Essential Utilities Inc. (NYSE:WTRG) Given Average Rating of "Hold" by Brokerages

Key Points

• Analysts give Essential Utilities an average recommendation of Hold from eight brokerages (1 sell, 5 hold, 1 buy, 1 strong buy) with an average 1-year price target of $43.20.
• In the most recent quarter the company beat estimates, reporting $0.47 EPS versus $0.36 expected and $699.11M in revenue, up 15.7% year-over-year.
• Essential Utilities declared a quarterly dividend of $0.3426 ($1.37 annualized) for a yield of about 3.3%, with record date May 12 and payable June 1.

Essential Utilities Inc. (NYSE:WTRG - Get Free Report) has been assigned an average recommendation of "Hold" from the eight brokerages that are covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation, one has issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $43.20.

A number of equities analysts have commented on WTRG shares. Barclays set a $38.00 price objective on shares of Essential Utilities and gave the stock an "underweight" rating in a report on Wednesday, December 17th. Weiss Ratings restated a "hold (c+)" rating on shares of Essential Utilities in a research note on Monday, December 29th. Finally, Northcoast Research upgraded Essential Utilities from a "neutral" rating to a "buy" rating and set a $42.00 price target on the stock in a research note on Wednesday, December 3rd.

Essential Utilities Stock Up 1.4%

Shares of NYSE:WTRG opened at $41.66 on Friday. The company has a market capitalization of $11.79 billion, a price-to-earnings ratio of 18.85 and a beta of 0.82. The company has a 50 day moving average of $39.15 and a two-hundred day moving average of $39.09. Essential Utilities has a 52-week low of $36.32 and a 52-week high of $42.37. The company has a quick ratio of 0.65, a current ratio of 0.80 and a debt-to-equity ratio of 1.18.

Essential Utilities (NYSE:WTRG - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.36 by $0.11. The business had revenue of $699.11 million for the quarter, compared to analysts' expectations of $611.60 million. Essential Utilities had a net margin of 24.91% and a return on equity of 9.18%. The business's revenue for the quarter was up 15.7% compared to the same quarter last year. During the same period in the previous year, the company posted $0.67 earnings per share. As a group, analysts forecast that Essential Utilities will post 1.99 earnings per share for the current fiscal year.

Essential Utilities Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Tuesday, May 12th will be issued a dividend of $0.3426 per share. The ex-dividend date is Tuesday, May 12th. This represents a $1.37 annualized dividend and a yield of 3.3%. Essential Utilities's payout ratio is currently 61.99%.

Hedge Funds Weigh In On Essential Utilities

Institutional investors and hedge funds have recently made changes to their positions in the business. GoalVest Advisory LLC bought a new stake in shares of Essential Utilities in the fourth quarter worth $25,000. American National Bank & Trust bought a new position in Essential Utilities during the 3rd quarter valued at $27,000. Fideuram Asset Management Ireland dac acquired a new position in Essential Utilities during the 4th quarter worth $27,000. Atlantic Union Bankshares Corp grew its holdings in Essential Utilities by 1,163.8% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 733 shares of the company's stock worth $29,000 after acquiring an additional 675 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Essential Utilities in the 4th quarter worth about $32,000. 74.78% of the stock is currently owned by hedge funds and other institutional investors.

About Essential Utilities

Essential Utilities, Inc, formerly known as Aqua America, is a publicly traded water and natural gas utility holding company. Through its regulated water and wastewater subsidiaries, the company provides essential water services to residential, commercial and industrial customers. In addition, Essential Utilities delivers natural gas distribution services in Pennsylvania through its Peoples Gas subsidiary, offering integrated utility solutions under a unified corporate framework.

The company traces its roots to the Philadelphia Suburban Water Company, founded in 1886 to serve growing communities outside Philadelphia.

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