June 12, 2023 – The conscientious investor, Renaissance Technologies LLC, has recently taken a decision to lessen its stake in Artesian Resources Co. (NASDAQ:ARTNA) by 6.8%. According to the most recent disclosure with the Securities and Exchange Commission (SEC), it has sold off 21,700 shares of the utilities provider’s stock in the fourth quarter. Despite owning only about 3.13% of Artesian Resources worth $17,422,000 as of its most recent SEC filing, such reductions usually raise questions about the future of said company.
Artesian Resources Corp., founded in 1927 and headquartered in Newark, DE., is a holding company providing water resource management services that cater mainly to residential customers. Other activities include commercial water and wastewater services, contract services for governments or developers of properties among other liabilities. As per Monday’s mid-day trading update which saw shares trade at $49.58-per-stock mark – losing 0.30 in value – compared to an average volume of 44k shares; there seems to be some instability within Artesian Resources’ stock performance, and the question remains: What is responsible for this?
It’s important first to note what financial experts point out as their two notable figures: Artesian Resources has a debt-to-equity ratio of 0.93 and a PE ratio of 27.45 outpacing competitors substantially; which is necessary for long-term investors but poses a risk short-term investors should consider keenly.
Furthermore, critics suggest that while Artisan Resources appears tied firmly to local contracts in commercial operations with government properties utilizing their service on an excellent utility-based platform servicing industry-leading professionals like Amazon facilities boasting an award-winning rate schedule confirmed against others nationally this may be costly for them going forward without substantial investment – if you buy into critiques’ negativity.
Another area investors might choose to focus on is their liability – they include operating agreements and consent orders. The company has been under consent orders with the EPA since it failed to achieve pollution reduction goals for facilities three years back. Artesian Resource reportedly also paid out $1.45m in fines for health violations of their facilities which could be a possible deterrent to potential investors.
Ultimately, despite Renaissance Technologies LLC’s trimming of stakes in its holdings and concerns highlighted, investors need to remain objective concerning trends like these. If Artesian Resources can adapt, invest/react appropriately and capitalize from the market positioning it holds in creating cleaner water systems continually this utility-based organization remains a top contender while keeping an eye on what happens next in an ever-changing business landscape.
Changes in Investors, Rating Downgrade, and Dividend Increase for Artesian Resources Corp.
Artesian Resources Corp. has recently seen a number of changes in the positions of some large investors within the company. Hillsdale Investment Management Inc. purchased new shares worth $761,000, while Quadrature Capital Ltd added $1,302,000 to its share position during the third quarter. FCA Corp TX increased its ownership by 1.5%, now owning 73,373 shares valued at $3,531,000. Boenning & Scattergood Inc., on the other hand, acquired new shares worth $993,000 bringing its share position to 20,447. Finally, Millington Financial Advisors LLC got a new stake in the company totaling $1,147,000 in value.
Nearly half of Artesian Resources’ stock is owned by hedge funds and institutional investors. Unfortunately for shareholders who have invested in this utilities provider’s stock expecting strong returns over time, StockNews.com recently downgraded Artesian Resources from a “hold” rating to a “sell” rating following weak Q2 results that showed declining numbers compared to analysts’ consensus estimates.
Artesian Resources was founded in 1927 and is headquartered in Newark DE focusing primarily on providing water resource management services such as residential and commercial water and wastewater management alongside government and contract services.
As for earnings reports released on Tuesday May 9th; Artesian reported earnings per share of $0.39 for Q2 which failed to meet analysts’ expectations of $0.50 resulting in Shareholders receiving less than expected returns.
For dividend lovers however there comes good news as The firm announced recently an increase in quarterly dividends paid on Friday May 26th; Investors who made it through eligibility cut-off dates received boosted payouts of $0.284 per share-exceeding expectations and previous quarters reports paving way for potentially higher yields than previously projected – potentially up to dividend yield figures reaching as high as 2.29%.