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American Water Works Company, Inc. to Issue Quarterly Dividend of $0.66 (NYSE:AWK)

Financial News Live · Aug 7, 2022 11:01

American Water Works Company, Inc. (NYSE:AWK – Get Rating) declared a quarterly dividend on Wednesday, July 27th, RTT News reports. Investors of record on Tuesday, August 9th will be given a dividend of 0.655 per share by the utilities provider on Thursday, September 1st. This represents a $2.62 dividend on an annualized basis and a yield of 1.68%. The ex-dividend date is Monday, August 8th.

American Water Works has a payout ratio of 54.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect American Water Works to earn $4.85 per share next year, which means the company should continue to be able to cover its $2.62 annual dividend with an expected future payout ratio of 54.0%.

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American Water Works Stock Down 1.9 %

AWK stock opened at $155.64 on Friday. The company has a market cap of $28.29 billion, a PE ratio of 21.77, a price-to-earnings-growth ratio of 4.33 and a beta of 0.43. The business has a 50-day simple moving average of $148.36 and a 200 day simple moving average of $153.19. American Water Works has a 52 week low of $129.45 and a 52 week high of $189.65. The company has a quick ratio of 0.54, a current ratio of 0.59 and a debt-to-equity ratio of 1.46.

American Water Works (NYSE:AWK – Get Rating) last posted its quarterly earnings results on Wednesday, July 27th. The utilities provider reported $1.20 EPS for the quarter, beating analysts' consensus estimates of $1.15 by $0.05. The business had revenue of $937.00 million during the quarter, compared to the consensus estimate of $979.52 million. American Water Works had a return on equity of 11.06% and a net margin of 33.99%. American Water Works's revenue for the quarter was down 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.14 earnings per share. Sell-side analysts anticipate that American Water Works will post 4.45 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have commented on AWK. Northcoast Research began coverage on American Water Works in a research note on Monday, July 18th. They set a "neutral" rating for the company. Janney Montgomery Scott raised American Water Works from a "neutral" rating to a "buy" rating in a research note on Friday, June 24th. UBS Group boosted their target price on American Water Works from $149.00 to $159.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 2nd. Wells Fargo & Company boosted their target price on American Water Works from $139.00 to $152.00 and gave the stock an "underweight" rating in a research note on Monday, July 18th. Finally, Barclays lowered their target price on American Water Works from $172.00 to $157.00 and set an "equal weight" rating for the company in a research note on Monday, July 18th. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $168.00.

Insider Activity

In other news, EVP Melanie M. Kennedy sold 693 shares of the company's stock in a transaction that occurred on Wednesday, June 1st. The stock was sold at an average price of $152.10, for a total value of $105,405.30. Following the completion of the transaction, the executive vice president now owns 11,361 shares of the company's stock, valued at $1,728,008.10. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. In related news, EVP Melanie M. Kennedy sold 693 shares of the company's stock in a transaction that occurred on Wednesday, June 1st. The stock was sold at an average price of $152.10, for a total value of $105,405.30. Following the sale, the executive vice president now directly owns 11,361 shares in the company, valued at $1,728,008.10. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Melanie M. Kennedy sold 1,029 shares of the company's stock in a transaction that occurred on Friday, May 20th. The shares were sold at an average price of $145.52, for a total value of $149,740.08. Following the completion of the sale, the executive vice president now owns 12,054 shares in the company, valued at $1,754,098.08. The disclosure for this sale can be found here. 0.09% of the stock is currently owned by insiders.

Institutional Trading of American Water Works

Several institutional investors have recently added to or reduced their stakes in AWK. Salem Investment Counselors Inc. boosted its holdings in shares of American Water Works by 45.3% during the 1st quarter. Salem Investment Counselors Inc. now owns 385 shares of the utilities provider's stock worth $64,000 after buying an additional 120 shares in the last quarter. Covestor Ltd lifted its holdings in shares of American Water Works by 115.7% in the 1st quarter. Covestor Ltd now owns 563 shares of the utilities provider's stock worth $93,000 after purchasing an additional 302 shares in the last quarter. Eudaimonia Partners LLC bought a new position in shares of American Water Works in the 1st quarter worth $205,000. West Family Investments Inc. bought a new position in shares of American Water Works in the 1st quarter worth $206,000. Finally, Fund Management at Engine No. 1 LLC bought a new position in shares of American Water Works in the 1st quarter worth $254,000. 82.77% of the stock is currently owned by institutional investors.

American Water Works Company Profile

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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 3.4 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.