Hsbc Holdings PLC Reduces Stock Position in American Water Works Company, Inc. $AWK

Key Points

• Hsbc Holdings PLC reduced its ownership in American Water Works Company by 4.5%, selling 25,171 shares, and now holds 538,903 shares valued at approximately $79.47 million.
• Several institutional investors, including Pictet Asset Management and Bank of America, have significantly increased their stakes in American Water Works recently, showcasing a strong interest in the company.
• The company's stock has received mixed ratings from analysts, with an average consensus price target of $143.30 and recent downward adjustments in price targets from firms like Barclays and Wells Fargo.

Hsbc Holdings PLC cut its position in American Water Works Company, Inc. (NYSE:AWK - Free Report) by 4.5% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 538,903 shares of the utilities provider's stock after selling 25,171 shares during the period. Hsbc Holdings PLC owned about 0.28% of American Water Works worth $79,468,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors also recently modified their holdings of AWK. PFG Advisors increased its stake in American Water Works by 33.4% in the 1st quarter. PFG Advisors now owns 9,699 shares of the utilities provider's stock worth $1,431,000 after buying an additional 2,429 shares in the last quarter. Wealth Enhancement Advisory Services LLC grew its position in shares of American Water Works by 2.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 124,352 shares of the utilities provider's stock worth $18,344,000 after purchasing an additional 2,570 shares in the last quarter. Brown Advisory Inc. lifted its holdings in American Water Works by 2.2% in the 1st quarter. Brown Advisory Inc. now owns 10,547 shares of the utilities provider's stock worth $1,556,000 after purchasing an additional 229 shares in the last quarter. Farther Finance Advisors LLC boosted its stake in American Water Works by 45.2% in the 1st quarter. Farther Finance Advisors LLC now owns 2,326 shares of the utilities provider's stock worth $342,000 after purchasing an additional 724 shares during the period. Finally, Oppenheimer & Co. Inc. grew its holdings in American Water Works by 21.5% during the 1st quarter. Oppenheimer & Co. Inc. now owns 7,692 shares of the utilities provider's stock valued at $1,135,000 after buying an additional 1,359 shares in the last quarter. Hedge funds and other institutional investors own 86.58% of the company's stock.

American Water Works Trading Up 0.1%

AWK traded up $0.0880 on Friday, hitting $145.9580. The company had a trading volume of 963,948 shares, compared to its average volume of 1,632,087. The business's fifty day simple moving average is $142.14 and its 200 day simple moving average is $141.24. The company has a quick ratio of 0.32, a current ratio of 0.35 and a debt-to-equity ratio of 1.15. American Water Works Company, Inc. has a 12-month low of $118.74 and a 12-month high of $155.50. The company has a market cap of $28.48 billion, a PE ratio of 26.30, a PEG ratio of 3.46 and a beta of 0.65.

American Water Works (NYSE:AWK - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The utilities provider reported $1.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.53 by ($0.05). The company had revenue of $1.28 billion during the quarter, compared to the consensus estimate of $1.22 billion. American Water Works had a net margin of 21.91% and a return on equity of 10.34%. American Water Works's revenue for the quarter was up 11.1% on a year-over-year basis. During the same period in the previous year, the business earned $1.42 earnings per share. American Water Works has set its FY 2025 guidance at 5.700-5.750 EPS. Equities research analysts expect that American Water Works Company, Inc. will post 5.71 EPS for the current year.

American Water Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Tuesday, August 12th will be issued a $0.8275 dividend. This represents a $3.31 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Tuesday, August 12th. American Water Works's dividend payout ratio (DPR) is 59.64%.

Analyst Upgrades and Downgrades

AWK has been the subject of several research analyst reports. UBS Group cut their target price on shares of American Water Works from $156.00 to $151.00 and set a "neutral" rating for the company in a research note on Tuesday, August 12th. Argus raised their price objective on American Water Works from $155.00 to $160.00 and gave the company a "buy" rating in a research report on Thursday, August 14th. Mizuho boosted their target price on American Water Works from $148.00 to $149.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Evercore ISI raised their price target on American Water Works from $139.00 to $148.00 and gave the company an "in-line" rating in a report on Friday, May 2nd. Finally, Wall Street Zen downgraded American Water Works from a "hold" rating to a "sell" rating in a research note on Wednesday, May 14th. Two investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $143.30.

Insider Activity at American Water Works

In related news, CAO Melissa K. Wikle sold 2,825 shares of the company's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $143.28, for a total transaction of $404,766.00. Following the transaction, the chief accounting officer directly owned 7,572 shares in the company, valued at approximately $1,084,916.16. This represents a 27.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.11% of the company's stock.

About American Water Works

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.