American Water Works Company, Inc. $AWK Shares Bought by Hsbc Holdings PLC

Key Points

• HSBC Holdings PLC increased its stake in American Water Works by 13.3% in the fourth quarter, buying an additional 56,980 shares and bringing its total holding to 484,339 shares worth about $63.2 million.
• American Water Works reported Q1 earnings of $1.01 per share, missing analyst expectations, though revenue of $1.21 billion topped estimates and rose 5.7% year over year.
• The company raised its quarterly dividend to $0.895 per share, or $3.58 annually, which implies a 2.9% yield and reflects a higher payout than the prior quarter.

Hsbc Holdings PLC lifted its stake in shares of American Water Works Company, Inc. (NYSE:AWK - Free Report) by 13.3% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 484,339 shares of the utilities provider's stock after purchasing an additional 56,980 shares during the period. Hsbc Holdings PLC owned 0.25% of American Water Works worth $63,223,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in the stock. Nordea Investment Management AB grew its holdings in American Water Works by 2.2% in the 4th quarter. Nordea Investment Management AB now owns 2,219,816 shares of the utilities provider's stock valued at $290,729,000 after buying an additional 47,977 shares in the last quarter. Aberdeen Group plc raised its holdings in shares of American Water Works by 10.7% during the 4th quarter. Aberdeen Group plc now owns 489,371 shares of the utilities provider's stock worth $63,863,000 after acquiring an additional 47,352 shares during the period. TSP Capital Management Group LLC acquired a new position in shares of American Water Works during the 4th quarter valued at about $1,559,000. Country Trust Bank boosted its position in shares of American Water Works by 6.8% during the 4th quarter. Country Trust Bank now owns 178,599 shares of the utilities provider's stock valued at $23,307,000 after acquiring an additional 11,401 shares during the last quarter. Finally, Cbre Investment Management Listed Real Assets LLC grew its holdings in shares of American Water Works by 82.7% in the fourth quarter. Cbre Investment Management Listed Real Assets LLC now owns 21,430 shares of the utilities provider's stock valued at $2,797,000 after purchasing an additional 9,698 shares during the period. 86.58% of the stock is currently owned by hedge funds and other institutional investors.

American Water Works Stock Up 0.0%

Shares of NYSE AWK opened at $125.08 on Tuesday. The firm has a market cap of $24.42 billion, a price-to-earnings ratio of 22.18, a PEG ratio of 2.71 and a beta of 0.62. The company has a quick ratio of 0.34, a current ratio of 0.37 and a debt-to-equity ratio of 1.16. American Water Works Company, Inc. has a 52-week low of $120.57 and a 52-week high of $147.87. The business's 50 day moving average is $127.14 and its two-hundred day moving average is $130.46.

American Water Works (NYSE:AWK - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.01 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 firm had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter last year, the company earned $1.05 earnings per share. The firm's revenue for the quarter was up 5.7% on a year-over-year basis. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. Research analysts predict that American Water Works Company, Inc. will post 6.09 EPS for the current year.

American Water Works Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 12th were paid a dividend of $0.895 per share. This represents a $3.58 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend was Tuesday, May 12th. This is a positive change from American Water Works's previous quarterly dividend of $0.83. American Water Works's dividend payout ratio is currently 63.48%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on AWK. UBS Group upgraded shares of American Water Works from a "neutral" rating to a "buy" rating and raised their price objective for the stock from $137.00 to $140.00 in a research report on Friday, May 29th. Wells Fargo & Company set a $131.00 target price on shares of American Water Works in a report on Tuesday, April 21st. Bank of America dropped their price target on shares of American Water Works from $147.00 to $134.00 and set a "neutral" rating for the company in a research note on Thursday, May 21st. Truist Financial reduced their price target on shares of American Water Works from $137.00 to $130.00 and set a "hold" rating on the stock in a research report on Friday, May 29th. Finally, Wall Street Zen raised shares of American Water Works from a "strong sell" rating to a "sell" rating in a research report on Sunday, April 26th. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, American Water Works presently has an average rating of "Hold" and a consensus target price of $138.11.

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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