Aristotle Capital Management LLC Sells 196,093 Shares of American Water Works Company, Inc. $AWK

Key Points

• Aristotle Capital Management trimmed its stake in American Water Works by 3.3% in the first quarter, selling 196,093 shares and still holding 5.81 million shares valued at about $791.2 million.
• American Water Works reported mixed quarterly results, with EPS of $1.01 coming in below estimates while revenue of $1.21 billion topped expectations and rose 5.7% year over year.
• The company raised its quarterly dividend to $0.895 per share, implying an annualized dividend of $3.58 and a yield of 2.7%.

Aristotle Capital Management LLC lessened its holdings in shares of American Water Works Company, Inc. (NYSE:AWK - Free Report) by 3.3% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 5,813,455 shares of the utilities provider's stock after selling 196,093 shares during the period. American Water Works makes up approximately 1.7% of Aristotle Capital Management LLC's holdings, making the stock its 28th largest position. Aristotle Capital Management LLC owned 2.98% of American Water Works worth $791,164,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in AWK. Cannell & Spears LLC bought a new position in American Water Works during the 1st quarter worth approximately $204,000. Healthcare of Ontario Pension Plan Trust Fund lifted its position in American Water Works by 59.0% during the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 12,264 shares of the utilities provider's stock worth $1,669,000 after buying an additional 4,551 shares in the last quarter. Caxton Associates LLP boosted its holdings in shares of American Water Works by 150.5% in the 1st quarter. Caxton Associates LLP now owns 13,886 shares of the utilities provider's stock valued at $1,890,000 after buying an additional 8,343 shares during the last quarter. Gibbs Wealth Management acquired a new position in American Water Works during the first quarter worth approximately $564,000. Finally, Sei Investments Co. lifted its stake in shares of American Water Works by 3.8% during the 1st quarter. Sei Investments Co. now owns 644,238 shares of the utilities provider's stock worth $87,672,000 after buying an additional 23,796 shares during the last quarter. Institutional investors own 86.58% of the company's stock.

American Water Works Trading Up 0.3%

Shares of NYSE AWK opened at $134.80 on Friday. American Water Works Company, Inc. has a 1-year low of $120.57 and a 1-year high of $147.87. The business has a fifty day moving average price of $128.31 and a 200 day moving average price of $130.75. The stock has a market capitalization of $26.32 billion, a P/E ratio of 23.90, a price-to-earnings-growth ratio of 2.72 and a beta of 0.61. The company has a debt-to-equity ratio of 1.16, a current ratio of 0.37 and a quick ratio of 0.34.

American Water Works (NYSE:AWK - Get Free Report) last announced its 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 net margin of 21.17% and a return on equity of 10.20%. The business had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.17 billion. During the same quarter last year, the business earned $1.05 EPS. The company's quarterly revenue 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. Equities research analysts expect that American Water Works Company, Inc. will post 6.09 EPS for the current fiscal year.

American Water Works Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 12th were issued a $0.895 dividend. The ex-dividend date was Tuesday, May 12th. This represents a $3.58 dividend on an annualized basis and a dividend yield of 2.7%. This is an increase from American Water Works's previous quarterly dividend of $0.83. American Water Works's payout ratio is currently 63.48%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Weiss Ratings restated a "hold (c)" rating on shares of American Water Works in a research report on Wednesday, June 24th. Truist Financial dropped their price target on American Water Works from $137.00 to $130.00 and set a "hold" rating on the stock in a report on Friday, May 29th. Bank of America reissued a "neutral" rating on shares of American Water Works in a report on Thursday, July 16th. Barclays upped their price target on shares of American Water Works from $124.00 to $130.00 and gave the company an "underweight" rating in a research note on Wednesday, July 15th. Finally, UBS Group increased their target price on shares of American Water Works from $140.00 to $150.00 and gave the stock a "buy" rating in a research note on Thursday, July 2nd. Two research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $140.60.

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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