Essential Utilities (NYSE:WTRG) Coverage Initiated by Analysts at Barclays

Key Points

• Analysts at Barclays have initiated coverage of Essential Utilities (NYSE:WTRG) with an "overweight" rating and a price target of $42.00, suggesting an anticipated upside of 8.21% from its previous close.
• The consensus rating for Essential Utilities is currently a "Moderate Buy" with a consensus price target of $44.00, backed by five Buy ratings and two Hold ratings from other analysts.
• Essential Utilities reported a quarterly earnings per share of $0.38, exceeding the consensus estimate by $0.09, with revenue growth of 18.5% year-over-year, highlighting strong financial performance.

Stock analysts at Barclays initiated coverage on shares of Essential Utilities (NYSE:WTRG - Get Free Report) in a report issued on Thursday,Benzinga reports. The firm set an "overweight" rating and a $42.00 price target on the stock. Barclays's price target indicates a potential upside of 8.21% from the stock's previous close.

Other equities analysts have also recently issued research reports about the stock. Robert W. Baird lifted their price objective on shares of Essential Utilities from $46.00 to $47.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. UBS Group lifted their target price on Essential Utilities from $42.00 to $47.00 and gave the company a "buy" rating in a research note on Friday, August 15th. Zacks Research lowered Essential Utilities from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 25th. Finally, Wall Street Zen upgraded Essential Utilities from a "sell" rating to a "hold" rating in a research report on Sunday, August 31st. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, Essential Utilities presently has a consensus rating of "Moderate Buy" and a consensus price target of $44.00.

Essential Utilities Price Performance

Shares of NYSE:WTRG opened at $38.81 on Thursday. Essential Utilities has a twelve month low of $33.18 and a twelve month high of $41.65. The company's 50 day moving average is $38.39 and its 200 day moving average is $38.54. The company has a current ratio of 0.73, a quick ratio of 0.58 and a debt-to-equity ratio of 1.13. The company has a market cap of $10.89 billion, a PE ratio of 16.66, a price-to-earnings-growth ratio of 3.66 and a beta of 0.82.

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

Institutional Investors Weigh In On Essential Utilities

A number of hedge funds have recently modified their holdings of WTRG. SouthState Corp grew its stake in Essential Utilities by 834.7% in the 2nd quarter. SouthState Corp now owns 701 shares of the company's stock valued at $26,000 after buying an additional 626 shares in the last quarter. Headlands Technologies LLC purchased a new position in Essential Utilities in the 1st quarter valued at approximately $31,000. Kennebec Savings Bank purchased a new position in Essential Utilities in the 2nd quarter valued at approximately $31,000. Valley National Advisers Inc. purchased a new position in Essential Utilities in the 1st quarter valued at approximately $33,000. Finally, National Pension Service grew its stake in Essential Utilities by 75.0% in the 1st quarter. National Pension Service now owns 950 shares of the company's stock valued at $38,000 after buying an additional 407 shares in the last quarter. Institutional investors own 74.78% of the company's stock.

About Essential Utilities

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.

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