Global Water Resources, Inc. (NASDAQ:GWRS) Announces Monthly Dividend of $0.03

Key Points

• Global Water Resources declared a monthly dividend of $0.0253 per share payable on March 31 to holders of record on March 17, representing an annualized yield of about 4.1%.
• The company has a payout ratio of 107.1%, meaning it currently cannot cover the dividend from earnings, and analysts' expected ~$0.30 EPS next year implies the dividend would remain at roughly a 100% payout ratio—raising sustainability concerns.
• Director Andrew M. Cohn purchased 18,305 shares at about $7.20, insiders own 54.3% of the stock, and the shares trade near $7.36 (52‑week range: $7.12–$11.39) after a recent 2.8% rise.

Global Water Resources, Inc. (NASDAQ:GWRS - Get Free Report) declared a monthly dividend on Friday, February 27th. Investors of record on Tuesday, March 17th will be given a dividend of 0.0253 per share by the utilities provider on Tuesday, March 31st. This represents a c) dividend on an annualized basis and a dividend yield of 4.1%. The ex-dividend date is Tuesday, March 17th.

Global Water Resources has decreased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 8 consecutive years. Global Water Resources has a payout ratio of 107.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Global Water Resources to earn $0.30 per share next year, which means the company may not be able to cover its $0.30 annual dividend with an expected future payout ratio of 100.0%.

Global Water Resources Trading Up 2.8%

Shares of Global Water Resources stock opened at $7.36 on Friday. Global Water Resources has a fifty-two week low of $7.12 and a fifty-two week high of $11.39. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.76 and a current ratio of 0.76. The company has a market capitalization of $211.67 million, a P/E ratio of 73.61 and a beta of 0.96. The company has a fifty day moving average of $8.67 and a 200 day moving average of $9.20.

Global Water Resources (NASDAQ:GWRS - Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The utilities provider reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.04 by ($0.05). Global Water Resources had a net margin of 5.30% and a return on equity of 4.73%. The business had revenue of $13.54 million for the quarter, compared to the consensus estimate of $13.73 million. On average, sell-side analysts anticipate that Global Water Resources will post 0.28 earnings per share for the current fiscal year.

Insider Activity at Global Water Resources

In other news, Director Andrew M. Cohn acquired 18,305 shares of the business's stock in a transaction dated Friday, March 13th. The stock was purchased at an average price of $7.20 per share, for a total transaction of $131,796.00. Following the completion of the transaction, the director directly owned 2,560,984 shares in the company, valued at approximately $18,439,084.80. This trade represents a 0.72% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 54.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Global Water Resources

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in GWRS. Goldman Sachs Group Inc. increased its stake in Global Water Resources by 20.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 103,024 shares of the utilities provider's stock worth $1,062,000 after acquiring an additional 17,257 shares during the last quarter. Jane Street Group LLC bought a new position in shares of Global Water Resources during the 1st quarter valued at approximately $109,000. Rhumbline Advisers boosted its position in shares of Global Water Resources by 12.0% during the 1st quarter. Rhumbline Advisers now owns 17,595 shares of the utilities provider's stock valued at $181,000 after acquiring an additional 1,884 shares during the last quarter. Atria Investments Inc purchased a new position in shares of Global Water Resources in the second quarter valued at $160,000. Finally, Los Angeles Capital Management LLC grew its holdings in shares of Global Water Resources by 222.7% in the second quarter. Los Angeles Capital Management LLC now owns 51,286 shares of the utilities provider's stock valued at $523,000 after purchasing an additional 35,395 shares in the last quarter. 27.91% of the stock is owned by institutional investors.

About Global Water Resources

Global Water Resources, Inc NASDAQ: GWRS is a publicly traded holding company based in Scottsdale, Arizona, specializing in the ownership and management of water and wastewater utilities. The company provides critical potable water delivery, wastewater collection and treatment, and reclaimed water services to residential, commercial and industrial customers across select communities in Central and Southern Arizona.

The company operates multiple regulated utility systems, serving communities such as Anthem, Biltmore, Florence and San Tan Valley.

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