Bank of America Corp DE Acquires Shares of 2,793,983 American Water Works Company, Inc. $AWK

Key Points

• Bank of America acquired 2.79 million shares of American Water Works during the second quarter, worth approximately $367.6 million and representing a 1.41% stake.
• Institutional investors own 86.58% of AWK, with several firms—including HSBC, Jupiter Topco and EFG International—also initiating positions during the quarter.
• Analysts maintain a generally neutral outlook, with an average “Hold” rating and $140.11 price target. American Water Works exceeded quarterly earnings and revenue expectations and pays an annualized $3.58 dividend, yielding about 2.6%.

Bank of America Corp DE bought a new position in American Water Works Company, Inc. (NYSE:AWK - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 2,793,983 shares of the utilities provider's stock, valued at approximately $367,632,000. Bank of America Corp DE owned 1.41% of American Water Works at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in AWK. Odyssean LLC grew its stake in shares of American Water Works by 111.6% during the 2nd quarter. Odyssean LLC now owns 23,536 shares of the utilities provider's stock valued at $3,097,000 after purchasing an additional 12,415 shares during the period. Man Group plc bought a new position in American Water Works in the 2nd quarter worth $756,000. Jupiter Topco LLC purchased a new stake in shares of American Water Works during the second quarter worth about $33,941,000. Hsbc Holdings PLC purchased a new stake in American Water Works during the 2nd quarter valued at approximately $73,527,000. Finally, EFG International AG bought a new stake in American Water Works in the 2nd quarter valued at $3,608,000. Institutional investors own 86.58% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on AWK. Weiss Ratings restated a "hold (c)" rating on shares of American Water Works in a research report on Wednesday, June 24th. Wall Street Zen upgraded American Water Works from a "strong sell" rating to a "sell" rating in a report on Monday, August 3rd. Bank of America restated a "neutral" rating on shares of American Water Works in a research note on Thursday, July 16th. Barclays raised their price target on 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, Mizuho lifted their price objective on shares of American Water Works from $130.00 to $140.00 and gave the company a "neutral" rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average target price of $140.11.

American Water Works Stock Performance

AWK opened at $137.95 on Wednesday. The firm has a fifty day moving average price of $135.96 and a 200 day moving average price of $132.72. 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 1 year low of $120.57 and a 1 year high of $145.64. The stock has a market cap of $27.42 billion, a P/E ratio of 23.91, a P/E/G ratio of 2.83 and a beta of 0.59.

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

American Water Works Dividend Announcement

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

American Water Works Company Profile

American Water Works Company, Inc is a water and wastewater utility company that provides essential services to residential, commercial, industrial and public-sector customers. Through its regulated operations, the company treats and distributes drinking water, collects and treats wastewater, and manages related infrastructure such as pipelines, treatment plants, storage facilities and pumping stations.

The company also provides water and wastewater services to military installations and operates businesses serving municipalities and other public-sector customers.

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