California Water Service Group (NYSE:CWT) Short Interest Up 70.4% in August

Key Points

• Short interest surged 70.4% in August to 2.43 million shares, representing 4.0% of California Water Service Group’s outstanding shares and 5.2 days to cover.
• The company reported stronger-than-expected quarterly results, with earnings of $0.93 per share and revenue of $308.6 million, up 16.5% year over year.
• Analysts maintain a consensus “Hold” rating with a $54 price target, while the company continues paying a quarterly dividend of $0.335, yielding about 2.8% annually.

California Water Service Group (NYSE:CWT - Get Free Report) was the target of a large growth in short interest in the month of August. As of August 31st, there was short interest totaling 2,429,274 shares, a growth of 70.4% from the August 15th total of 1,425,414 shares. Currently, 4.0% of the company's shares are short sold. Based on an average daily volume of 468,427 shares, the days-to-cover ratio is presently 5.2 days.

California Water Service Group Stock Up 0.3%

Shares of California Water Service Group stock traded up $0.13 during trading on Wednesday, reaching $47.95. 338,648 shares of the company traded hands, compared to its average volume of 487,676. The firm has a market capitalization of $2.97 billion, a PE ratio of 21.60, a P/E/G ratio of 1.71 and a beta of 0.50. California Water Service Group has a 1-year low of $41.29 and a 1-year high of $53.82. The company has a 50 day moving average price of $50.09 and a 200-day moving average price of $47.03. The company has a debt-to-equity ratio of 0.81, a current ratio of 0.70 and a quick ratio of 0.67.

California Water Service Group (NYSE:CWT - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The utilities provider reported $0.93 EPS for the quarter, topping analysts' consensus estimates of $0.80 by $0.13. California Water Service Group had a net margin of 12.63% and a return on equity of 7.74%. The business had revenue of $308.60 million during the quarter, compared to analysts' expectations of $283.50 million. During the same period last year, the company posted $0.71 earnings per share. The business's quarterly revenue was up 16.5% on a year-over-year basis. As a group, equities research analysts expect that California Water Service Group will post 2.57 earnings per share for the current fiscal year.

California Water Service Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Monday, August 10th were given a $0.335 dividend. This represents a $1.34 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Monday, August 10th. California Water Service Group's payout ratio is presently 60.36%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on CWT shares. Wall Street Zen upgraded California Water Service Group from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Seaport Research Partners restated a "buy" rating and set a $53.00 target price on shares of California Water Service Group in a research report on Wednesday, August 12th. Finally, Weiss Ratings raised California Water Service Group from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday, August 4th. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $54.00.

Insider Buying and Selling

In other news, Director Lester A. Snow sold 500 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $50.21, for a total value of $25,105.00. Following the sale, the director directly owned 17,817 shares of the company's stock, valued at approximately $894,591.57. This represents a 2.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Thomas M. Krummel sold 3,700 shares of the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $50.37, for a total transaction of $186,369.00. Following the sale, the director owned 20,104 shares of the company's stock, valued at approximately $1,012,638.48. This trade represents a 15.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.78% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of California Water Service Group in the 2nd quarter worth $33,000. Versant Capital Management Inc grew its position in California Water Service Group by 228.2% in the 2nd quarter. Versant Capital Management Inc now owns 676 shares of the utilities provider's stock valued at $33,000 after purchasing an additional 470 shares during the period. Bessemer Group Inc. increased its stake in California Water Service Group by 67.9% during the 1st quarter. Bessemer Group Inc. now owns 744 shares of the utilities provider's stock valued at $34,000 after purchasing an additional 301 shares in the last quarter. Brown Lisle Cummings Inc. bought a new stake in California Water Service Group during the 2nd quarter valued at $36,000. Finally, Kelly Lawrence W & Associates Inc. CA acquired a new position in California Water Service Group during the second quarter worth $49,000. 82.78% of the stock is owned by institutional investors and hedge funds.

About California Water Service Group

California Water Service Group NYSE: CWT is a water utility holding company that provides regulated water service to residential, commercial, industrial and public-sector customers. Its operating companies collect, treat, test and distribute drinking water through local water systems, while also maintaining the wells, reservoirs, treatment facilities, pipelines and other infrastructure needed to deliver reliable service.

The company operates primarily through California Water Service Company, along with subsidiaries serving customers in Hawaii, New Mexico and Washington.

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