True North Advisors LLC Acquires New Position in American Water Works Company, Inc. (NYSE:AWK)

Key Points

• True North Advisors LLC has acquired a new stake in American Water Works Company, purchasing 1,734 shares valued at approximately $256,000 during the first quarter.
• The company will distribute a quarterly dividend of $0.8275 per share, with a yield of 2.3%, which will be paid on September 3rd to investors of record on August 12th.
• Analysts have mixed opinions on AWK stock; while Evercore ISI raised their target price to $148.00, Wall Street Zen downgraded their rating from hold to sell.

True North Advisors LLC acquired a new stake in shares of American Water Works Company, Inc. (NYSE:AWK - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 1,734 shares of the utilities provider's stock, valued at approximately $256,000.

Several other institutional investors have also added to or reduced their stakes in AWK. Bank of Nova Scotia raised its position in American Water Works by 21.2% during the fourth quarter. Bank of Nova Scotia now owns 27,025 shares of the utilities provider's stock valued at $3,364,000 after purchasing an additional 4,725 shares in the last quarter. Renaissance Technologies LLC acquired a new position in American Water Works during the fourth quarter valued at approximately $19,495,000. CenterBook Partners LP raised its position in American Water Works by 71.1% during the fourth quarter. CenterBook Partners LP now owns 8,227 shares of the utilities provider's stock valued at $1,024,000 after purchasing an additional 3,419 shares in the last quarter. Scotia Capital Inc. raised its position in American Water Works by 13.7% during the fourth quarter. Scotia Capital Inc. now owns 28,451 shares of the utilities provider's stock valued at $3,542,000 after purchasing an additional 3,424 shares in the last quarter. Finally, Treasurer of the State of North Carolina raised its position in American Water Works by 1.3% during the fourth quarter. Treasurer of the State of North Carolina now owns 88,074 shares of the utilities provider's stock valued at $10,964,000 after purchasing an additional 1,110 shares in the last quarter. 86.58% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, CAO Melissa K. Wikle sold 2,825 shares of American Water Works stock in a transaction on Friday, May 30th. The shares were sold at an average price of $143.28, for a total transaction of $404,766.00. Following the completion of the transaction, the chief accounting officer owned 7,572 shares of the company's stock, valued at $1,084,916.16. This trade represents a 27.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.11% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts have weighed in on AWK shares. Evercore ISI raised their target price on shares of American Water Works from $139.00 to $148.00 and gave the company an "in-line" rating in a research report on Friday, May 2nd. Wall Street Zen lowered shares of American Water Works from a "hold" rating to a "sell" rating in a research report on Wednesday, May 14th. Wells Fargo & Company cut their target price on shares of American Water Works from $147.00 to $141.00 and set an "equal weight" rating on the stock in a research report on Friday, August 1st. UBS Group restated a "neutral" rating and issued a $156.00 target price (up previously from $154.00) on shares of American Water Works in a research report on Friday, July 11th. Finally, Barclays cut their target price on shares of American Water Works from $138.00 to $128.00 and set an "underweight" rating on the stock in a research report on Thursday, July 10th. Four analysts have rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the stock. According to MarketBeat, American Water Works has a consensus rating of "Hold" and a consensus target price of $142.00.

American Water Works Price Performance

AWK stock opened at $145.29 on Friday. The company has a fifty day moving average price of $141.41 and a 200-day moving average price of $139.87. The company has a market capitalization of $28.35 billion, a P/E ratio of 26.18, a PEG ratio of 3.27 and a beta of 0.65. American Water Works Company, Inc. has a 52-week low of $118.74 and a 52-week high of $155.50. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.32 and a current ratio of 0.35.

American Water Works (NYSE:AWK - Get Free Report) last announced its earnings results on Wednesday, July 30th. The utilities provider reported $1.48 earnings per share for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). American Water Works had a return on equity of 10.34% and a net margin of 21.91%. The firm had revenue of $1.28 billion for the quarter, compared to the consensus estimate of $1.22 billion. During the same period in the prior year, the business earned $1.42 EPS. American Water Works's quarterly revenue was up 11.1% on a year-over-year basis. As a group, equities analysts expect that American Water Works Company, Inc. will post 5.71 EPS for the current year.

American Water Works Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Tuesday, August 12th will be paid a dividend of $0.8275 per share. This represents a $3.31 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, August 12th. American Water Works's dividend payout ratio (DPR) is currently 59.64%.

About American Water Works

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.

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