American Water Works (NYSE:AWK) Stock Rating Lowered by Wall Street Zen

American Water Works (NYSE:AWK) was downgraded by Wall Street Zen from a “sell” rating to a “strong sell” rating in a research note issued on Sunday.

A number of other research analysts have also commented on AWK. UBS Group upped their target price on American Water Works from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Weiss Ratings reiterated a “hold (c)” rating on shares of American Water Works in a research note on Wednesday, June 24th. Wells Fargo & Company set a $131.00 price target on shares of American Water Works in a report on Tuesday, April 21st. JPMorgan Chase & Co. increased their price objective on shares of American Water Works from $138.00 to $147.00 and gave the company a “neutral” rating in a research note on Wednesday, July 8th. Finally, Bank of America reaffirmed a “neutral” rating on shares of American Water Works in a report on Thursday, July 16th. Two equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $140.60.

American Water Works Trading Up 0.0%

Shares of AWK opened at $134.68 on Friday. American Water Works has a 12-month low of $120.57 and a 12-month high of $147.87. The company has a quick ratio of 0.34, a current ratio of 0.37 and a debt-to-equity ratio of 1.16. The firm has a market capitalization of $26.30 billion, a price-to-earnings ratio of 23.88, a P/E/G ratio of 2.72 and a beta of 0.61. The stock’s 50-day moving average price is $128.50 and its 200 day moving average price is $130.81.

American Water Works (NYSE:AWK) last posted its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.01 EPS for the quarter, missing the consensus estimate of $1.10 by ($0.09). American Water Works had a net margin of 21.17% and a return on equity of 10.20%. The firm had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period last year, the company earned $1.05 EPS. The company’s revenue was up 5.7% on a year-over-year basis. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. As a group, research analysts predict that American Water Works will post 6.09 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Salomon & Ludwin LLC lifted its holdings in shares of American Water Works by 71.7% during the fourth quarter. Salomon & Ludwin LLC now owns 194 shares of the utilities provider’s stock valued at $25,000 after acquiring an additional 81 shares during the period. Reflection Asset Management bought a new stake in shares of American Water Works in the 4th quarter worth about $25,000. Transamerica Financial Advisors LLC grew its holdings in shares of American Water Works by 82.6% in the 4th quarter. Transamerica Financial Advisors LLC now owns 199 shares of the utilities provider’s stock worth $26,000 after purchasing an additional 90 shares during the last quarter. Nemes Rush Group LLC acquired a new stake in shares of American Water Works during the 4th quarter worth about $27,000. Finally, Ascentis Independent Advisors acquired a new stake in shares of American Water Works during the 1st quarter worth about $27,000. 86.58% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about American Water Works

Here are the key news stories impacting American Water Works this week:

• Positive Sentiment: New Jersey acquisition expands the customer base: New Jersey American Water completed its purchase of Gordon’s Corner Water Company, adding approximately 15,300 customer connections and 20 employees. The company also plans about $25 million in infrastructure investments, supporting long-term rate-base growth and revenue potential. New Jersey American Water Completes Acquisition of Gordon’s Corner Water Company
• Positive Sentiment: Second-quarter earnings could provide a near-term catalyst: Analysts expect AWK’s results to reflect benefits from acquisitions, recently approved rates and infrastructure spending. Investors will also watch whether those gains offset higher operating costs, particularly after the company’s previous quarterly earnings missed consensus expectations. American Water to Report Q2 Earnings: What’s in Store for the Stock?
• Neutral Sentiment: Sustainability report highlights operational positioning: AWK released its tenth annual sustainability report, emphasizing environmental initiatives and community impact. The announcement reinforces the company’s regulatory and public-relations profile but is unlikely to materially change near-term earnings. American Water Releases Annual Sustainability Report
• Neutral Sentiment: Community grant program continues: Tennessee American Water opened applications for its 2026 firefighting-support grants. The program may strengthen local relationships, though its direct financial effect on AWK is limited. Tennessee American Water Accepting Applications for 2026 Firefighting Support Grant Program
• Negative Sentiment: Drought advisories could reduce water usage: Virginia and Maryland American Water asked customers to voluntarily cut nonessential consumption amid severe drought conditions. Lower usage may create modest volume and operational uncertainty, although regulated rates can cushion the earnings impact. Virginia American Water Drought Advisory Maryland American Water Drought Advisory
• Negative Sentiment: Analyst sentiment remains cautious: Brokerages assigned AWK an average “Hold” rating, while Wall Street Zen downgraded the stock to “Strong Sell,” adding pressure to investor sentiment. American Water Works Given Average Hold Rating Wall Street Zen Downgrades American Water Works

About American Water Works

American Water Works Company, Inc (NYSE: AWK) is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company’s operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.