Bank of America Corp DE Makes New $34.48 Million Investment in Essential Utilities Inc. $WTRG

Key Points

• Bank of America initiated a $34.48 million position in Essential Utilities during the second quarter, purchasing 899,973 shares and owning approximately 0.32% of the company. Institutional investors collectively hold 74.78% of the stock.
• Essential Utilities reported quarterly EPS of $0.38, beating estimates by $0.01, while revenue rose 3.1% year over year to $530.85 million, slightly below expectations.
• The company increased its quarterly dividend to $0.3606 per share, representing a $1.44 annualized payout and a 3.6% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $43.75 versus the stock’s $40.44 price.

Bank of America Corp DE bought a new position in Essential Utilities Inc. (NYSE:WTRG - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm bought 899,973 shares of the company's stock, valued at approximately $34,478,000. Bank of America Corp DE owned 0.32% of Essential Utilities at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Essential Utilities in the 2nd quarter worth about $1,280,829,000. Geode Capital Management LLC lifted its stake in shares of Essential Utilities by 2.4% in the 4th quarter. Geode Capital Management LLC now owns 5,233,715 shares of the company's stock valued at $200,197,000 after purchasing an additional 120,947 shares in the last quarter. Legal & General Group Plc grew its holdings in shares of Essential Utilities by 19.0% during the 4th quarter. Legal & General Group Plc now owns 4,149,063 shares of the company's stock worth $159,158,000 after purchasing an additional 662,334 shares during the period. Norges Bank purchased a new stake in shares of Essential Utilities during the 4th quarter worth about $154,176,000. Finally, Dimensional Fund Advisors LP increased its position in Essential Utilities by 3.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,881,490 shares of the company's stock worth $116,049,000 after purchasing an additional 106,252 shares in the last quarter. Institutional investors and hedge funds own 74.78% of the company's stock.

Essential Utilities Trading Down 0.1%

NYSE WTRG opened at $40.44 on Wednesday. The company has a market capitalization of $11.47 billion, a price-to-earnings ratio of 20.63, a price-to-earnings-growth ratio of 3.05 and a beta of 0.64. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.78 and a quick ratio of 0.62. Essential Utilities Inc. has a 12 month low of $36.10 and a 12 month high of $42.51. The company's fifty day moving average price is $40.49 and its two-hundred day moving average price is $39.34.

Essential Utilities (NYSE:WTRG - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.37 by $0.01. The company had revenue of $530.85 million for the quarter, compared to the consensus estimate of $538.90 million. Essential Utilities had a net margin of 21.60% and a return on equity of 8.23%. The company's revenue for the quarter was up 3.1% on a year-over-year basis. During the same period last year, the firm posted $0.38 EPS. As a group, research analysts predict that Essential Utilities Inc. will post 2.21 earnings per share for the current fiscal year.

Essential Utilities Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th were given a dividend of $0.3606 per share. This is a boost from Essential Utilities's previous quarterly dividend of $0.34. The ex-dividend date was Tuesday, August 11th. This represents a $1.44 annualized dividend and a dividend yield of 3.6%. Essential Utilities's payout ratio is 73.47%.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Weiss Ratings raised shares of Essential Utilities from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, September 2nd. Wall Street Zen raised shares of Essential Utilities to a "sell" rating in a research report on Saturday, July 4th. Barclays raised their target price on shares of Essential Utilities from $38.00 to $40.00 and gave the company an "underweight" rating in a research note on Wednesday, July 15th. Finally, UBS Group lifted their target price on shares of Essential Utilities from $48.00 to $49.00 and gave the company a "buy" rating in a report on Thursday, September 10th. Two investment analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Essential Utilities has an average rating of "Moderate Buy" and a consensus price target of $43.75.

Insider Activity at Essential Utilities

In related news, insider Colleen Arnold sold 2,855 shares of Essential Utilities stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $39.55, for a total transaction of $112,915.25. Following the transaction, the insider directly owned 17,347 shares of the company's stock, valued at $686,073.85. The trade was a 14.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.36% of the company's stock.

Essential Utilities Company Profile

Essential Utilities, Inc NYSE: WTRG is a regulated utility company that provides essential water, wastewater and natural gas services to residential, commercial, industrial and municipal customers. Its water operations include the treatment and distribution of drinking water, while its wastewater operations collect and treat sewage. The company's natural gas business distributes gas through regulated utility networks.

The company operates primarily through its Aqua and Peoples businesses.

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