Hsbc Holdings PLC Decreases Position in Essential Utilities Inc. $WTRG

Key Points

• Hsbc Holdings PLC has reduced its stake in Essential Utilities Inc. by 30.9%, selling 36,903 shares in the first quarter, now holding 82,343 shares worth $3.25 million.
• Essential Utilities recently reported earnings per share of $0.38 for the quarter, surpassing expectations, and plans to increase its dividend to $0.3426 per share, reflecting a yield of 3.5%.
• Analysts have mixed views on Essential Utilities, with one firm downgrading its rating to "sell" while others have raised their target price to $47.00 with an overall consensus rating of "Moderate Buy".

Hsbc Holdings PLC lessened its holdings in shares of Essential Utilities Inc. (NYSE:WTRG - Free Report) by 30.9% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 82,343 shares of the company's stock after selling 36,903 shares during the quarter. Hsbc Holdings PLC's holdings in Essential Utilities were worth $3,250,000 at the end of the most recent quarter.

Several other institutional investors have also recently modified their holdings of the company. Bfsg LLC increased its position in shares of Essential Utilities by 22.1% during the 1st quarter. Bfsg LLC now owns 1,453 shares of the company's stock valued at $57,000 after purchasing an additional 263 shares during the last quarter. New Age Alpha Advisors LLC grew its stake in shares of Essential Utilities by 24.7% in the first quarter. New Age Alpha Advisors LLC now owns 1,531 shares of the company's stock worth $61,000 after purchasing an additional 303 shares during the last quarter. Community Bank N.A. grew its stake in shares of Essential Utilities by 1.3% in the first quarter. Community Bank N.A. now owns 23,928 shares of the company's stock worth $946,000 after purchasing an additional 304 shares during the last quarter. Wealthspire Advisors LLC grew its stake in shares of Essential Utilities by 2.0% in the first quarter. Wealthspire Advisors LLC now owns 16,322 shares of the company's stock worth $645,000 after purchasing an additional 327 shares during the last quarter. Finally, Apella Capital LLC grew its stake in shares of Essential Utilities by 4.4% in the first quarter. Apella Capital LLC now owns 7,914 shares of the company's stock worth $299,000 after purchasing an additional 334 shares during the last quarter. 74.78% of the stock is currently owned by institutional investors.

Essential Utilities Stock Down 0.3%

NYSE:WTRG traded down $0.12 during mid-day trading on Monday, hitting $39.55. 2,721,209 shares of the company's stock were exchanged, compared to its average volume of 2,087,314. Essential Utilities Inc. has a one year low of $33.18 and a one year high of $41.65. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.73 and a quick ratio of 0.58. The business has a fifty day moving average price of $38.00 and a 200 day moving average price of $38.52. The company has a market cap of $11.09 billion, a PE ratio of 16.97, a P/E/G ratio of 3.63 and a beta of 0.83.

Essential Utilities (NYSE:WTRG - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.29 by $0.09. Essential Utilities had a net margin of 27.62% and a return on equity of 10.10%. The business 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 firm posted $0.28 earnings per share. Essential Utilities's quarterly revenue was up 18.5% on a year-over-year basis. Essential Utilities has set its FY 2025 guidance at 2.070-2.110 EPS. Equities analysts predict that Essential Utilities Inc. will post 1.99 EPS for the current year.

Essential Utilities Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Tuesday, August 12th will be issued a $0.3426 dividend. This represents a $1.37 annualized dividend and a yield of 3.5%. This is a boost from Essential Utilities's previous quarterly dividend of $0.33. The ex-dividend date of this dividend is Tuesday, August 12th. Essential Utilities's dividend payout ratio is presently 58.80%.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Zacks Research lowered shares of Essential Utilities from a "strong-buy" rating to a "hold" rating in a report on Monday, August 25th. UBS Group lifted their price objective on Essential Utilities from $42.00 to $47.00 and gave the company a "buy" rating in a research report on Friday, August 15th. Wall Street Zen raised Essential Utilities from a "sell" rating to a "hold" rating in a research report on Sunday. Finally, Robert W. Baird lifted their price objective on Essential Utilities from $46.00 to $47.00 and gave the company an "outperform" rating in a research report on Monday, August 4th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, Essential Utilities has a consensus rating of "Moderate Buy" and a consensus price target of $44.50.

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.