Citigroup Inc. Buys 143,032 Shares of Essential Utilities Inc. $WTRG

Key Points

• Citigroup Inc. increased its stake in Essential Utilities by 177.8%, purchasing an additional 143,032 shares, bringing its total ownership to approximately $8.8 million.
• The company reported a net margin of 27.62% and 18.5% revenue growth year-over-year, exceeding analysts' earnings expectations with $0.38 EPS against a consensus of $0.29.
• Essential Utilities recently declared a quarterly dividend of $0.3426 per share, increasing from the previous $0.33, translating to an annual yield of 3.5%.

Citigroup Inc. raised its stake in shares of Essential Utilities Inc. (NYSE:WTRG - Free Report) by 177.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 223,491 shares of the company's stock after purchasing an additional 143,032 shares during the quarter. Citigroup Inc. owned 0.08% of Essential Utilities worth $8,835,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently made changes to their positions in the business. Ensign Peak Advisors Inc increased its stake in shares of Essential Utilities by 74.6% in the fourth quarter. Ensign Peak Advisors Inc now owns 1,593,053 shares of the company's stock worth $57,860,000 after buying an additional 680,760 shares during the period. Northern Trust Corp increased its stake in shares of Essential Utilities by 22.0% in the fourth quarter. Northern Trust Corp now owns 3,331,090 shares of the company's stock worth $120,985,000 after buying an additional 601,026 shares during the period. Raiffeisen Bank International AG purchased a new position in shares of Essential Utilities in the fourth quarter worth $20,436,000. Boston Trust Walden Corp increased its stake in shares of Essential Utilities by 16.5% in the first quarter. Boston Trust Walden Corp now owns 2,476,811 shares of the company's stock worth $97,908,000 after buying an additional 349,904 shares during the period. Finally, SG Americas Securities LLC purchased a new position in shares of Essential Utilities in the first quarter worth $10,030,000. 74.78% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on WTRG. Robert W. Baird lifted their target price on shares of Essential Utilities from $46.00 to $47.00 and gave the stock an "outperform" rating in a research note on Monday, August 4th. UBS Group lifted their target price on shares of Essential Utilities from $42.00 to $47.00 and gave the stock a "buy" rating in a research note on Friday. Finally, Wall Street Zen raised shares of Essential Utilities from a "sell" rating to a "hold" rating in a research report on Saturday, July 26th. Five equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $44.50.

Essential Utilities Stock Up 1.4%

Shares of NYSE:WTRG traded up $0.5250 during midday trading on Tuesday, reaching $39.1850. The company's stock had a trading volume of 2,024,503 shares, compared to its average volume of 1,721,343. The firm has a 50 day moving average of $37.67 and a 200-day moving average of $38.24. The firm has a market capitalization of $10.99 billion, a P/E ratio of 16.82, a PEG ratio of 3.60 and a beta of 0.78. The company has a quick ratio of 0.58, a current ratio of 0.73 and a debt-to-equity ratio of 1.13. Essential Utilities Inc. has a 12-month low of $33.18 and a 12-month high of $41.65.

Essential Utilities (NYSE:WTRG - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.38 earnings per share for the quarter, topping analysts' consensus estimates of $0.29 by $0.09. The firm had revenue of $514.91 million for the quarter, compared to the consensus estimate of $462.70 million. Essential Utilities had a net margin of 27.62% and a return on equity of 10.10%. The company's revenue was up 18.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.28 EPS. Essential Utilities has set its FY 2025 guidance at 2.070-2.110 EPS. On average, research analysts anticipate that Essential Utilities Inc. will post 1.99 earnings per share for the current year.

Essential Utilities Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 2nd. Investors of record on Tuesday, August 12th will be paid a $0.3426 dividend. This represents a $1.37 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Tuesday, August 12th. This is a positive change from Essential Utilities's previous quarterly dividend of $0.33. Essential Utilities's dividend payout ratio (DPR) is presently 58.80%.

About Essential Utilities

Essential Utilities, Inc, through its subsidiaries, operates regulated utilities that provide water, wastewater, or natural gas services in the United States. The company operates through Regulated Water and Regulated Natural Gas segments. It offers water services through operating and maintenance contract with municipal authorities and other parties.