American Water Works Company, Inc. $AWK Shares Acquired by Nomura Asset Management Co. Ltd.

Key Points

• Nomura Asset Management increased its stake in American Water Works by 21.6% in the fourth quarter, buying 30,812 additional shares and bringing its total holding to 173,352 shares worth about $22.6 million.
• American Water Works completed major acquisitions, including a $315 million purchase of Nexus Water Group systems across eight states, which expands its regulated footprint and could support long-term rate-base growth.
• The company recently raised its quarterly dividend to $0.895 per share, while its latest earnings missed EPS estimates even as revenue topped expectations; the stock was also trading near its 52-week low and down about 1.8% on the day.

Nomura Asset Management Co. Ltd. lifted its holdings in shares of American Water Works Company, Inc. (NYSE:AWK - Free Report) by 21.6% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 173,352 shares of the utilities provider's stock after purchasing an additional 30,812 shares during the quarter. Nomura Asset Management Co. Ltd. owned about 0.09% of American Water Works worth $22,622,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in AWK. Essex Financial Services Inc. increased its position in shares of American Water Works by 7.7% in the fourth quarter. Essex Financial Services Inc. now owns 4,860 shares of the utilities provider's stock worth $634,000 after acquiring an additional 346 shares in the last quarter. MUFG Securities EMEA plc increased its position in shares of American Water Works by 114.4% in the fourth quarter. MUFG Securities EMEA plc now owns 8,007 shares of the utilities provider's stock worth $1,045,000 after acquiring an additional 4,273 shares in the last quarter. Norges Bank acquired a new stake in shares of American Water Works in the fourth quarter worth $337,004,000. Eurizon Capital SGR S.p.A. acquired a new stake in shares of American Water Works in the fourth quarter worth $69,855,000. Finally, National Pension Service increased its position in shares of American Water Works by 12.7% in the fourth quarter. National Pension Service now owns 276,909 shares of the utilities provider's stock worth $36,137,000 after acquiring an additional 31,195 shares in the last quarter. Institutional investors and hedge funds own 86.58% of the company's stock.

Analyst Ratings Changes

Several research firms have recently issued reports on AWK. Barclays increased their price objective on shares of American Water Works from $122.00 to $124.00 and gave the stock an "underweight" rating in a research report on Monday, April 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of American Water Works in a report on Friday, March 27th. Wall Street Zen raised shares of American Water Works from a "strong sell" rating to a "sell" rating in a report on Sunday, April 26th. UBS Group raised shares of American Water Works from a "neutral" rating to a "buy" rating and raised their price target for the company from $137.00 to $140.00 in a report on Friday. Finally, Truist Financial lowered their price target on shares of American Water Works from $137.00 to $130.00 and set a "hold" rating for the company in a report on Friday. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $138.11.

Key Stories Impacting American Water Works

Here are the key news stories impacting American Water Works this week:

• Positive Sentiment: American Water completed a $315 million acquisition of Nexus Water Group systems in eight states, expanding its regulated footprint and adding long-term rate-base growth potential. American Water Completes Purchase of Nexus Water Group Systems in Eight States
• Positive Sentiment: Several subsidiary acquisitions were completed on June 1, including systems in New Jersey, Virginia, Pennsylvania, Kentucky, Tennessee, Indiana, and Illinois, which should support customer and regulated asset growth. New Jersey American Water Completes Purchase of Montague Sewer & Water Company's Utility Systems
• Neutral Sentiment: MarketWatch noted that AWK underperformed peers during Monday trading, suggesting investors are not fully rewarding the acquisition news yet. American Water Works Co. stock underperforms Monday when compared to competitors
• Negative Sentiment: The stock’s weakness may also reflect investor caution around the size of the acquisition and its near-term capital spending needs, even though the assets are regulated.

American Water Works Trading Down 1.8%

American Water Works stock opened at $120.99 on Tuesday. The firm's 50-day moving average is $130.64 and its 200-day moving average is $131.04. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.34 and a current ratio of 0.37. American Water Works Company, Inc. has a 1 year low of $120.61 and a 1 year high of $147.87. The company has a market cap of $23.63 billion, a P/E ratio of 21.45, a PEG ratio of 2.67 and a beta of 0.62.

American Water Works (NYSE:AWK - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.01 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.10 by ($0.09). American Water Works had a return on equity of 10.20% and a net margin of 21.17%.The business had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter in the previous year, the business posted $1.05 earnings per share. The company's quarterly revenue was up 5.7% compared to the same quarter last year. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. On average, equities analysts expect that American Water Works Company, Inc. will post 6.09 earnings per share for the current year.

American Water Works Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Investors of record on Tuesday, May 12th will be given a $0.895 dividend. The ex-dividend date is Tuesday, May 12th. This represents a $3.58 annualized dividend and a yield of 3.0%. This is a boost from American Water Works's previous quarterly dividend of $0.83. American Water Works's payout ratio is 63.48%.

About American Water Works

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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