Essential Utilities Inc. (NYSE:WTRG) Sees Significant Decrease in Short Interest

Key Points

• Short interest dropped 15.9% in April to 4,258,170 shares (about 1.5% of the float), leaving a short-interest ratio of 2.1 days based on average daily volume.
• Dividend announced: $0.3426 per share quarterly (annualized $1.37) payable June 1 with an ex-dividend/record date of May 12, implying a yield of 3.6%.
• The company recently beat quarterly EPS estimates ($0.47 vs. $0.36) and reported revenue up 15.7% year-over-year, though analysts' consensus remains a Hold with a $43.20 price target amid mixed analyst ratings.

Essential Utilities Inc. (NYSE:WTRG - Get Free Report) was the recipient of a significant drop in short interest in the month of April. As of April 15th, there was short interest totaling 4,258,170 shares, a drop of 15.9% from the March 31st total of 5,066,077 shares. Based on an average daily trading volume, of 2,011,737 shares, the short-interest ratio is currently 2.1 days. Approximately 1.5% of the shares of the company are sold short.

Analyst Upgrades and Downgrades

Separately, Argus raised Essential Utilities to a "strong-buy" rating in a report on Monday, March 23rd. Two research analysts have rated the stock with a Strong Buy rating, one has given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $43.20.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. GoalVest Advisory LLC bought a new position in Essential Utilities during the fourth quarter valued at about $25,000. Evolution Wealth Management Inc. bought a new position in Essential Utilities during the first quarter valued at about $27,000. American National Bank & Trust bought a new position in Essential Utilities during the third quarter valued at about $27,000. Atlantic Union Bankshares Corp boosted its stake in Essential Utilities by 1,163.8% during the third quarter. Atlantic Union Bankshares Corp now owns 733 shares of the company's stock valued at $29,000 after buying an additional 675 shares in the last quarter. Finally, Fideuram Asset Management Ireland dac bought a new position in Essential Utilities during the fourth quarter valued at about $27,000. Institutional investors own 74.78% of the company's stock.

Essential Utilities Stock Performance

Shares of WTRG traded down $0.10 during trading hours on Friday, reaching $38.10. 319,082 shares of the company's stock traded hands, compared to its average volume of 2,422,420. The firm has a market capitalization of $10.79 billion, a price-to-earnings ratio of 17.24 and a beta of 0.78. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.80 and a quick ratio of 0.65. Essential Utilities has a twelve month low of $36.32 and a twelve month high of $42.37. The business's fifty day simple moving average is $40.04 and its two-hundred day simple moving average is $39.39.

Essential Utilities (NYSE:WTRG - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.11. The company had revenue of $699.11 million for the quarter, compared to analyst estimates of $611.60 million. Essential Utilities had a return on equity of 9.18% and a net margin of 24.91%.The company's quarterly revenue was up 15.7% compared to the same quarter last year. During the same period last year, the company earned $0.67 earnings per share. Analysts predict that Essential Utilities will post 2.25 earnings per share for the current year.

Essential Utilities Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Investors of record on Tuesday, May 12th will be paid a dividend of $0.3426 per share. The ex-dividend date of this dividend is Tuesday, May 12th. This represents a $1.37 annualized dividend and a yield of 3.6%. Essential Utilities's dividend payout ratio (DPR) is currently 61.99%.

Essential Utilities Company Profile

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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