Squarepoint Ops LLC Raises Stake in Essential Utilities Inc. $WTRG

Key Points

• Squarepoint Ops LLC increased its Essential Utilities stake by 17.1% in the second quarter, bringing its holdings to 810,036 shares worth approximately $31 million. Institutional investors collectively own 74.78% of the company.
• Essential Utilities reported quarterly EPS of $0.38, slightly above analyst expectations, while revenue rose 3.1% year over year to $530.85 million. The company also raised its quarterly dividend to $0.3606, implying a 3.4% annual yield.
• Analyst sentiment remains moderately positive, with a consensus rating of “Moderate Buy” and an average price target of $43, compared with the stock’s reported price of $41.92.

Squarepoint Ops LLC boosted its position in Essential Utilities Inc. (NYSE:WTRG - Free Report) by 17.1% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 810,036 shares of the company's stock after acquiring an additional 118,543 shares during the period. Squarepoint Ops LLC owned about 0.29% of Essential Utilities worth $31,032,000 at the end of the most recent reporting period.

Other large investors have also recently added to or reduced their stakes in the company. Versor Investments LP purchased a new stake in shares of Essential Utilities during the 4th quarter worth about $1,430,000. Polar Asset Management Partners Inc. purchased a new position in Essential Utilities in the second quarter valued at about $3,095,000. Brighton Jones LLC purchased a new stake in shares of Essential Utilities in the fourth quarter worth about $638,000. Bank of America Corp DE raised its holdings in shares of Essential Utilities by 9.9% during the 1st quarter. Bank of America Corp DE now owns 1,473,632 shares of the company's stock valued at $59,343,000 after buying an additional 132,566 shares during the period. Finally, PensionDanmark Pensionsforsikringsaktieselskab grew its position in Essential Utilities by 114.4% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 137,908 shares of the company's stock valued at $5,283,000 after acquiring an additional 73,600 shares in the last quarter. 74.78% of the stock is currently owned by hedge funds and other institutional investors.

Essential Utilities Stock Performance

Shares of WTRG stock opened at $41.92 on Wednesday. The company has a quick ratio of 0.62, a current ratio of 0.78 and a debt-to-equity ratio of 1.20. The business has a 50 day moving average of $39.98 and a two-hundred day moving average of $39.23. Essential Utilities Inc. has a 52 week low of $36.10 and a 52 week high of $42.37. The company has a market cap of $11.90 billion, a P/E ratio of 21.39, a PEG ratio of 3.14 and a beta of 0.64.

Essential Utilities (NYSE:WTRG - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.37 by $0.01. Essential Utilities had a net margin of 21.60% and a return on equity of 8.23%. The business had revenue of $530.85 million during the quarter, compared to analyst estimates of $538.90 million. During the same quarter in the prior year, the firm earned $0.38 earnings per share. The company's quarterly revenue was up 3.1% on a year-over-year basis. As a group, analysts anticipate that Essential Utilities Inc. will post 2.21 EPS for the current year.

Essential Utilities Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th were paid a $0.3606 dividend. The ex-dividend date of this dividend was Tuesday, August 11th. This is a positive change from Essential Utilities's previous quarterly dividend of $0.34. This represents a $1.44 annualized dividend and a dividend yield of 3.4%. Essential Utilities's dividend payout ratio (DPR) is currently 73.47%.

Insider Activity

In other Essential Utilities news, insider Colleen Arnold sold 2,855 shares of the firm's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $39.55, for a total transaction of $112,915.25. Following the transaction, the insider owned 17,347 shares of the company's stock, valued at approximately $686,073.85. This trade represents a 14.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.36% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on WTRG. Weiss Ratings raised shares of Essential Utilities from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, September 2nd. UBS Group raised their target price on Essential Utilities from $43.00 to $46.00 and gave the company a "buy" rating in a research note on Thursday, July 2nd. Barclays increased their price target on Essential Utilities from $38.00 to $40.00 and gave the company an "underweight" rating in a report on Wednesday, July 15th. Finally, Wall Street Zen upgraded Essential Utilities to a "sell" rating in a research note on Saturday, July 4th. Two equities research analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $43.00.

About Essential Utilities

Essential Utilities, Inc, formerly known as Aqua America, is a publicly traded water and natural gas utility holding company. Through its regulated water and wastewater subsidiaries, the company provides essential water services to residential, commercial and industrial customers. In addition, Essential Utilities delivers natural gas distribution services in Pennsylvania through its Peoples Gas subsidiary, offering integrated utility solutions under a unified corporate framework.

The company traces its roots to the Philadelphia Suburban Water Company, founded in 1886 to serve growing communities outside Philadelphia.

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