during the fourth quarter. State of Alaska Department of Revenue now owns 2,317 shares of the utilities provider's stock valued at $80,000 after purchasing an additional 1,837 shares during the period. 55.16% of the stock is owned by institutional investors and hedge funds.

Consolidated Water Price Performance

The firm's fifty day moving average price is $29.52 and its two-hundred day moving average price is $32.51. The stock has a market cap of $527.52 million, a price-to-earnings ratio of 36.57 and a beta of 0.51.

Consolidated Water Company Profile

Consolidated Water Co Ltd. is a developer, operator and manufacturer of water treatment and desalination systems. The company designs, engineers, builds and operates reverse-osmosis desalination plants and water treatment facilities, offering both turnkey project delivery and ongoing operations and maintenance services. Its product portfolio includes modular desalination units, water distribution systems, filtration membranes and associated equipment for potable water production.

Consolidated Water serves municipalities, resorts, commercial enterprises and private customers in the Caribbean and the southeastern United States.

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