H2O America (NASDAQ:HTO) Cut to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded H2O America from “hold” to “sell,” contrasting with a broader analyst consensus of “Moderate Buy” and an average price target of $65.67.
• H2O America shares opened at $62.66, near their 12-month high of $67.09, with a $2.62 billion market capitalization. The company recently reported quarterly EPS of $0.72, beating estimates by $0.02, and reaffirmed fiscal 2026 EPS guidance of $3.08–$3.18.
• Institutional investors own 84.29% of the company, while Atlas Infrastructure Partners slightly increased its stake by purchasing 2,784 shares at an average price of $62.03.

H2O America (NASDAQ:HTO - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

A number of other research analysts have also recently commented on HTO. Bank of America reiterated a "buy" rating on shares of H2O America in a report on Wednesday, April 22nd. BTIG Research set a $70.00 target price on H2O America in a research note on Wednesday, July 29th. Barclays lifted their target price on H2O America from $60.00 to $67.00 and gave the company an "overweight" rating in a research report on Wednesday, July 15th. Wells Fargo & Company initiated coverage on H2O America in a research note on Monday, May 11th. They issued an "equal weight" rating and a $60.00 price target on the stock. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of H2O America in a report on Monday. Five research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $65.67.

H2O America Price Performance

H2O America stock opened at $62.66 on Friday. The company has a current ratio of 1.67, a quick ratio of 1.67 and a debt-to-equity ratio of 1.02. The company has a 50-day moving average price of $60.50 and a 200 day moving average price of $57.84. H2O America has a 12-month low of $43.75 and a 12-month high of $67.09. The stock has a market cap of $2.62 billion, a P/E ratio of 22.14, a PEG ratio of 6.37 and a beta of 0.34.

H2O America (NASDAQ:HTO - Get Free Report) last posted its earnings results on Monday, July 27th. The utilities provider reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.70 by $0.02. H2O America had a net margin of 12.91% and a return on equity of 6.65%. The company had revenue of $210.47 million for the quarter. H2O America has set its FY 2026 guidance at 3.080-3.180 EPS. Sell-side analysts anticipate that H2O America will post 3.13 earnings per share for the current year.

Insider Activity

In other H2O America news, major shareholder Atlas Infrastructure Partners purchased 2,784 shares of H2O America stock in a transaction dated Tuesday, July 7th. The shares were acquired at an average price of $62.03 per share, with a total value of $172,691.52. Following the completion of the transaction, the insider owned 4,615,265 shares of the company's stock, valued at $286,284,887.95. This trade represents a 0.06% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.52% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in HTO. Versant Capital Management Inc boosted its position in shares of H2O America by 22.0% in the 2nd quarter. Versant Capital Management Inc now owns 980 shares of the utilities provider's stock valued at $60,000 after purchasing an additional 177 shares during the period. Bessemer Group Inc. increased its position in H2O America by 44.6% during the first quarter. Bessemer Group Inc. now owns 661 shares of the utilities provider's stock worth $39,000 after buying an additional 204 shares during the period. New Age Alpha Advisors LLC increased its position in H2O America by 0.4% during the fourth quarter. New Age Alpha Advisors LLC now owns 61,651 shares of the utilities provider's stock worth $3,020,000 after buying an additional 239 shares during the period. Magellan Asset Management Ltd increased its position in H2O America by 1.3% during the fourth quarter. Magellan Asset Management Ltd now owns 21,849 shares of the utilities provider's stock worth $1,070,000 after buying an additional 285 shares during the period. Finally, Quadrant Capital Group LLC lifted its stake in H2O America by 194.9% in the fourth quarter. Quadrant Capital Group LLC now owns 525 shares of the utilities provider's stock valued at $26,000 after buying an additional 347 shares during the last quarter. Institutional investors and hedge funds own 84.29% of the company's stock.

H2O America Company Profile

SJW Group, through its subsidiaries, provides water utility and other related services in the United States. It operates in Water Utility Services and Real Estate Services segments. The company engages in the production, purchase, storage, purification, distribution, wholesale, and retail sale of water and wastewater services; and supplies groundwater from wells, surface water from watershed run-off and diversion, reclaimed water, and imported water purchased from the Santa Clara Valley Water District.

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