Mitsubishi UFJ Asset Management Co. Ltd. Grows Stock Holdings in American Water Works Company, Inc. $AWK

Key Points

• Mitsubishi UFJ Asset Management increased its stake in American Water Works by 5.1% in Q4, adding 20,014 shares to reach 413,234 shares worth about $53.9 million.
• American Water Works reported mixed quarterly results, missing EPS expectations at $1.01 versus $1.10, while revenue came in above estimates at $1.21 billion and rose 5.7% year over year.
• The company raised its quarterly dividend to $0.895 per share, and analysts currently rate the stock a consensus Hold with an average price target of $139.11.

Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in American Water Works Company, Inc. (NYSE:AWK - Free Report) by 5.1% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 413,234 shares of the utilities provider's stock after buying an additional 20,014 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. owned approximately 0.21% of American Water Works worth $53,853,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also bought and sold shares of AWK. Salomon & Ludwin LLC increased its holdings in shares of American Water Works by 71.7% in the fourth quarter. Salomon & Ludwin LLC now owns 194 shares of the utilities provider's stock worth $25,000 after purchasing an additional 81 shares during the period. Grey Fox Wealth Advisors LLC bought a new position in shares of American Water Works in the third quarter worth $27,000. Harel Insurance Investments & Financial Services Ltd. bought a new position in shares of American Water Works in the third quarter worth $28,000. Cloud Capital Management LLC bought a new position in shares of American Water Works in the third quarter worth $29,000. Finally, Westfuller Advisors LLC bought a new position in shares of American Water Works in the third quarter worth $33,000. 86.58% of the stock is currently owned by hedge funds and other institutional investors.

American Water Works Stock Down 0.9%

Shares of NYSE:AWK opened at $125.03 on Friday. American Water Works Company, Inc. has a 52-week low of $121.28 and a 52-week high of $147.87. The firm has a fifty day moving average of $134.69 and a 200 day moving average of $132.18. The firm has a market capitalization of $24.42 billion, a PE ratio of 22.17, a price-to-earnings-growth ratio of 2.78 and a beta of 0.64. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.34 and a current ratio of 0.37.

American Water Works (NYSE:AWK - Get Free Report) last announced its earnings results on Wednesday, April 29th. The utilities provider reported $1.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.10 by ($0.09). The company had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.17 billion. American Water Works had a return on equity of 10.20% and a net margin of 21.17%.The firm's revenue was up 5.7% on a year-over-year basis. During the same quarter last year, the firm posted $1.05 earnings per share. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. As a group, research analysts anticipate that American Water Works Company, Inc. will post 6.09 EPS for the current fiscal year.

American Water Works Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 12th will be paid a $0.895 dividend. This is a boost from American Water Works's previous quarterly dividend of $0.83. This represents a $3.58 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, May 12th. American Water Works's payout ratio is presently 58.69%.

Analysts Set New Price Targets

Several research firms have recently weighed in on AWK. Weiss Ratings reaffirmed a "hold (c)" rating on shares of American Water Works in a report on Friday, March 27th. Bank of America raised shares of American Water Works from an "underperform" rating to a "neutral" rating and upped their price target for the stock from $117.00 to $139.00 in a report on Monday, January 12th. Wall Street Zen raised shares of American Water Works from a "strong sell" rating to a "sell" rating in a report on Sunday, April 26th. Wells Fargo & Company set a $131.00 price target on shares of American Water Works in a report on Tuesday, April 21st. Finally, Truist Financial began coverage on shares of American Water Works in a report on Tuesday, April 21st. They issued a "hold" rating and a $137.00 price target on the stock. One investment analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $139.11.

About American Water Works

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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