Short Interest in Essential Utilities Inc. (NYSE:WTRG) Grows By 21.6%

Key Points

• Essential Utilities Inc. has seen a significant increase in short interest, growing by 21.6% in August to a total of 4,890,000 shares, reflecting a short interest of 1.7% of its shares.
• The company recently raised its quarterly dividend to $0.3426, resulting in an annualized yield of 3.7%, an increase from the previous quarterly dividend of $0.33.
• Analysts have a generally positive outlook on Essential Utilities, with five analysts rating it as a Buy and recent price targets ranging from $42.00 to $47.00.

Essential Utilities Inc. (NYSE:WTRG - Get Free Report) was the recipient of a significant increase in short interest in the month of August. As of August 31st, there was short interest totaling 4,890,000 shares, an increase of 21.6% from the August 15th total of 4,020,000 shares. Based on an average daily trading volume, of 1,890,000 shares, the short-interest ratio is currently 2.6 days. Approximately 1.7% of the shares of the stock are short sold. Approximately 1.7% of the shares of the stock are short sold. Based on an average daily trading volume, of 1,890,000 shares, the short-interest ratio is currently 2.6 days.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in WTRG. SouthState Corp raised its stake in shares of Essential Utilities by 834.7% in the second quarter. SouthState Corp now owns 701 shares of the company's stock valued at $26,000 after acquiring an additional 626 shares in the last quarter. Headlands Technologies LLC acquired a new stake in shares of Essential Utilities in the first quarter valued at $31,000. Kennebec Savings Bank acquired a new stake in shares of Essential Utilities in the second quarter valued at $31,000. Valley National Advisers Inc. acquired a new stake in shares of Essential Utilities in the first quarter valued at $33,000. Finally, American National Bank & Trust acquired a new stake in shares of Essential Utilities in the first quarter valued at $35,000. 74.78% of the stock is currently owned by institutional investors and hedge funds.

Essential Utilities Stock Up 0.3%

Shares of Essential Utilities stock traded up $0.10 during trading on Monday, reaching $37.12. The company's stock had a trading volume of 529,594 shares, compared to its average volume of 1,768,006. The company has a quick ratio of 0.58, a current ratio of 0.73 and a debt-to-equity ratio of 1.13. The company has a market cap of $10.41 billion, a price-to-earnings ratio of 15.91, a P/E/G ratio of 3.40 and a beta of 0.83. Essential Utilities has a 1-year low of $33.18 and a 1-year high of $41.65. The company has a 50-day simple moving average of $38.26 and a two-hundred day simple moving average of $38.60.

Essential Utilities (NYSE:WTRG - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.38 EPS for the quarter, topping analysts' consensus estimates of $0.29 by $0.09. The company had revenue of $514.91 million during the quarter, compared to analysts' expectations of $462.70 million. Essential Utilities had a return on equity of 10.10% and a net margin of 27.62%.The firm's revenue was up 18.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.28 EPS. Essential Utilities has set its FY 2025 guidance at 2.070-2.110 EPS. As a group, equities analysts forecast that Essential Utilities will post 1.99 earnings per share for the current year.

Essential Utilities Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Stockholders of record on Tuesday, August 12th were issued a dividend of $0.3426 per share. The ex-dividend date was Tuesday, August 12th. This represents a $1.37 annualized dividend and a dividend yield of 3.7%. This is an increase from Essential Utilities's previous quarterly dividend of $0.33. Essential Utilities's payout ratio is presently 58.80%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. UBS Group lifted their price target on Essential Utilities from $42.00 to $47.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Zacks Research downgraded Essential Utilities from a "strong-buy" rating to a "hold" rating in a report on Monday, August 25th. Wall Street Zen upgraded Essential Utilities from a "sell" rating to a "hold" rating in a research report on Sunday, August 31st. Finally, Robert W. Baird increased their target price on Essential Utilities from $46.00 to $47.00 and gave the stock an "outperform" rating in a research report on Monday, August 4th. Four equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $44.40.

Essential Utilities Company Profile

Essential Utilities, Inc, through its subsidiaries, operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company operates through Regulated Water and Regulated Natural Gas segments. It offers water services through operating and maintenance contract with municipal authorities and other parties.