Zacks Research Issues Pessimistic Forecast for AWK Earnings

American Water Works Company, Inc. (NYSE:AWK - Free Report) - Equities research analysts at Zacks Research dropped their Q2 2025 earnings per share (EPS) estimates for shares of American Water Works in a research report issued on Monday, May 19th. Zacks Research analyst R. Department now forecasts that the utilities provider will post earnings per share of $1.48 for the quarter, down from their prior estimate of $1.50. The consensus estimate for American Water Works' current full-year earnings is $5.71 per share. Zacks Research also issued estimates for American Water Works' Q4 2025 earnings at $1.27 EPS, Q1 2026 earnings at $1.14 EPS, Q2 2026 earnings at $1.68 EPS, Q3 2026 earnings at $2.04 EPS, FY2026 earnings at $6.15 EPS, Q1 2027 earnings at $1.20 EPS and FY2027 earnings at $6.48 EPS.

Other equities research analysts have also issued research reports about the company. Wall Street Zen lowered American Water Works from a "hold" rating to a "sell" rating in a research report on Wednesday, May 14th. JPMorgan Chase & Co. lowered their price target on American Water Works from $147.00 to $128.00 and set a "neutral" rating on the stock in a research report on Tuesday, January 28th. UBS Group lowered American Water Works from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 25th. Barclays began coverage on American Water Works in a research report on Tuesday, April 22nd. They set an "underweight" rating and a $138.00 price target on the stock. Finally, Wells Fargo & Company boosted their price target on American Water Works from $142.00 to $147.00 and gave the stock an "equal weight" rating in a research report on Friday, May 2nd. Four analysts have rated the stock with a sell rating, six have given a hold rating and one has given a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $143.22.

American Water Works Stock Up 1.2%

American Water Works stock traded up $1.77 during midday trading on Wednesday, reaching $143.62. The stock had a trading volume of 740,281 shares, compared to its average volume of 1,218,192. The firm's fifty day simple moving average is $144.24 and its 200-day simple moving average is $135.23. American Water Works has a 1-year low of $118.74 and a 1-year high of $155.50. The stock has a market capitalization of $28.01 billion, a P/E ratio of 26.65, a price-to-earnings-growth ratio of 2.80 and a beta of 0.73. The company has a debt-to-equity ratio of 1.21, a quick ratio of 0.35 and a current ratio of 0.39.

American Water Works (NYSE:AWK - Get Free Report) last announced its earnings results on Wednesday, April 30th. The utilities provider reported $1.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.06 by ($0.01). American Water Works had a net margin of 22.44% and a return on equity of 10.29%. The firm had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same period in the prior year, the business posted $0.95 EPS. The firm's quarterly revenue was up 13.0% compared to the same quarter last year.

American Water Works Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 3rd. Investors of record on Tuesday, May 13th will be issued a dividend of $0.8275 per share. The ex-dividend date is Tuesday, May 13th. This is a positive change from American Water Works's previous quarterly dividend of $0.77. This represents a $3.31 dividend on an annualized basis and a dividend yield of 2.30%. American Water Works's payout ratio is presently 60.29%.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Focus Partners Wealth increased its holdings in shares of American Water Works by 0.5% during the 1st quarter. Focus Partners Wealth now owns 27,681 shares of the utilities provider's stock worth $4,084,000 after acquiring an additional 134 shares during the last quarter. Flaharty Asset Management LLC acquired a new position in shares of American Water Works during the 1st quarter worth approximately $30,000. Bayforest Capital Ltd increased its holdings in shares of American Water Works by 1,720.7% during the 1st quarter. Bayforest Capital Ltd now owns 1,056 shares of the utilities provider's stock worth $156,000 after acquiring an additional 998 shares during the last quarter. Woodline Partners LP increased its holdings in shares of American Water Works by 40.7% during the 1st quarter. Woodline Partners LP now owns 16,466 shares of the utilities provider's stock worth $2,429,000 after acquiring an additional 4,762 shares during the last quarter. Finally, Yaupon Capital Management LP acquired a new position in shares of American Water Works during the 1st quarter worth approximately $13,267,000. 86.58% of the stock is owned by institutional investors and hedge funds.

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.