Hsbc Holdings PLC Sells 36,903 Shares of 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 reduced its position in Essential Utilities Inc. (NYSE:WTRG - Free Report) by 30.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm 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 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently modified their holdings of WTRG. Headlands Technologies LLC purchased a new position in shares of Essential Utilities in the first quarter worth $31,000. Valley National Advisers Inc. purchased a new position in shares of Essential Utilities in the first quarter worth $33,000. American National Bank & Trust purchased a new position in shares of Essential Utilities in the first quarter worth $35,000. National Pension Service lifted its holdings in shares of Essential Utilities by 75.0% in the first quarter. National Pension Service now owns 950 shares of the company's stock worth $38,000 after buying an additional 407 shares in the last quarter. Finally, Orion Capital Management LLC purchased a new position in shares of Essential Utilities in the fourth quarter worth $41,000. Hedge funds and other institutional investors own 74.78% of the company's stock.

Essential Utilities Price Performance

Essential Utilities stock opened at $39.10 on Wednesday. The company has a market cap of $10.96 billion, a price-to-earnings ratio of 16.78, a PEG ratio of 3.59 and a beta of 0.78. The firm's fifty day moving average is $37.83 and its 200 day moving average is $38.38. The company has a quick ratio of 0.58, a current ratio of 0.73 and a debt-to-equity ratio of 1.13. Essential Utilities Inc. has a 52-week low of $33.18 and a 52-week high of $41.65.

Essential Utilities (NYSE:WTRG - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.29 by $0.09. Essential Utilities had a net margin of 27.62% and a return on equity of 10.10%. The company had revenue of $514.91 million for the quarter, compared to the consensus estimate of $462.70 million. During the same quarter in the prior year, the firm earned $0.28 earnings per share. Essential Utilities's 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. Sell-side analysts forecast that Essential Utilities Inc. will post 1.99 EPS for the current fiscal year.

Essential Utilities Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Shareholders of record on Tuesday, August 12th will be given a dividend of $0.3426 per share. This represents a $1.37 dividend on an annualized basis and a yield of 3.5%. This is a positive change from Essential Utilities's previous quarterly dividend of $0.33. The ex-dividend date is Tuesday, August 12th. Essential Utilities's dividend payout ratio (DPR) is presently 58.80%.

Analyst Ratings Changes

Several equities analysts have recently commented on WTRG shares. Wall Street Zen downgraded shares of Essential Utilities from a "hold" rating to a "sell" rating in a report on Saturday. Robert W. Baird boosted their target price on shares of 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 boosted their target price on shares of Essential Utilities from $42.00 to $47.00 and gave the stock a "buy" rating in a report on Friday, August 15th. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price 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.

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