American Water Works (NYSE:AWK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.

According to Zacks, “In the last one month, American Water Works stock has lost more than the industry it belongs to. American Water Works is subject to stringent regulations, fluctuating weather patterns and risk of accidents due to old and soiled pipelines. The company’s crew are alert, even then the current subzero temperature could result in main break and disrupt operations. High debt level is a headwind. The company continues to add customers and expand its market reach through acquisitions and organic growth. Year to date, the water utility has added 48,400 customers through closed acquisitions and organic growth and will add another 21,700 customers when the pending acquisitions are completed. The planned capital expenditure to improve its water and wastewater systems, will enable the company to provide efficient services to its expanding customer base. “

Other equities analysts have also recently issued reports about the stock. Robert W. Baird reissued a “hold” rating and issued a $82.00 price objective on shares of American Water Works in a research report on Sunday, October 1st. Boenning Scattergood reissued a “hold” rating on shares of American Water Works in a research report on Friday, September 22nd. Bank of America assumed coverage on shares of American Water Works in a research report on Tuesday, October 24th. They issued a “buy” rating and a $95.00 price objective for the company. Guggenheim cut shares of American Water Works from a “buy” rating to a “neutral” rating in a research report on Tuesday, January 2nd. Finally, Argus upped their price objective on shares of American Water Works from $100.00 to $105.00 and gave the company a “buy” rating in a research report on Friday, December 29th. One research analyst has rated the stock with a sell rating, eleven have assigned a hold rating and two have issued a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $90.01.

Shares of American Water Works (NYSE AWK) traded down $1.01 during trading on Tuesday, reaching $85.70. 828,900 shares of the company were exchanged, compared to its average volume of 1,019,686. The company has a current ratio of 0.49, a quick ratio of 0.47 and a debt-to-equity ratio of 1.21. American Water Works has a 12-month low of $69.96 and a 12-month high of $92.37. The stock has a market cap of $15,060.00, a PE ratio of 29.05, a price-to-earnings-growth ratio of 3.55 and a beta of 0.27.

American Water Works (NYSE:AWK) last announced its quarterly earnings results on Wednesday, November 1st. The utilities provider reported $1.08 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.08. American Water Works had a net margin of 15.82% and a return on equity of 9.69%. The firm had revenue of $936.00 million during the quarter, compared to analysts’ expectations of $992.58 million. During the same period in the prior year, the company earned $1.05 EPS. The firm’s revenue was up .6% on a year-over-year basis. analysts predict that American Water Works will post 3.01 earnings per share for the current year.

In other news, EVP Michael A. Sgro sold 841 shares of the company’s stock in a transaction dated Tuesday, November 7th. The shares were sold at an average price of $90.03, for a total value of $75,715.23. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Deborah A. Degillio sold 822 shares of the company’s stock in a transaction dated Wednesday, November 8th. The shares were sold at an average price of $89.75, for a total transaction of $73,774.50. Following the completion of the sale, the insider now owns 3,659 shares in the company, valued at approximately $328,395.25. The disclosure for this sale can be found here. Over the last three months, insiders sold 6,856 shares of company stock valued at $616,700. 0.34% of the stock is currently owned by corporate insiders.

Institutional investors have recently modified their holdings of the company. Pinebridge Investments L.P. acquired a new stake in shares of American Water Works in the 2nd quarter valued at about $118,000. Aviance Capital Management LLC acquired a new stake in shares of American Water Works in the 2nd quarter valued at about $147,000. Northwestern Mutual Wealth Management Co. raised its stake in shares of American Water Works by 8.8% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,441 shares of the utilities provider’s stock valued at $190,000 after purchasing an additional 197 shares in the last quarter. Evercore Wealth Management LLC raised its stake in shares of American Water Works by 8.2% in the 2nd quarter. Evercore Wealth Management LLC now owns 2,500 shares of the utilities provider’s stock valued at $195,000 after purchasing an additional 189 shares in the last quarter. Finally, Edgewood Management LLC acquired a new stake in shares of American Water Works in the 3rd quarter valued at about $202,000. Institutional investors and hedge funds own 80.79% of the company’s stock.

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American Water Works Company Profile

American Water Works Company, Inc is a holding company for regulated and market-based subsidiaries throughout the United States and Ontario, Canada. The Company’s Regulated Businesses segment provides water and wastewater services as public utilities in 16 states in the United States as of December 31, 2016.

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Analyst Recommendations for American Water Works (NYSE:AWK)

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