RWC Asset Management LLP Boosts Stock Position in American Water Works Company, Inc. $AWK

Key Points

• RWC Asset Management LLP increased its stake in American Water Works by 69.2% in the fourth quarter, ending with 40,197 shares valued at about $5.25 million.
• Analyst sentiment remains mixed: UBS upgraded the stock to buy and raised its price target, while the overall consensus is still Hold with an average target price of $138.11.
• American Water Works reported Q1 earnings of $1.01 per share, below estimates, but revenue came in above expectations and the company raised its quarterly dividend to $0.895 per share for a 2.9% yield.

RWC Asset Management LLP raised its stake in American Water Works Company, Inc. (NYSE:AWK - Free Report) by 69.2% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 40,197 shares of the utilities provider's stock after purchasing an additional 16,434 shares during the period. RWC Asset Management LLP's holdings in American Water Works were worth $5,246,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. Salomon & Ludwin LLC grew its stake in shares of American Water Works by 71.7% during the fourth quarter. Salomon & Ludwin LLC now owns 194 shares of the utilities provider's stock worth $25,000 after acquiring an additional 81 shares during the last quarter. Nemes Rush Group LLC purchased a new stake in American Water Works in the 4th quarter worth approximately $27,000. Midwest Capital Advisors LLC purchased a new stake in American Water Works in the 4th quarter worth approximately $39,000. Atlantic Union Bankshares Corp raised its stake in shares of American Water Works by 803.1% during the 3rd quarter. Atlantic Union Bankshares Corp now owns 289 shares of the utilities provider's stock worth $40,000 after buying an additional 257 shares during the period. Finally, Elevation Wealth Partners LLC acquired a new position in shares of American Water Works during the 4th quarter worth approximately $40,000. Hedge funds and other institutional investors own 86.58% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. UBS Group raised American Water Works from a "neutral" rating to a "buy" rating and increased their price objective for the company from $137.00 to $140.00 in a research note on Friday, May 29th. Barclays increased their price objective on American Water Works from $122.00 to $124.00 and gave the company an "underweight" rating in a research note on Monday, April 20th. Weiss Ratings restated a "hold (c)" rating on shares of American Water Works in a report on Friday, March 27th. Wall Street Zen upgraded American Water Works from a "strong sell" rating to a "sell" rating in a report on Sunday, April 26th. Finally, Truist Financial dropped their target price on American Water Works from $137.00 to $130.00 and set a "hold" rating for the company in a report on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $138.11.

American Water Works Stock Up 0.1%

Shares of NYSE:AWK opened at $124.63 on Monday. The company has a quick ratio of 0.34, a current ratio of 0.37 and a debt-to-equity ratio of 1.16. The business has a fifty day moving average of $129.73 and a two-hundred day moving average of $130.82. The stock has a market cap of $24.34 billion, a P/E ratio of 22.10, a PEG ratio of 2.70 and a beta of 0.62. American Water Works Company, Inc. has a 52-week low of $120.57 and a 52-week high of $147.87.

American Water Works (NYSE:AWK - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.01 earnings per share for the quarter, missing analysts' consensus estimates of $1.10 by ($0.09). The business had revenue of $1.21 billion for 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 business's revenue for the quarter was up 5.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.05 earnings per share. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. On average, research analysts expect that American Water Works Company, Inc. will post 6.09 earnings per share for the current year.

American Water Works Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 12th were issued a dividend of $0.895 per share. The ex-dividend date was Tuesday, May 12th. This represents a $3.58 dividend on an annualized basis and a dividend yield of 2.9%. This is a boost from American Water Works's previous quarterly dividend of $0.83. American Water Works's dividend payout ratio (DPR) is currently 63.48%.

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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