In recent news, it has been reported that SG Americas Securities LLC has significantly reduced its holdings in American Water Works Company, Inc. (NYSE:AWK). According to a disclosure made to the Securities and Exchange Commission (SEC), the institutional investor now owns 12,608 shares of the utilities provider’s stock, after selling 10,591 shares during the second quarter of this year. The total value of SG Americas Securities LLC’s holdings in American Water Works is estimated to be around $1,800,000.
This reduction in holdings by SG Americas Securities LLC could indicate different factors at play. It is possible that the institutional investor decided to diversify its portfolio and allocate funds elsewhere. Alternatively, they might have chosen to sell their shares due to a lack of confidence or changing market conditions surrounding American Water Works.
Besides the reduction in holdings, there have been other recent updates related to American Water Works. The company recently announced a quarterly dividend payment which was distributed on September 1st. Stockholders who held positions as of August 8th received a dividend payment of $0.7075 per share. Looking at it from an annual perspective, this represents a dividend payout ratio of 59.08% and a yield of 2.14%. Notably, the ex-dividend date for this particular dividend was on August 7th.
Investors and market analysts are carefully observing these recent developments with American Water Works Company as they try to understand the implications for future growth and stability within the utilities sector. By scrutinizing changes in ownership and dividend payouts, stakeholders can better assess the financial health and performance outlook for American Water Works.
As always, investors and interested parties are advised to conduct thorough research before making any investment decisions. To keep up-to-date with further developments concerning American Water Works or other similar companies within the utilities sector, I recommend reviewing our latest research report on American Water Works Company for deeper insights into the company’s financials and market positioning. Stay informed and make well-informed investment choices.
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Institutional Investors Make Moves in American Water Works Holdings, Mixed Views Persist
Institutional investors have been making significant moves in their holdings of American Water Works (NYSE:AWK) recently. One notable example is Zimmer Partners LP, which acquired a new position worth $308,215,000 during the first quarter of this year. Norges Bank also entered the scene by purchasing a new position valued at $281,724,000 in the fourth quarter of last year. Moneta Group Investment Advisors LLC saw an astronomical increase in its stake as it lifted its holdings in American Water Works by a staggering 64,405.1% during the same period. American Century Companies Inc. followed suit with a substantial increase of 5,072.0% in its own holdings during the first quarter, while Impax Asset Management Group plc added to the momentum by raising its stake by 17.3% during the same timeframe.
Unsurprisingly, these institutional moves have had an impact on ownership percentages as well. Currently, 84.99% of American Water Works’ stock is owned by institutional investors.
Despite these notable developments within the investment landscape for American Water Works, opinions from research firms regarding AWK have been mixed. Royal Bank of Canada reaffirmed its “outperform” rating for the stock and set a price target of $169.00 on September 14th, while StockNews.com downgraded AWK from a “hold” to a “sell” rating on August 31st. Furthermore, Guggenheim lowered their price objective from $152.00 to $147.00 on July 7th and Bank of America reduced their own forecast from $140.00 to $139.00 just one day prior.
With different research firms holding distinct views on the stock’s outlook, it is important to consider that based on data provided by Bloomberg, American Water Works currently holds an average rating of “Hold”, with an average price target expected to reach $153.83.
Shares of American Water Works opened at $132.25 on Friday. The company’s financial figures also provide some insights into its performance, with a quick ratio of 1.07 and a current ratio of 1.13 highlighting its liquidity. Furthermore, the company boasts a relatively low debt-to-equity ratio of 1.20. Moving averages indicate that the stock has been trending downwards, with a 50-day simple moving average of $140.83 and a two-hundred-day simple moving average of $143.67.
With a market cap of $25.75 billion, American Water Works possesses solid fundamentals that have contributed to its price-to-earnings (P/E) ratio standing at 27.61 and a beta value of 0.57.
When it comes to the company’s recent earnings report, American Water Works surpassed Wall Street expectations as it delivered earnings per share (EPS) amounting to $1.44 for the quarter ended on July 27th, beating consensus estimates by $0.17 per share. Additionally, the company reported revenue of $1.10 billion during the same period, surpassing analyst estimates which projected sales totaling $1.01 billion. Looking back at last year’s numbers for comparison purposes, American Water Works experienced substantial growth with quarterly revenue up by 17.1% year over year.
Analysts currently predict that American Water Works will achieve EPS around $4.8 for this fiscal year.
Only time will tell how these institutional investments will affect American Water Works’ future growth and performance in an increasingly competitive market landscape.
