Costello Asset Management INC Invests $1.01 Million in American Water Works Company, Inc. (NYSE:AWK)

Key Points

• Costello Asset Management INC has acquired 6,861 shares of American Water Works Company, valued at approximately $1,012,000, indicating a growing interest in the utilities sector.
• Institutional investors now own 86.58% of American Water Works, with several modifying their holdings in the first quarter, reflecting a strong institutional backing.
• American Water Works recently reported earnings per share of $1.48, missing the consensus estimate, despite a year-over-year revenue increase of 11.1% to $1.28 billion.

Costello Asset Management INC bought a new stake in American Water Works Company, Inc. (NYSE:AWK - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 6,861 shares of the utilities provider's stock, valued at approximately $1,012,000.

Several other institutional investors have also recently made changes to their positions in the stock. Cloud Capital Management LLC purchased a new stake in shares of American Water Works during the first quarter valued at $29,000. Capital A Wealth Management LLC purchased a new stake in shares of American Water Works in the fourth quarter worth about $33,000. Wayfinding Financial LLC purchased a new stake in shares of American Water Works during the 1st quarter worth about $48,000. Millstone Evans Group LLC purchased a new position in American Water Works during the first quarter worth approximately $55,000. Finally, Banque Transatlantique SA acquired a new position in shares of American Water Works during the 4th quarter worth approximately $46,000. Institutional investors own 86.58% of the company's stock.

Insider Activity

In other American Water Works news, CAO Melissa K. Wikle sold 2,825 shares of American Water Works stock in a transaction on Friday, May 30th. The shares were sold at an average price of $143.28, for a total transaction of $404,766.00. Following the completion of the sale, the chief accounting officer owned 7,572 shares of the company's stock, valued at $1,084,916.16. This trade represents a 27.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.11% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the stock. Evercore ISI upped their price objective on shares of American Water Works from $139.00 to $148.00 and gave the company an "in-line" rating in a research note on Friday, May 2nd. Wall Street Zen lowered shares of American Water Works from a "hold" rating to a "sell" rating in a report on Wednesday, May 14th. UBS Group reaffirmed a "neutral" rating and issued a $156.00 target price (up from $154.00) on shares of American Water Works in a research report on Friday, July 11th. Mizuho raised their price objective on shares of American Water Works from $148.00 to $149.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Finally, Wells Fargo & Company cut their target price on shares of American Water Works from $147.00 to $141.00 and set an "equal weight" rating on the stock in a research note on Friday, August 1st. Four research analysts have rated the stock with a sell rating, six have assigned a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $142.00.

American Water Works Stock Performance

NYSE AWK traded up $2.44 during trading hours on Thursday, hitting $144.35. The company had a trading volume of 1,771,117 shares, compared to its average volume of 1,534,034. American Water Works Company, Inc. has a fifty-two week low of $118.74 and a fifty-two week high of $155.50. The firm has a market cap of $28.16 billion, a P/E ratio of 26.01, a price-to-earnings-growth ratio of 3.19 and a beta of 0.65. The company has a quick ratio of 0.32, a current ratio of 0.35 and a debt-to-equity ratio of 1.15. The business has a fifty day simple moving average of $141.35 and a 200-day simple moving average of $139.61.

American Water Works (NYSE:AWK - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The utilities provider reported $1.48 EPS for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). American Water Works had a net margin of 21.91% and a return on equity of 10.34%. The company had revenue of $1.28 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same quarter in the prior year, the business earned $1.42 EPS. American Water Works's revenue was up 11.1% compared to the same quarter last year. Equities analysts predict that American Water Works Company, Inc. will post 5.71 EPS for the current year.

American Water Works Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Tuesday, August 12th will be given a $0.8275 dividend. This represents a $3.31 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, August 12th. American Water Works's dividend payout ratio is 59.64%.

American Water Works Profile

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.