Connor Clark & Lunn Investment Management Ltd. Buys New Position in Essential Utilities Inc. (NYSE:WTRG)

Key Points

• Connor Clark & Lunn Investment Management Ltd. acquired a $2.66 million position in Essential Utilities Inc. by purchasing 67,219 shares, signaling growing institutional interest in the stock.
• Essential Utilities recently reported a profit of $0.38 per share, exceeding analyst expectations and showing an 18.5% increase in revenue year-over-year.
• The company announced an increase in its quarterly dividend to $0.3426 per share, which reflects a yield of 3.5% and indicates a strong financial position.

Connor Clark & Lunn Investment Management Ltd. purchased a new stake in Essential Utilities Inc. (NYSE:WTRG - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 67,219 shares of the company's stock, valued at approximately $2,657,000.

A number of other hedge funds have also recently bought and sold shares of the stock. Everett Harris & Co. CA grew its stake in Essential Utilities by 15.4% in the first quarter. Everett Harris & Co. CA now owns 15,000 shares of the company's stock valued at $593,000 after purchasing an additional 2,000 shares in the last quarter. Forsta AP Fonden grew its stake in Essential Utilities by 0.9% in the first quarter. Forsta AP Fonden now owns 70,300 shares of the company's stock valued at $2,779,000 after purchasing an additional 600 shares in the last quarter. Citigroup Inc. grew its stake in Essential Utilities by 177.8% in the first quarter. Citigroup Inc. now owns 223,491 shares of the company's stock valued at $8,835,000 after purchasing an additional 143,032 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in Essential Utilities by 18.7% in the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 212,871 shares of the company's stock valued at $8,415,000 after purchasing an additional 33,530 shares in the last quarter. Finally, Maryland State Retirement & Pension System grew its stake in Essential Utilities by 1.5% in the first quarter. Maryland State Retirement & Pension System now owns 226,027 shares of the company's stock valued at $8,935,000 after purchasing an additional 3,258 shares in the last quarter. 74.78% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have recently commented on WTRG shares. Wall Street Zen upgraded Essential Utilities from a "sell" rating to a "hold" rating in a research note on Saturday, July 26th. Robert W. Baird lifted their price target on Essential Utilities from $46.00 to $47.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Finally, UBS Group lifted their price objective on Essential Utilities from $42.00 to $47.00 and gave the company a "buy" rating in a report on Friday. Two analysts have rated the stock with a hold rating and five have issued a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $44.50.

Essential Utilities Price Performance

WTRG stock traded up $0.08 during midday trading on Friday, reaching $39.15. 1,472,089 shares of the stock were exchanged, compared to its average volume of 1,973,196. The company has a fifty day moving average price of $37.65 and a 200 day moving average price of $38.20. Essential Utilities Inc. has a 52 week low of $33.18 and a 52 week high of $41.65. The stock has a market capitalization of $10.98 billion, a PE ratio of 16.80, a P/E/G ratio of 3.60 and a beta of 0.78. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.73 and a quick ratio of 0.58.

Essential Utilities (NYSE:WTRG - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.38 EPS for the quarter, beating analysts' consensus estimates of $0.29 by $0.09. Essential Utilities had a return on equity of 10.10% and a net margin of 27.62%. The firm had revenue of $514.91 million for the quarter, compared to analyst estimates of $462.70 million. During the same quarter in the previous year, the company posted $0.28 EPS. The business's revenue was up 18.5% on a year-over-year basis. As a group, analysts expect that Essential Utilities Inc. will post 1.99 EPS for the current fiscal year.

Essential Utilities Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Tuesday, August 12th will be given a $0.3426 dividend. This is a boost from Essential Utilities's previous quarterly dividend of $0.33. The ex-dividend date is Tuesday, August 12th. This represents a $1.37 dividend on an annualized basis and a dividend yield of 3.5%. Essential Utilities's dividend payout ratio 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.