Hsbc Holdings PLC Has $73.53 Million Position in American Water Works Company, Inc. $AWK

Key Points

• Hsbc Holdings PLC cut its American Water Works stake by 24% in the second quarter, selling 175,729 shares and retaining 557,154 shares valued at approximately $73.5 million. Institutional investors collectively own 86.58% of AWK.
• Analysts maintain a generally neutral outlook, with a consensus “Hold” rating and an average price target of $138.78. AWK recently traded at $140.49, near its 12-month high of $145.64.
• American Water Works exceeded quarterly earnings expectations, reporting $1.61 in EPS and $1.35 billion in revenue, while revenue increased 6.2% year over year. The company pays a quarterly dividend of $0.895 per share, yielding approximately 2.5% annually.

Hsbc Holdings PLC lessened its holdings in American Water Works Company, Inc. (NYSE:AWK - Free Report) by 24.0% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 557,154 shares of the utilities provider's stock after selling 175,729 shares during the quarter. Hsbc Holdings PLC owned approximately 0.28% of American Water Works worth $73,527,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of American Water Works during the second quarter valued at $2,712,173,000. Wellington Management Group LLP grew its stake in shares of American Water Works by 35.2% in the second quarter. Wellington Management Group LLP now owns 14,911,963 shares of the utilities provider's stock worth $1,962,116,000 after purchasing an additional 3,883,057 shares during the last quarter. State Street Corp grew its stake in shares of American Water Works by 4.2% in the fourth quarter. State Street Corp now owns 12,037,823 shares of the utilities provider's stock worth $1,570,936,000 after purchasing an additional 486,090 shares during the last quarter. GQG Partners LLC acquired a new stake in American Water Works in the second quarter valued at $1,171,477,000. Finally, Geode Capital Management LLC increased its holdings in American Water Works by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 5,039,122 shares of the utilities provider's stock valued at $655,025,000 after purchasing an additional 33,359 shares during the period. 86.58% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several brokerages recently issued reports on AWK. JPMorgan Chase & Co. raised their target price on American Water Works from $138.00 to $147.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 8th. Wall Street Zen raised American Water Works from a "strong sell" rating to a "sell" rating in a research note on Monday, August 3rd. Barclays raised their price objective on American Water Works from $124.00 to $130.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 15th. Truist Financial set a $139.00 price objective on American Water Works in a research note on Tuesday, August 4th. Finally, Bank of America reaffirmed a "neutral" rating on shares of American Water Works in a research note on Thursday, July 16th. One research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $138.78.

American Water Works Price Performance

Shares of NYSE AWK opened at $140.49 on Tuesday. American Water Works Company, Inc. has a twelve month low of $120.57 and a twelve month high of $145.64. The firm has a fifty day simple moving average of $135.34 and a 200 day simple moving average of $132.42. The company has a market capitalization of $27.92 billion, a PE ratio of 24.35, a P/E/G ratio of 2.87 and a beta of 0.59. The company has a quick ratio of 0.49, a current ratio of 0.52 and a debt-to-equity ratio of 1.20.

American Water Works (NYSE:AWK - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The utilities provider reported $1.61 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 business had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.33 billion. During the same quarter in the prior year, the firm posted $1.48 earnings per share. The business's quarterly revenue 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. On average, sell-side analysts forecast that American Water Works Company, Inc. will post 6.09 EPS for the current year.

American Water Works Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Tuesday, August 11th were given a dividend of $0.895 per share. The ex-dividend date was Tuesday, August 11th. This represents a $3.58 annualized dividend and a dividend yield of 2.5%. American Water Works's dividend payout ratio is presently 62.05%.

American Water Works Profile

American Water Works Company, Inc NYSE: AWK is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company's operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.

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