On September 18, 2023, it was reported that Arete Wealth Advisors LLC had acquired a new stake in shares of American Water Works Company, Inc. (NYSE:AWK) during the first quarter of the year. The acquisition was disclosed in the company’s most recent Form 13F filing with the Securities and Exchange Commission (SEC). Arete Wealth Advisors LLC purchased 2,319 shares of the utilities provider’s stock, which were valued at approximately $340,000.
American Water Works is a prominent player in the utilities industry. As part of its ongoing efforts to provide value to its shareholders, the company recently announced a quarterly dividend. This dividend was paid out on Friday, September 1st to stockholders who were recorded as such on Tuesday, August 8th. Each share received a dividend amounting to $0.7075. On an annualized basis, this equates to a total dividend of $2.83 per share and represents a yield of 2.04%. The ex-dividend date for this payout was Monday, August 7th.
One important aspect to note about American Water Works is its stable payout ratio of 59.08%. This signifies that a significant proportion of the company’s earnings are distributed back to shareholders in the form of dividends while retaining enough capital for further growth and development initiatives.
In conclusion, Arete Wealth Advisors LLC’s recent acquisition showcases their confidence in American Water Works’ prospects and future performance within the utilities sector. As this company continues to prioritize providing returns to its investors through regular dividends, it remains an attractive option for individuals seeking stable income investments within the market.
American Water Works Company, Inc.
AWK
Strong Buy
Updated on: 05/12/2023
Financial Health
Very Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
American Water Works Co. Faces Mixed Investor Sentiment Amidst Hedge Fund Adjustments and Analyst Reports
American Water Works Company, Inc. is experiencing a mixed bag of investor sentiment as hedge funds and institutional investors adjust their stakes in the company. Several hedge funds have either added to or reduced their positions in American Water Works. Gradient Investments LLC purchased a new stake valued at $26,000 in the first quarter, while TCTC Holdings LLC also acquired a new stake worth $26,000 during the same period. Clear Street Markets LLC entered the scene by buying a new stake worth $28,000 in the fourth quarter. Adding to this group is Grey Fox Wealth Advisors LLC, which purchased a new position valued at $29,000. Spirit of America Management Corp NY sealed off this list by buying a new stake worth $29,000 in the first quarter of the year.
It’s interesting to note that 84.99% of American Water Works’ stock is currently owned by hedge funds and other institutional investors. This phenomenon could be seen as perplexing to some given the recent reports issued by equities analysts regarding the company’s performance.
Guggenheim recently lowered their price objective on American Water Works from $152.00 to $147.00. Royal Bank of Canada reiterated an “outperform” rating and set a price target of $169.00 for shares of American Water Works’ stock; furthermore, Bank of America also cut their price objective from $140.00 to $139.00.
Adding to this mix is StockNews.com, which downgraded American Water Works’ rating from hold to sell on August 31st.
In terms of average rating and price target for the company’s stock, Bloomberg data shows that American Water Works holds an average rating of “Hold” with an average price target set at $153.83.
Currently trading at $138.90 per share as of September 18th, American Water Works has displayed some fluctuations recently based on its moving averages: its fifty-day simple moving average stands at $141.65, while its two-hundred-day simple moving average is $143.86.
The company’s market capitalization is $27.04 billion, with a price-to-earnings ratio of 29.00 and a price-to-earnings-growth ratio of 3.55. These figures indicate a certain level of bustiness surrounding the stock.
American Water Works has a debt-to-equity ratio of 1.20 and a beta of 0.57, suggesting some level of risk associated with the company’s performance.
The utilities provider recently released its quarterly earnings data on July 27th, reporting earnings per share of $1.44 for the quarter, surpassing analysts’ consensus estimates of $1.27 by $0.17.
American Water Works demonstrated a return on equity of 10.31% with a net margin of 22.08%. The firm achieved revenue amounting to $1.10 billion for the quarter, exceeding analyst expectations of $1.01 billion.
Comparing these results to the same period last year, American Water Works’ quarterly revenue increased by an impressive 17.1%. Analysts are predicting that the company will post EPS (earnings per share) of 4.8 for the current fiscal year.
As investors navigate through conflicting opinions from equities analysts and evaluate performance metrics such as revenue growth and debt levels, they must weigh various factors in order to make informed decisions about American Water Works Company Inc.’s potential as an investment opportunity in today’s market climate.
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