Essential Utilities (NYSE:WTRG) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Essential Utilities has been downgraded from a "hold" to a "sell" rating by analysts at Wall Street Zen, signaling potential concerns for investors.
• Despite the downgrade, several other analysts have issued more positive ratings, including price targets between $42.00 and $47.00, with an overall average rating of "Moderate Buy."
• The company reported strong quarterly earnings, with $0.38 EPS exceeding the consensus estimate, contributing to an 18.5% year-over-year revenue growth.

Essential Utilities (NYSE:WTRG - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a note issued to investors on Friday.

Other analysts have also issued reports about the stock. Robert W. Baird boosted their price objective on shares of Essential Utilities from $46.00 to $47.00 and gave the company an "outperform" rating in a report on Monday, August 4th. UBS Group boosted their price target on shares of Essential Utilities from $42.00 to $47.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Barclays assumed coverage on shares of Essential Utilities in a research note on Thursday. They set an "overweight" rating and a $42.00 price target on the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Essential Utilities in a research note on Saturday, September 27th. Finally, Zacks Research lowered shares of Essential Utilities from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 25th. Five investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $44.00.

Essential Utilities Trading Up 2.1%

WTRG traded up $0.82 on Friday, hitting $39.39. The company had a trading volume of 1,595,373 shares, compared to its average volume of 2,030,683. The firm has a market cap of $11.05 billion, a P/E ratio of 16.90, a PEG ratio of 3.54 and a beta of 0.82. Essential Utilities has a 1 year low of $33.18 and a 1 year high of $41.65. The company's fifty day moving average price is $38.46 and its 200 day moving average price is $38.53. The company has a current ratio of 0.73, a quick ratio of 0.58 and a debt-to-equity ratio of 1.13.

Essential Utilities (NYSE:WTRG - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.29 by $0.09. The firm had revenue of $514.91 million for the quarter, compared to analyst estimates 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 was up 18.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.28 EPS. Essential Utilities has set its FY 2025 guidance at 2.070-2.110 EPS. As a group, equities analysts expect that Essential Utilities will post 1.99 earnings per share for the current year.

Hedge Funds Weigh In On Essential Utilities

A number of institutional investors and hedge funds have recently made changes to their positions in WTRG. Brighton Jones LLC acquired a new position in shares of Essential Utilities during the fourth quarter worth about $638,000. Wealth Enhancement Advisory Services LLC grew its position in shares of Essential Utilities by 35.1% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 63,630 shares of the company's stock worth $2,311,000 after buying an additional 16,543 shares in the last quarter. GAMMA Investing LLC grew its position in shares of Essential Utilities by 2,579.0% during the first quarter. GAMMA Investing LLC now owns 132,505 shares of the company's stock worth $5,238,000 after buying an additional 127,559 shares in the last quarter. Hennion & Walsh Asset Management Inc. acquired a new position in shares of Essential Utilities during the first quarter worth about $366,000. Finally, Apella Capital LLC grew its position in shares of Essential Utilities by 4.4% during the first quarter. Apella Capital LLC now owns 7,914 shares of the company's stock worth $299,000 after buying an additional 334 shares in the last quarter. 74.78% of the stock is owned by institutional investors and hedge funds.

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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