August 14, 2023 – Nuance Investments LLC, a prominent investment firm, recently revealed in its latest disclosure with the Securities and Exchange Commission (SEC) that it has increased its position in American Water Works Company, Inc. The firm reported a significant surge of 31.7% during the first quarter, equating to an addition of 111,037 shares to their existing portfolio.
With this increase in shares, Nuance Investments now owns a total of 461,075 shares of American Water Works. Based on their overall investment portfolio, this accounts for approximately 1.4%, positioning it as the company’s 23rd largest holding. Impressively enough, the value of this investment amounts to an astounding $67,543,000 at the end of the most recent quarter.
Looking closely at American Water Works itself, it is worth noting that several analysts have weighed in on the stock. One notable example is Guggenheim who recently decreased their target price from $152.00 to $147.00 in a research report released on July 7th. Similarly, StockNews.com upgraded their rating from “sell” to “hold” while Bank of America reduced its target price from $140.00 to $139.00 in a separate research report published on July 6th.
These evaluations by industry experts have resulted in four analysts assigning a hold rating to American Water Works stock, while only one analyst has given it a buy rating thus far. Bloomberg data reveals that as per these ratings and assessments combined together, the company currently holds an average rating of “Hold” with a consensus target price set at $157.00.
In trading activities on Friday alone, shares of American Water Works exhibited upward momentum by increasing $0.72 and reaching $140.20 during trading hours. This session saw approximately 461,308 shares exchanged hands compared to its average volume of 896,117 shares. This impressive performance, coupled with other factors, contribute to the company’s robust market capitalization of $27.29 billion.
Delving further into its financial health, American Water Works displays solid fundamental indicators. With a price-to-earnings (P/E) ratio of 29.27 and a price/earnings to growth (P/E/G) ratio of 3.58, the company exhibits a favorable valuation in relation to its earnings growth prospects.
Moreover, American Water Works showcases stability and resilience through its beta value of 0.56. This indicates that the stock is less volatile than the broader market benchmark. It has also demonstrated commendable consistency by maintaining a fifty-two week low of $122.77 and a fifty-two week high of $162.59.
Beyond these numbers lies the company’s efficient financial management. American Water Works boasts a debt-to-equity ratio of 1.20, which indicates that it has a balanced approach towards borrowing funds to finance its operations and investments. The company exhibits favorable liquidity as well, with quick and current ratios standing at 1.07 and 1.13 respectively.
Despite these impressive figures, there is room for improvement as reflected by the recent decline in American Water Works’ stock performance. The company’s fifty-day simple moving average currently stands at $144.85, while its two-hundred day simple moving average is slightly higher at $146.00.
In conclusion, Nuance Investments LLC’s increased position in American Water Works Company, Inc., along with various analyst evaluations and market trends, sheds light on an intriguing investment opportunity in the utility sector segment. With potential upside remaining despite recent fluctuations in stock price, astute investors may find merit in considering American Water Works for their portfolio diversification strategy.
Disclaimer: The information presented here is based on publicly available data as of August 14th, 2023, and should not be taken as financial advice or a recommendation to invest. It is always recommended to conduct thorough research and seek professional advice before making investment decisions.
Institutional Investors and Hedge Funds Show Growing Interest in American Water Works
American Water Works (NYSE:AWK), a leading utilities provider, has been experiencing notable changes in its positions lately. Several institutional investors and hedge funds have acquired new positions in the company, reflecting growing interest and confidence in its potential. Gradient Investments LLC, Clear Street Markets LLC, Grey Fox Wealth Advisors LLC, Spirit of America Management Corp NY, and Richard W. Paul & Associates LLC are among the entities that have recently made significant investments in American Water Works.
Gradient Investments LLC entered the American Water Works market during the first quarter of this year by acquiring a new position worth approximately $26,000. Clear Street Markets LLC followed closely behind in the fourth quarter with an investment valued at approximately $28,000. Grey Fox Wealth Advisors LLC also joined the trend in the fourth quarter by acquiring a new position worth approximately $29,000. Spirit of America Management Corp NY made their move during the first quarter as well by acquiring a stake worth approximately $29,000. Finally, Richard W. Paul & Associates LLC closed off this series of investments during the fourth quarter with an acquisition valued at approximately $31,000. These institutional investors and hedge funds now own a significant 84.05% of American Water Works’ stock.
In another development showcasing strong belief in American Water Works’ future prospects, director Michael Marberry purchased 1,400 shares of the company’s stock on Thursday, May 18th. The average cost per share was $142.35 for a total transaction amounting to $199,290.00. Following this acquisition, Marberry now holds 3,673 shares directly within the company equivalent to a value of $522,851.55.
Analysts have weighed in on American Water Works’ stock as well. Guggenheim recently decreased their target price from $152 to $147 while StockNews.com upgraded it from “sell” to “hold”. Bank of America also reduced their target price from $140 to $139. Four research analysts have given the stock a hold rating, while one analyst has assigned it a buy rating. Bloomberg data currently indicates an average rating of “Hold” for American Water Works with a consensus target price of $157.00.
In terms of financial performance, American Water Works announced its quarterly earnings data on Thursday, July 27th. The company reported earnings per share (EPS) of $1.44 for the quarter, surpassing the consensus estimate by $0.17. Its revenue stood at $1.10 billion during the quarter, exceeding the consensus estimate of $1.01 billion. With a net margin of 22.08% and return on equity of 10.31%, American Water Works demonstrated its ability to deliver solid financial results. The company’s quarterly revenue showed a growth rate of 17.1% year-over-year.
Additionally, American Water Works recently declared that it will be distributing a quarterly dividend to shareholders on Friday, September 1st. Investors who were recorded as shareholders on Tuesday, August 8th will receive a dividend payout of $0.7075 per share held—a total annualized dividend amounting to $2.83 and a yield of 2.02%. The ex-dividend date is set for Monday, August 7th.
With these recent changes in positions by institutional investors and hedge funds, along with positive developments in the form of director acquisitions and strong financial performance, American Water Works continues to attract attention in the utilities industry.