Essential Utilities (NYSE:WTRG) Issues Earnings Results

Key Points

• Essential Utilities beat earnings expectations, reporting quarterly EPS of $0.38 versus the $0.37 consensus estimate. The company posted a 21.82% net margin and 8.34% return on equity.
• Shares rose 2.2% to $39.63 following the results. The stock has a market capitalization of $11.24 billion and trades at a P/E ratio of 20.12.
• The company increased its quarterly dividend to $0.3606 per share, representing an annualized payout of $1.44 and a 3.6% yield. Analysts maintain a consensus “Moderate Buy” rating with a $43 price target.

Essential Utilities (NYSE:WTRG - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $0.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.01, Zacks reports. Essential Utilities had a net margin of 21.82% and a return on equity of 8.34%.

Essential Utilities Trading Up 2.2%

Shares of WTRG stock traded up $0.85 on Tuesday, reaching $39.63. 3,087,538 shares of the stock were exchanged, compared to its average volume of 2,243,507. The stock has a market cap of $11.24 billion, a P/E ratio of 20.12 and a beta of 0.64. The company has a quick ratio of 0.84, a current ratio of 0.95 and a debt-to-equity ratio of 1.21. The firm has a 50 day moving average of $38.22 and a two-hundred day moving average of $38.88. Essential Utilities has a 1-year low of $36.10 and a 1-year high of $42.37.

Essential Utilities Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th will be issued a dividend of $0.3606 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Tuesday, August 11th. This is a positive change from Essential Utilities's previous quarterly dividend of $0.34. Essential Utilities's payout ratio is currently 69.54%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on WTRG shares. Weiss Ratings reissued a "hold (c+)" rating on shares of Essential Utilities in a research note on Friday, May 22nd. UBS Group lifted their target price on shares of Essential Utilities from $43.00 to $46.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Barclays boosted their price target on Essential Utilities from $38.00 to $40.00 and gave the company an "underweight" rating in a report on Wednesday, July 15th. Finally, Wall Street Zen raised Essential Utilities to a "sell" rating in a research note on Saturday, July 4th. Two analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $43.00.

Institutional Investors Weigh In On Essential Utilities

A number of institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd purchased a new position in shares of Essential Utilities in the 4th quarter worth about $32,000. Los Angeles Capital Management LLC purchased a new stake in shares of Essential Utilities during the 4th quarter worth about $51,000. EverSource Wealth Advisors LLC grew its holdings in shares of Essential Utilities by 168.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,747 shares of the company's stock worth $102,000 after purchasing an additional 1,723 shares during the period. Parallel Advisors LLC increased its position in Essential Utilities by 47.7% during the 3rd quarter. Parallel Advisors LLC now owns 3,710 shares of the company's stock worth $148,000 after purchasing an additional 1,199 shares in the last quarter. Finally, Siemens Fonds Invest GmbH increased its position in Essential Utilities by 13.6% during the 3rd quarter. Siemens Fonds Invest GmbH now owns 3,892 shares of the company's stock worth $155,000 after purchasing an additional 466 shares in the last quarter. Hedge funds and other institutional investors own 74.78% of the company's stock.

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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