Zacks Research Has Pessimistic Outlook of AWK Q1 Earnings

Key Points

• Zacks Research has decreased its Q1 2026 earnings per share estimate for American Water Works from $1.13 to $1.12, while the full-year consensus estimate remains at $5.71 per share.
• Several analysts have adjusted their price targets for American Water Works, with UBS Group and Barclays lowering their targets to $151.00 and $128.00, respectively, while Argus raised theirs to $160.00.
• American Water Works recently paid a quarterly dividend of $0.8275, equating to an annualized dividend of $3.31 with a yield of 2.4%, while institutional investors own over 86% of the company's stock.

American Water Works Company, Inc. (NYSE:AWK - Free Report) - Research analysts at Zacks Research reduced their Q1 2026 earnings per share estimates for shares of American Water Works in a report issued on Tuesday, September 9th. Zacks Research analyst Team now forecasts that the utilities provider will earn $1.12 per share for the quarter, down from their prior forecast of $1.13. 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' Q3 2026 earnings at $2.07 EPS, Q1 2027 earnings at $1.24 EPS and FY2027 earnings at $6.50 EPS.

A number of other analysts also recently weighed in on AWK. UBS Group cut their price target on shares of American Water Works from $156.00 to $151.00 and set a "neutral" rating on the stock in a research report on Tuesday, August 12th. Mizuho raised their price target on American Water Works from $148.00 to $149.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Barclays dropped their price target on American Water Works from $138.00 to $128.00 and set an "underweight" rating on the stock in a research report on Thursday, July 10th. Argus raised their price target on American Water Works from $155.00 to $160.00 and gave the stock a "buy" rating in a research report on Thursday, August 14th. Finally, Wells Fargo & Company dropped their price target on American Water Works from $147.00 to $141.00 and set an "equal weight" rating on the stock in a research report on Friday, August 1st. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $143.30.

American Water Works Trading Down 0.3%

Shares of NYSE:AWK traded down $0.46 during mid-day trading on Wednesday, reaching $139.17. The stock had a trading volume of 994,551 shares, compared to its average volume of 999,133. The firm has a market cap of $27.15 billion, a PE ratio of 25.08, a price-to-earnings-growth ratio of 3.31 and a beta of 0.69. The firm has a 50 day simple moving average of $142.51 and a two-hundred day simple moving average of $142.68. The company has a current ratio of 0.35, a quick ratio of 0.32 and a debt-to-equity ratio of 1.15. American Water Works has a twelve month low of $118.74 and a twelve month high of $155.50.

American Water Works (NYSE:AWK - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The utilities provider reported $1.48 earnings per share for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.22 billion. American Water Works had a net margin of 21.91% and a return on equity of 10.34%. The business's revenue was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.42 earnings per share. American Water Works has set its FY 2025 guidance at 5.700-5.750 EPS.

American Water Works Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 3rd. Investors of record on Tuesday, August 12th were given a $0.8275 dividend. This represents a $3.31 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Tuesday, August 12th. American Water Works's dividend payout ratio (DPR) is currently 59.64%.

Institutional Investors Weigh In On American Water Works

A number of hedge funds and other institutional investors have recently bought and sold shares of AWK. Oliver Lagore Vanvalin Investment Group acquired a new stake in American Water Works in the 2nd quarter valued at approximately $28,000. Concord Wealth Partners acquired a new stake in American Water Works in the 2nd quarter valued at approximately $28,000. Cloud Capital Management LLC acquired a new stake in American Water Works in the 1st quarter valued at approximately $29,000. WPG Advisers LLC bought a new position in American Water Works in the first quarter valued at approximately $29,000. Finally, Elevation Point Wealth Partners LLC bought a new position in American Water Works in the second quarter valued at approximately $29,000. Institutional investors and hedge funds own 86.58% of the company's stock.

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.