557,154 Shares in American Water Works Company, Inc. $AWK Acquired by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC acquired 557,154 shares of American Water Works, valued at approximately $73.5 million, giving it a 0.28% stake. Institutional investors collectively own 86.58% of AWK.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $138.78; UBS raised its target to $150 and assigned a “Buy” rating.
• American Water Works exceeded quarterly expectations, reporting $1.61 in EPS and $1.35 billion in revenue, while maintaining a quarterly dividend of $0.895 per share, equivalent to a 2.6% annualized yield.

Hsbc Holdings PLC purchased a new position in American Water Works Company, Inc. (NYSE:AWK - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 557,154 shares of the utilities provider's stock, valued at approximately $73,527,000. Hsbc Holdings PLC owned about 0.28% of American Water Works as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently modified their holdings of the stock. Reflection Asset Management acquired a new stake in shares of American Water Works during the fourth quarter worth $25,000. Transamerica Financial Advisors LLC boosted its position in shares of American Water Works by 82.6% in the 4th quarter. Transamerica Financial Advisors LLC now owns 199 shares of the utilities provider's stock valued at $26,000 after purchasing an additional 90 shares during the period. Ascentis Independent Advisors purchased a new position in American Water Works in the 1st quarter worth about $27,000. Nemes Rush Group LLC purchased a new position in American Water Works in the 4th quarter worth about $27,000. Finally, Harborfront Financial Group LLC acquired a new stake in American Water Works during the 2nd quarter worth about $29,000. Institutional investors own 86.58% of the company's stock.

Analysts Set New Price Targets

AWK has been the subject of a number of analyst reports. Bank of America reaffirmed a "neutral" rating on shares of American Water Works in a research note on Thursday, July 16th. Weiss Ratings reissued a "hold (c)" rating on shares of American Water Works in a research report on Wednesday, June 24th. UBS Group boosted their price target on shares of American Water Works from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 2nd. Truist Financial set a $139.00 price target on shares of American Water Works in a research report on Tuesday, August 4th. Finally, Wall Street Zen raised shares of American Water Works from a "strong sell" rating to a "sell" rating in a research note on Monday, August 3rd. One investment analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, American Water Works presently has a consensus rating of "Hold" and an average target price of $138.78.

American Water Works Stock Performance

Shares of NYSE AWK opened at $137.54 on Thursday. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.52 and a quick ratio of 0.49. American Water Works Company, Inc. has a one year low of $120.57 and a one year high of $145.64. The business's 50-day moving average price is $133.64 and its two-hundred day moving average price is $131.81. The company has a market capitalization of $27.33 billion, a P/E ratio of 23.84, a price-to-earnings-growth ratio of 2.80 and a beta of 0.60.

American Water Works (NYSE:AWK - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The utilities provider reported $1.61 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.53 by $0.08. The business had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.33 billion. American Water Works had a return on equity of 10.20% and a net margin of 21.35%.The firm's revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.48 EPS. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. Analysts anticipate that American Water Works Company, Inc. will post 6.09 earnings per share for the current fiscal year.

American Water Works Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 11th will be paid a $0.895 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $3.58 dividend on an annualized basis and a yield of 2.6%. American Water Works's payout ratio is 62.05%.

American Water Works Profile

American Water Works Company, Inc NYSE: AWK is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company's operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.

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