California Water Service Group (NYSE:CWT) Shares Gap Up - What's Next?

Key Points

• California Water Service Group shares opened sharply higher, rising from a $46.14 close to a $48.11 open, though they later traded near $46.39.
• Analyst sentiment remains mixed but generally cautious: the stock has a consensus “Hold” rating and a $51.50 price target, with targets ranging from $49 to $53.
• The company reported stronger-than-expected quarterly results, with $0.93 EPS and $308.6 million in revenue, and maintains a quarterly dividend of $0.335 per share, equivalent to a 2.9% yield.

California Water Service Group (NYSE:CWT - Get Free Report) shares gapped up before the market opened on Thursday. The stock had previously closed at $46.14, but opened at $48.11. California Water Service Group shares last traded at $46.3930, with a volume of 19,726 shares.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Wall Street Zen raised California Water Service Group from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Weiss Ratings raised California Water Service Group from a "hold (c)" rating to a "hold (c+)" rating in a report on Tuesday, August 4th. Freedom Broker assumed coverage on California Water Service Group in a research report on Wednesday, September 23rd. They issued a "hold" rating and a $49.00 price target for the company. Finally, Seaport Research Partners reaffirmed a "buy" rating and set a $53.00 price target on shares of California Water Service Group in a research note on Wednesday, August 12th. Two investment analysts have rated the stock with a Hold rating. Based on data from MarketBeat, California Water Service Group has an average rating of "Hold" and a consensus price target of $51.50.

California Water Service Group Stock Up 0.6%

The company has a debt-to-equity ratio of 0.81, a current ratio of 0.70 and a quick ratio of 0.67. The firm's 50-day moving average price is $48.28 and its 200 day moving average price is $47.23. The firm has a market capitalization of $2.85 billion, a price-to-earnings ratio of 20.76, a price-to-earnings-growth ratio of 1.64 and a beta of 0.48.

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

California Water Service Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Monday, August 10th were paid a $0.3350 dividend. The ex-dividend date of this dividend was Monday, August 10th. This represents a $1.34 annualized dividend and a yield of 2.9%. California Water Service Group's payout ratio is presently 60.36%.

Insider Activity

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

Institutional Investors Weigh In On California Water Service Group

Several hedge funds have recently made changes to their positions in the business. Versant Capital Management Inc raised its position in shares of 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 worth $33,000 after buying an additional 470 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in California Water Service Group in the second quarter valued at $33,000. Bessemer Group Inc. grew its position in California Water Service Group by 67.9% during the first quarter. Bessemer Group Inc. now owns 744 shares of the utilities provider's stock valued at $34,000 after acquiring an additional 301 shares during the period. Brown Lisle Cummings Inc. purchased a new stake in California Water Service Group during the second quarter valued at about $36,000. Finally, Kelly Lawrence W & Associates Inc. CA purchased a new position in shares of California Water Service Group in the 2nd quarter worth about $49,000. Institutional investors and hedge funds own 82.78% of the company's stock.

About California Water Service Group

California Water Service Group NYSE: CWT is a water utility holding company that provides regulated water and related services through its operating subsidiaries. The company supplies drinking water to residential, commercial, industrial and institutional customers, managing water sourcing, treatment, storage, quality monitoring and distribution systems.

Its principal subsidiary, California Water Service Company, serves communities throughout California. The group also operates through Hawaii Water Service Company, New Mexico Water Service Company and Washington Water Service Company, giving it a presence in several U.S.

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