Essential Utilities (NYSE:WTRG) Downgraded to Hold Rating by Zacks Research

Key Points

• Essential Utilities has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, amid mixed analyst opinions on the stock.
• Despite the downgrade, Robert W. Baird and UBS Group have increased their target prices to $47.00, maintaining positive ratings for the stock.
• Essential Utilities reported quarterly earnings of $0.38 EPS, exceeding the estimated $0.29, with revenues increasing by 18.5% year-over-year to $514.91 million.

Essential Utilities (NYSE:WTRG - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other analysts have also issued reports on WTRG. Robert W. Baird upped their target price on 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 boosted their price objective on shares of Essential Utilities from $42.00 to $47.00 and gave the stock a "buy" rating in a report on Friday, August 15th. Finally, Wall Street Zen lowered shares of Essential Utilities from a "hold" rating to a "sell" rating in a report on Saturday. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $44.50.

Essential Utilities Price Performance

WTRG opened at $39.10 on Monday. The firm has a 50-day moving average price of $37.83 and a 200-day moving average price of $38.38. Essential Utilities has a twelve month low of $33.18 and a twelve month high of $41.65. 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 capitalization of $10.96 billion, a price-to-earnings ratio of 16.78, a PEG ratio of 3.59 and a beta of 0.78.

Essential Utilities (NYSE:WTRG - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.38 EPS for the quarter, beating the consensus estimate 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 net margin of 27.62% and a return on equity of 10.10%. Essential Utilities's revenue for the quarter was up 18.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.28 earnings per share. Essential Utilities has set its FY 2025 guidance at 2.070-2.110 EPS. Equities analysts expect that Essential Utilities will post 1.99 EPS for the current year.

Institutional Trading of Essential Utilities

Institutional investors have recently bought and sold shares of the stock. Thrivent Financial for Lutherans lifted its holdings in shares of Essential Utilities by 10.4% in the 2nd quarter. Thrivent Financial for Lutherans now owns 139,484 shares of the company's stock worth $5,181,000 after buying an additional 13,104 shares during the period. Marex Group plc purchased a new position in Essential Utilities during the 2nd quarter worth $258,000. Anchor Investment Management LLC increased its holdings in shares of Essential Utilities by 5.0% during the second quarter. Anchor Investment Management LLC now owns 6,848 shares of the company's stock valued at $254,000 after acquiring an additional 327 shares in the last quarter. Nomura Holdings Inc. increased its stake in Essential Utilities by 5.6% during the 2nd quarter. Nomura Holdings Inc. now owns 12,693 shares of the company's stock valued at $471,000 after purchasing an additional 676 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co raised its stake in Essential Utilities by 3.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 398,459 shares of the company's stock worth $14,811,000 after acquiring an additional 13,596 shares during the last quarter. 74.78% of the stock is currently owned by institutional investors.

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.

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