Consolidated Water (NASDAQ:CWCO) Trading Down 4.1% - Time to Sell?

Key Points

• Shares fell 4.1% on Monday to about $33.86 (intraday low $33.63) on 103,663 shares traded (down ~11% vs. average); the company has a market cap of $539.1M and a P/E of 34.8.
• Analyst actions are mixed — Weiss upgraded to a Buy while Zacks cut to Strong Sell and Wall Street Zen lowered to Hold, leaving a consensus rating of "Hold" with a $40.00 target.
• Fundamentals and corporate moves are mixed: the company missed quarterly estimates (EPS $0.18 vs. $0.28 expected; revenue $29.65M vs. $35.50M), announced a $0.14 quarterly dividend (1.7% yield), and an insider bought 3,310 shares.

Consolidated Water Co. Ltd. (NASDAQ:CWCO - Get Free Report) shares fell 4.1% during trading on Monday . The stock traded as low as $33.63 and last traded at $33.8550. 103,663 shares were traded during trading, a decline of 11% from the average session volume of 116,214 shares. The stock had previously closed at $35.31.

Analyst Ratings Changes

Several research firms have commented on CWCO. Weiss Ratings raised Consolidated Water from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 1st. Zacks Research lowered Consolidated Water from a "hold" rating to a "strong sell" rating in a research report on Tuesday, March 31st. Finally, Wall Street Zen lowered Consolidated Water from a "strong-buy" rating to a "hold" rating in a research report on Saturday, March 21st. Two investment analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $40.00.

Consolidated Water Stock Down 4.4%

The firm has a market cap of $539.10 million, a price-to-earnings ratio of 34.81 and a beta of 0.56. The stock has a fifty day moving average price of $35.30 and a 200-day moving average price of $35.32.

Consolidated Water (NASDAQ:CWCO - Get Free Report) last released its earnings results on Tuesday, March 17th. The utilities provider reported $0.18 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.28 by ($0.10). The company had revenue of $29.65 million during the quarter, compared to analyst estimates of $35.50 million. Consolidated Water had a net margin of 13.88% and a return on equity of 8.39%. As a group, research analysts expect that Consolidated Water Co. Ltd. will post 1.27 earnings per share for the current year.

Consolidated Water Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Wednesday, April 1st will be issued a $0.14 dividend. The ex-dividend date of this dividend is Wednesday, April 1st. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.7%. Consolidated Water's payout ratio is presently 57.73%.

Insider Activity

In related news, Director Maria Elena Giner bought 3,310 shares of the company's stock in a transaction dated Thursday, March 19th. The shares were acquired at an average price of $30.24 per share, with a total value of $100,094.40. Following the completion of the acquisition, the director owned 3,310 shares in the company, valued at approximately $100,094.40. This trade represents a ∞ increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 6.25% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of CWCO. AQR Capital Management LLC increased its holdings in shares of Consolidated Water by 41.7% in the first quarter. AQR Capital Management LLC now owns 46,480 shares of the utilities provider's stock valued at $1,138,000 after purchasing an additional 13,686 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Consolidated Water by 6.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,418 shares of the utilities provider's stock worth $304,000 after acquiring an additional 798 shares during the period. Goldman Sachs Group Inc. grew its holdings in Consolidated Water by 8.3% during the first quarter. Goldman Sachs Group Inc. now owns 171,037 shares of the utilities provider's stock worth $4,189,000 after acquiring an additional 13,061 shares during the period. Jane Street Group LLC acquired a new position in Consolidated Water during the first quarter worth $230,000. Finally, Strs Ohio acquired a new position in Consolidated Water during the first quarter worth $130,000. Institutional investors and hedge funds own 55.16% of the company's stock.

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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