H2O America (NASDAQ:HTO) Shares Break Below 200-Day Moving Average Following Weak Earnings

Key Points

• H2O America shares fell below their 200-day moving average after the company reported quarterly EPS of $1.04, missing analysts’ $1.06 consensus estimate. The stock traded as low as $58.03, compared with a 200-day average of $58.62.
• The utilities provider generated $250.23 million in quarterly revenue, with a 12.91% net margin and 6.65% return on equity.
• Analyst sentiment remains favorable, with five Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $64.50. Institutional investors own approximately 84.29% of the shares.

Shares of H2O America (NASDAQ:HTO - Get Free Report) crossed below its 200-day moving average during trading on Monday following a weaker than expected earnings announcement. The stock has a 200-day moving average of $58.62 and traded as low as $58.03. H2O America shares last traded at $58.48, with a volume of 609,013 shares changing hands.

The utilities provider reported $1.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.06 by ($0.02). H2O America had a return on equity of 6.65% and a net margin of 12.91%. The firm had revenue of $250.23 million during the quarter.

Wall Street Analysts Forecast Growth

Several research firms recently commented on HTO. Robert W. Baird lifted their price objective on H2O America from $67.00 to $72.00 and gave the stock an "outperform" rating in a report on Wednesday, July 29th. Barclays reduced their target price on shares of H2O America from $66.00 to $65.00 and set an "overweight" rating for the company in a report on Monday, October 19th. Weiss Ratings reissued a "hold (c+)" rating on shares of H2O America in a report on Monday, August 3rd. Seaport Research Partners reissued a "buy" rating and issued a $67.00 target price on shares of H2O America in a report on Wednesday, August 12th. Finally, BTIG Research restated a "buy" rating and set a $65.00 price target on shares of H2O America in a report on Tuesday, October 20th. Five research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, H2O America presently has an average rating of "Moderate Buy" and a consensus price target of $64.50.

Institutional Investors Weigh In On H2O America

A number of hedge funds have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio purchased a new stake in shares of H2O America during the 2nd quarter valued at $37,000. Bessemer Group Inc. lifted its stake in shares of H2O America by 44.6% in the 1st quarter. Bessemer Group Inc. now owns 661 shares of the utilities provider's stock valued at $39,000 after purchasing an additional 204 shares during the period. Allworth Financial LP acquired a new position in shares of H2O America in the second quarter worth about $42,000. EverSource Wealth Advisors LLC boosted its position in H2O America by 76.2% during the first quarter. EverSource Wealth Advisors LLC now owns 911 shares of the utilities provider's stock worth $53,000 after purchasing an additional 394 shares in the last quarter. Finally, Versant Capital Management Inc lifted its position in shares of H2O America by 22.0% during the 2nd quarter. Versant Capital Management Inc now owns 980 shares of the utilities provider's stock valued at $60,000 after buying an additional 177 shares in the last quarter. 84.29% of the stock is currently owned by hedge funds and other institutional investors.

H2O America Trading Down 0.7%

The company has a quick ratio of 1.67, a current ratio of 1.67 and a debt-to-equity ratio of 1.02. The firm has a market cap of $2.45 billion, a price-to-earnings ratio of 20.66, a price-to-earnings-growth ratio of 6.80 and a beta of 0.33. The company's 50-day moving average price is $61.34 and its 200-day moving average price is $58.62.

About H2O America

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