Essential Utilities (NYSE:WTRG) Hits New 12-Month High - What's Next?

Key Points

• Essential Utilities hit a new 52-week high, trading around $45.81 after a previous close of $45.13.
• The company beat quarterly expectations, reporting EPS of $0.38 versus $0.33 forecast and revenue of $508.26 million; revenue grew 6.6% year over year. Analysts’ average rating is “Moderate Buy,” with a consensus price target of $43.
• Essential Utilities announced a quarterly dividend of $0.3606 per share, equivalent to $1.44 annually and a yield of about 3.2%.

Essential Utilities Inc. (NYSE:WTRG - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday. The stock traded as high as $45.67 and last traded at $45.8110, with a volume of 102,856 shares traded. The stock had previously closed at $45.13.

Wall Street Analysts Forecast Growth

Several research analysts have commented on WTRG shares. UBS Group lowered their price objective on shares of Essential Utilities from $49.00 to $47.00 and set a "buy" rating for the company in a research report on Friday, October 16th. Weiss Ratings upgraded Essential Utilities from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 22nd. Finally, Barclays lifted their price target on Essential Utilities from $38.00 to $40.00 and gave the company an "underweight" rating in a research note on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Essential Utilities currently has an average rating of "Moderate Buy" and a consensus target price of $43.00.

Essential Utilities Price Performance

The stock has a market cap of $12.92 billion, a P/E ratio of 22.90, a P/E/G ratio of 3.31 and a beta of 0.62. The company's 50 day moving average price is $40.97 and its 200-day moving average price is $39.50. The company has a quick ratio of 0.62, a current ratio of 0.78 and a debt-to-equity ratio of 1.20.

Essential Utilities (NYSE:WTRG - Get Free Report) last released its quarterly earnings results on Tuesday, November 3rd. The company reported $0.38 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.05. The firm had revenue of $508.26 million for the quarter, compared to analyst estimates of $450.44 million. Essential Utilities had a return on equity of 8.42% and a net margin of 21.79%. The business's revenue was up 6.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.33 EPS. As a group, sell-side analysts expect that Essential Utilities Inc. will post 2.21 earnings per share for the current year.

Essential Utilities Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 10th will be issued a $0.3606 dividend. The ex-dividend date is Tuesday, November 10th. This represents a $1.44 annualized dividend and a yield of 3.2%. Essential Utilities's dividend payout ratio is presently 73.47%.

Insiders Place Their Bets

In other Essential Utilities news, insider Colleen Arnold sold 2,855 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $39.55, for a total transaction of $112,915.25. Following the completion of the sale, the insider owned 17,347 shares of the company's stock, valued at approximately $686,073.85. This represents a 14.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.36% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of WTRG. Mirae Asset Global Investments Co. Ltd. bought a new position in Essential Utilities during the third quarter worth $26,000. Root Financial Partners LLC acquired a new stake in Essential Utilities in the third quarter worth $27,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Essential Utilities in the second quarter worth $33,000. Cassaday & Co Wealth Management LLC bought a new stake in Essential Utilities in the first quarter valued at $40,000. Finally, Orion Capital Management LLC bought a new stake in Essential Utilities in the second quarter valued at $43,000. Institutional investors and hedge funds own 74.78% of the company's stock.

Essential Utilities Company Profile

Essential Utilities, Inc is a regulated utility company that provides water, wastewater and natural gas services to residential, commercial, industrial and municipal customers. Through its Aqua and Peoples operations, the company owns and operates water and wastewater systems, natural gas distribution networks and related infrastructure. Its services include the treatment and delivery of drinking water, collection and treatment of wastewater, and the distribution of natural gas.

The company serves customers across several U.S.

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