American Water Works (NYSE:AWK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $101.00 price target on the utilities provider’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 13.05% from the company’s current price.
According to Zacks, “In the last 12 months, shares of the American Water Works have gained higher than the industry it belongs to. The company continues to add customers and expand its market reach through acquisitions and organic growth. Year to date, the water utility has added 26,400 customers through closed acquisitions and organic growth and will add another 45,000 customers when the pending acquisitions are completed. The planned capital expenditure to improve its water and wastewater systems, will enable the company to provide efficient services to its expanding customer base. However, American Water Works is subject to stringent regulations, fluctuating weather patterns and risk of accidents due to old and soiled pipelines. High debt level is a headwind.”
A number of other research analysts have also recently commented on AWK. Boenning Scattergood reaffirmed a “hold” rating on shares of American Water Works in a research report on Friday, September 22nd. Robert W. Baird reaffirmed a “hold” rating and issued a $82.00 target price on shares of American Water Works in a research report on Sunday, October 1st. Wells Fargo & Company set a $89.00 target price on shares of American Water Works and gave the company a “hold” rating in a research report on Thursday, October 19th. Bank of America initiated coverage on shares of American Water Works in a research report on Tuesday, October 24th. They issued a “buy” rating and a $95.00 target price on the stock. Finally, Janney Montgomery Scott cut shares of American Water Works from a “buy” rating to a “neutral” rating in a research report on Friday, November 3rd. They noted that the move was a valuation call. Nine analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. The company presently has a consensus rating of “Hold” and an average price target of $88.43.
American Water Works (NYSE:AWK) last posted its earnings results on Wednesday, November 1st. The utilities provider reported $1.08 EPS for the quarter, meeting the Zacks’ consensus estimate of $1.08. American Water Works had a net margin of 15.82% and a return on equity of 9.69%. The company had revenue of $936.00 million for the quarter, compared to analysts’ expectations of $992.58 million. During the same quarter in the prior year, the company posted $1.05 earnings per share. American Water Works’s revenue for the quarter was up .6% compared to the same quarter last year. equities research analysts forecast that American Water Works will post 3.01 EPS for the current fiscal year.
In other news, insider Deborah A. Degillio sold 822 shares of the stock in a transaction dated Wednesday, November 8th. The shares were sold at an average price of $89.75, for a total transaction of $73,774.50. Following the sale, the insider now owns 3,659 shares of the company’s stock, valued at $328,395.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Michael A. Sgro sold 841 shares of the stock in a transaction dated Tuesday, November 7th. The stock was sold at an average price of $90.03, for a total transaction of $75,715.23. The disclosure for this sale can be found here. Insiders have sold 6,856 shares of company stock worth $616,700 in the last three months. Corporate insiders own 0.34% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of AWK. Pinebridge Investments L.P. acquired a new stake in American Water Works in the second quarter valued at approximately $118,000. Peddock Capital Advisors LLC acquired a new stake in American Water Works in the second quarter valued at approximately $131,000. Aviance Capital Management LLC acquired a new stake in American Water Works in the second quarter valued at approximately $147,000. Almanack Investment Partners LLC. acquired a new stake in American Water Works in the second quarter valued at approximately $154,000. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in American Water Works by 8.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,441 shares of the utilities provider’s stock valued at $190,000 after acquiring an additional 197 shares in the last quarter. 80.79% of the stock is currently owned by institutional investors and hedge funds.
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American Water Works Company Profile
American Water Works Company, Inc is a holding company for regulated and market-based subsidiaries throughout the United States and Ontario, Canada. The Company’s Regulated Businesses segment provides water and wastewater services as public utilities in 16 states in the United States as of December 31, 2016.
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