Sterling Capital Management LLC Acquires 54,965 Shares of American Water Works Company, Inc. $AWK

Key Points

• Sterling Capital Management increased its American Water Works stake by 934.3% in the third quarter, purchasing 54,965 additional shares and bringing its holdings to 60,848 shares valued at approximately $7.88 million.
• Institutional investors own 86.58% of AWK, with major firms including BlackRock, Wellington Management, and GQG Partners either initiating or expanding positions.
• AWK traded at $142.83, while analysts maintained a consensus “Hold” rating with a $136.75 price target; the company also pays a quarterly dividend of $0.895, yielding about 2.5% annually.

Sterling Capital Management LLC raised its stake in shares of American Water Works Company, Inc. (NYSE:AWK - Free Report) by 934.3% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 60,848 shares of the utilities provider's stock after buying an additional 54,965 shares during the quarter. Sterling Capital Management LLC's holdings in American Water Works were worth $7,878,000 at the end of the most recent quarter.

Other hedge funds have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of American Water Works during the second quarter valued at approximately $2,712,173,000. Wellington Management Group LLP increased its position in shares of American Water Works by 35.2% during the second quarter. Wellington Management Group LLP now owns 14,911,963 shares of the utilities provider's stock valued at $1,962,116,000 after acquiring an additional 3,883,057 shares in the last quarter. GQG Partners LLC bought a new stake in shares of American Water Works during the second quarter valued at approximately $1,171,477,000. Amundi raised its holdings in American Water Works by 4.3% in the 1st quarter. Amundi now owns 4,351,056 shares of the utilities provider's stock worth $592,081,000 after acquiring an additional 179,127 shares during the last quarter. Finally, Legal & General Group Plc purchased a new position in American Water Works in the 2nd quarter worth approximately $443,787,000. 86.58% of the stock is owned by institutional investors.

American Water Works Trading Down 0.3%

NYSE:AWK traded down $0.40 during midday trading on Friday, hitting $142.83. The stock had a trading volume of 1,978,040 shares, compared to its average volume of 1,881,741. The company has a quick ratio of 0.49, a current ratio of 0.52 and a debt-to-equity ratio of 1.20. The company has a market capitalization of $28.38 billion, a price-to-earnings ratio of 24.75, a PEG ratio of 2.92 and a beta of 0.58. The stock has a 50-day moving average of $135.13 and a 200 day moving average of $131.97. American Water Works Company, Inc. has a one year low of $120.57 and a one year high of $144.14.

American Water Works (NYSE:AWK - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The utilities provider reported $1.61 earnings per share for the quarter, topping the consensus estimate of $1.53 by $0.08. The firm had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.33 billion. American Water Works had a net margin of 21.35% and a return on equity of 10.20%. The company's revenue was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.48 EPS. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. As a group, sell-side analysts forecast that American Water Works Company, Inc. will post 6.08 EPS for the current year.

American Water Works Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th were given a $0.8950 dividend. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $3.58 dividend on an annualized basis and a dividend yield of 2.5%. American Water Works's payout ratio is presently 62.05%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on AWK shares. Bank of America restated a "neutral" rating on shares of American Water Works in a research report on Thursday, July 16th. Weiss Ratings upgraded shares of American Water Works from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, October 2nd. Barclays reduced their price objective on shares of American Water Works from $130.00 to $127.00 and set an "underweight" rating on the stock in a research report on Monday, October 19th. Wall Street Zen raised American Water Works from a "strong sell" rating to a "sell" rating in a research note on Monday, August 3rd. Finally, JPMorgan Chase & Co. boosted their price objective on American Water Works from $138.00 to $147.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 8th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $136.75.

About American Water Works

American Water Works Company, Inc is a public water and wastewater utility that provides essential services to residential, commercial, industrial and institutional customers. Through its regulated businesses, the company supplies drinking water, collects and treats wastewater, and manages related infrastructure, including treatment plants, pipelines, storage facilities and customer service systems.

Founded in 1886, American Water has grown into one of the largest water and wastewater service providers in the United States.

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