Arwa LLC Buys New Shares in American Water Works Company, Inc. $AWK

Key Points

• Arwa LLC opened a new position in American Water Works in the fourth quarter, buying 9,166 shares worth about $1.196 million.
• Institutional interest remains high, with several other hedge funds adding to or initiating positions in AWK; overall, 86.58% of the stock is owned by institutional investors and hedge funds.
• American Water Works recently raised its quarterly dividend to $0.895 per share, while analysts currently have a consensus Hold rating and average price target of $138.11.

Arwa LLC acquired a new position in American Water Works Company, Inc. (NYSE:AWK - Free Report) in the fourth quarter, according to the company in its most recent filing with the SEC. The firm acquired 9,166 shares of the utilities provider's stock, valued at approximately $1,196,000.

Several other hedge funds have also recently bought and sold shares of AWK. Salomon & Ludwin LLC grew its holdings in shares of American Water Works by 71.7% during the fourth quarter. Salomon & Ludwin LLC now owns 194 shares of the utilities provider's stock worth $25,000 after purchasing an additional 81 shares during the last quarter. Transamerica Financial Advisors LLC grew its holdings in American Water Works by 82.6% during the 4th quarter. Transamerica Financial Advisors LLC now owns 199 shares of the utilities provider's stock worth $26,000 after acquiring an additional 90 shares during the period. Nemes Rush Group LLC bought a new stake in shares of American Water Works in the 4th quarter valued at about $27,000. MV Capital Management Inc. bought a new position in American Water Works in the fourth quarter valued at approximately $29,000. Finally, DV Equities LLC acquired a new position in shares of American Water Works in the fourth quarter valued at approximately $35,000. 86.58% of the stock is currently owned by institutional investors and hedge funds.

American Water Works Price Performance

Shares of AWK opened at $125.25 on Friday. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.34 and a current ratio of 0.37. The firm has a market cap of $24.46 billion, a PE ratio of 22.21, a price-to-earnings-growth ratio of 2.71 and a beta of 0.62. The business's 50 day moving average price is $127.42 and its two-hundred day moving average price is $130.51. American Water Works Company, Inc. has a 52-week low of $120.57 and a 52-week high of $147.87.

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

American Water Works Increases Dividend

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

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of American Water Works in a research note on Friday, March 27th. Wells Fargo & Company set a $131.00 target price on shares of American Water Works in a research note on Tuesday, April 21st. Barclays upped their price target on shares of American Water Works from $122.00 to $124.00 and gave the company an "underweight" rating in a research note on Monday, April 20th. Bank of America lowered their price target on shares of American Water Works from $147.00 to $134.00 and set a "neutral" rating on the stock in a report on Thursday, May 21st. Finally, Truist Financial cut their price objective on shares of American Water Works from $137.00 to $130.00 and set a "hold" rating for the company in a research report on Friday, May 29th. Two equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company 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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