Seaport Res Ptn Has Negative Outlook of AWK FY2025 Earnings

Key Points

• Seaport Res Ptn has reduced its 2025 earnings per share (EPS) estimate for American Water Works to $5.80, down from an earlier estimate of $5.82, while the consensus estimate stands at $5.71 per share.
• American Water Works is set to issue a quarterly dividend of $0.8275, scheduled for payment on September 3rd, which reflects an annual yield of 2.37%.
• The company's stock currently holds a consensus rating of "Hold" with an average target price of $141.67, amidst mixed ratings from various analysts.

American Water Works Company, Inc. (NYSE:AWK - Free Report) - Stock analysts at Seaport Res Ptn cut their FY2025 earnings estimates for American Water Works in a research note issued to investors on Monday, July 28th. Seaport Res Ptn analyst A. Storozynski now anticipates that the utilities provider will post earnings of $5.80 per share for the year, down from their prior estimate of $5.82. The consensus estimate for American Water Works' current full-year earnings is $5.71 per share. Seaport Res Ptn also issued estimates for American Water Works' FY2026 earnings at $6.20 EPS.

Other analysts also recently issued research reports about the stock. Wall Street Zen downgraded shares of American Water Works from a "hold" rating to a "sell" rating in a report on Wednesday, May 14th. Mizuho upped their price target on shares of American Water Works from $148.00 to $149.00 and gave the company a "neutral" rating in a report on Friday. Barclays reduced their price target on shares of American Water Works from $138.00 to $128.00 and set an "underweight" rating on the stock in a report on Thursday, July 10th. Evercore ISI upped their price target on shares of American Water Works from $139.00 to $148.00 and gave the company an "in-line" rating in a report on Friday, May 2nd. Finally, Wells Fargo & Company reduced their price objective on shares of American Water Works from $147.00 to $141.00 and set an "equal weight" rating on the stock in a research note on Friday. Four equities research analysts have rated the stock with a sell rating, six have issued a hold rating and one has issued a buy rating to the company. According to data from MarketBeat.com, American Water Works presently has an average rating of "Hold" and an average target price of $142.00.

American Water Works Price Performance

Shares of NYSE AWK traded up $5.48 on Thursday, hitting $145.72. The company's stock had a trading volume of 2,693,140 shares, compared to its average volume of 1,105,963. American Water Works has a 12-month low of $118.74 and a 12-month high of $155.50. The company has a market capitalization of $28.43 billion, a price-to-earnings ratio of 26.26, a price-to-earnings-growth ratio of 3.32 and a beta of 0.65. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.35 and a quick ratio of 0.44. The stock has a 50 day moving average of $141.24 and a 200-day moving average of $139.12.

American Water Works (NYSE:AWK - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The utilities provider reported $1.48 EPS for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). The company had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.22 billion. American Water Works had a return on equity of 10.34% and a net margin of 21.91%. The firm's quarterly revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the firm posted $1.42 EPS.

Hedge Funds Weigh In On American Water Works

A number of large investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD grew its holdings in American Water Works by 881.1% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 3,704,995 shares of the utilities provider's stock valued at $546,562,000 after purchasing an additional 3,327,352 shares in the last quarter. Pictet Asset Management Holding SA lifted its position in American Water Works by 24.1% in the 1st quarter. Pictet Asset Management Holding SA now owns 4,532,131 shares of the utilities provider's stock valued at $668,566,000 after purchasing an additional 878,951 shares during the last quarter. Groupama Asset Managment lifted its position in American Water Works by 114.3% in the 1st quarter. Groupama Asset Managment now owns 1,505,106 shares of the utilities provider's stock valued at $2,296,000 after purchasing an additional 802,639 shares during the last quarter. Bank of America Corp DE raised its position in shares of American Water Works by 38.4% during the 4th quarter. Bank of America Corp DE now owns 2,695,734 shares of the utilities provider's stock worth $335,592,000 after buying an additional 747,316 shares in the last quarter. Finally, Nuveen LLC bought a new stake in shares of American Water Works during the 1st quarter worth about $103,053,000. Hedge funds and other institutional investors own 86.58% of the company's stock.

Insider Activity

In other American Water Works news, CAO Melissa K. Wikle sold 2,825 shares of the stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $143.28, for a total transaction of $404,766.00. Following the transaction, the chief accounting officer owned 7,572 shares of the company's stock, valued at $1,084,916.16. This trade represents a 27.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.11% of the company's stock.

American Water Works Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 3rd. Investors of record on Tuesday, August 12th will be paid a dividend of $0.8275 per share. The ex-dividend date of this dividend is Tuesday, August 12th. This represents a $3.31 annualized dividend and a dividend yield of 2.3%. American Water Works's dividend payout ratio is presently 59.64%.

About American Water Works

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.