Zacks Investment Research lowered shares of American Water Works (NYSE:AWK) from a buy rating to a hold rating in a research report report published on Friday morning, Zacks.com reports.

According to Zacks, “Shares of American Water Works have outperformed its industry in the past 12 months. American Water Works reported mixed results in the first quarter, with earnings lagging the Zacks Consensus Estimate, while revenues beating the same. The company continues to add water and wastewater customers, as well as expand its market reach through acquisitions and organic growth. The planned capital expenditure within 2019-2023 time period for improving its water and wastewater systems will enable the company to provide efficient services to the expanding customer base. New rates are boosting the top line of the company. However, the company is subject to stringent regulations, fluctuating weather patterns and risk of accidents due to old and soiled pipelines. High debt level of the company is a headwind.”

A number of other analysts also recently weighed in on AWK. Janney Montgomery Scott restated a buy rating and issued a $121.00 price target (up from $102.00) on shares of American Water Works in a research note on Thursday, May 2nd. Boenning Scattergood restated a hold rating on shares of American Water Works in a research note on Thursday, May 2nd. Bank of America lifted their price target on American Water Works from $92.00 to $103.00 and gave the company a neutral rating in a research note on Thursday, February 21st. Finally, Wells Fargo & Co lifted their price target on American Water Works from $101.00 to $109.00 and gave the company an outperform rating in a research note on Thursday, February 21st. Four analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. American Water Works has a consensus rating of Buy and a consensus target price of $106.29.

American Water Works stock opened at $107.21 on Friday. The company has a current ratio of 0.32, a quick ratio of 0.35 and a debt-to-equity ratio of 1.28. American Water Works has a 1-year low of $77.73 and a 1-year high of $108.32. The company has a market capitalization of $19.45 billion, a P/E ratio of 32.49, a price-to-earnings-growth ratio of 3.71 and a beta of 0.25.

American Water Works (NYSE:AWK) last posted its quarterly earnings results on Wednesday, May 1st. The utilities provider reported $0.61 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.63 by ($0.02). American Water Works had a net margin of 16.44% and a return on equity of 10.25%. The business had revenue of $813.00 million during the quarter, compared to analysts’ expectations of $792.73 million. During the same quarter last year, the firm earned $0.59 earnings per share. The firm’s quarterly revenue was up 6.8% compared to the same quarter last year. On average, equities analysts anticipate that American Water Works will post 3.58 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 4th. Shareholders of record on Monday, May 13th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 1.87%. This is an increase from American Water Works’s previous quarterly dividend of $0.46. The ex-dividend date of this dividend is Friday, May 10th. American Water Works’s payout ratio is presently 55.15%.

Institutional investors and hedge funds have recently bought and sold shares of the business. Larson Financial Group LLC purchased a new stake in American Water Works during the fourth quarter worth $28,000. Ruggie Capital Group purchased a new stake in American Water Works during the fourth quarter worth $31,000. Capital Financial Planning LLC purchased a new stake in American Water Works during the fourth quarter worth $31,000. Financial Gravity Companies Inc. acquired a new position in shares of American Water Works in the fourth quarter worth $32,000. Finally, JNBA Financial Advisors acquired a new position in shares of American Water Works in the fourth quarter worth $32,000. Institutional investors own 85.39% of the company’s stock.

About American Water Works

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States and Canada. It offers water and wastewater services to approximately 1,600 communities in 16 states serving approximately 3.4 million active customers. The company serves residential customers; commercial customers, such as 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; and other utilities and community water and wastewater systems.

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