H2O America (NASDAQ:HTO) Reaches New 1-Year High - Should You Buy?

Key Points

• H2O America (NASDAQ:HTO) hit a new 52-week high of $66.05 before closing at $64.52, extending recent momentum in the stock.
• Analyst sentiment is mixed but generally constructive, with the consensus rating at Moderate Buy and an average price target of $63.33; Barclays recently raised its target to $67 and kept an overweight rating.
• The company beat its last quarterly EPS estimate, paid a $0.44 quarterly dividend (2.7% yield), and saw insider buying from Atlas Infrastructure Partners, while institutional ownership remains high at 84.29%.

H2O America (NASDAQ:HTO - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The company traded as high as $66.05 and last traded at $64.52, with a volume of 442520 shares. The stock had previously closed at $65.43.

Analyst Ratings Changes

HTO has been the topic of a number of recent analyst reports. Zacks Research raised H2O America from a "strong sell" rating to a "hold" rating in a research note on Monday, June 22nd. Bank of America reaffirmed a "buy" rating on shares of H2O America in a research note on Wednesday, April 22nd. 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 assumed coverage on shares of H2O America in a report on Monday, May 11th. They set an "equal weight" rating and a $60.00 price target on the stock. Finally, Wall Street Zen raised H2O America from a "sell" rating to a "hold" rating in a research report on Saturday, July 4th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $63.33.

H2O America Trading Down 1.4%

The firm has a 50 day simple moving average of $58.89 and a 200 day simple moving average of $56.74. The firm has a market cap of $2.70 billion, a P/E ratio of 22.10, a P/E/G ratio of 7.31 and a beta of 0.35. The company has a debt-to-equity ratio of 1.02, a quick ratio of 2.02 and a current ratio of 2.02.

H2O America (NASDAQ:HTO - Get Free Report) last posted its earnings results on Tuesday, April 28th. The utilities provider reported $0.50 earnings per share for the quarter, topping analysts' consensus estimates of $0.48 by $0.02. The business had revenue of $183.29 million for the quarter. H2O America had a net margin of 12.87% and a return on equity of 6.76%. H2O America has set its FY 2026 guidance at 3.080-3.180 EPS. On average, equities research analysts predict that H2O America will post 2.7 EPS for the current fiscal year.

H2O America Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 11th were issued a dividend of $0.44 per share. The ex-dividend date of this dividend was Monday, May 11th. This represents a $1.76 annualized dividend and a dividend yield of 2.7%. H2O America's payout ratio is presently 60.27%.

Insider Buying and Selling

In related news, major shareholder Atlas Infrastructure Partners purchased 2,784 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were purchased at an average price of $62.03 per share, with a total value of $172,691.52. Following the acquisition, the insider directly owned 4,615,265 shares of the company's stock, valued at approximately $286,284,887.95. This represents a 0.06% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.52% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On H2O America

Institutional investors have recently modified their holdings of the company. Quadrant Capital Group LLC grew its holdings in shares of H2O America by 194.9% during the 4th quarter. Quadrant Capital Group LLC now owns 525 shares of the utilities provider's stock valued at $26,000 after purchasing an additional 347 shares during the last quarter. Parallel Advisors LLC lifted its stake in H2O America by 1,020.8% in the fourth quarter. Parallel Advisors LLC now owns 594 shares of the utilities provider's stock worth $29,000 after purchasing an additional 541 shares during the last quarter. Bessemer Group Inc. lifted its stake in H2O America by 44.6% in the first quarter. Bessemer Group Inc. now owns 661 shares of the utilities provider's stock worth $39,000 after purchasing an additional 204 shares during the last quarter. Farther Finance Advisors LLC purchased a new stake in H2O America during the fourth quarter valued at about $40,000. Finally, IFP Advisors Inc boosted its position in H2O America by 139.8% during the fourth quarter. IFP Advisors Inc now owns 976 shares of the utilities provider's stock valued at $48,000 after buying an additional 569 shares during the period. 84.29% of the stock is currently owned by institutional investors.

About H2O America

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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