Norges Bank Invests $337 Million in American Water Works Company, Inc. $AWK

Norges Bank purchased a new position in American Water Works Company, Inc. (NYSE:AWK) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 2,582,403 shares of the utilities provider’s stock, valued at approximately $337,004,000.

Several other hedge funds have also recently modified their holdings of the business. Oppenheimer Asset Management Inc. raised its stake in shares of American Water Works by 2.0% in the third quarter. Oppenheimer Asset Management Inc. now owns 3,856 shares of the utilities provider’s stock worth $537,000 after purchasing an additional 77 shares during the last quarter. SeaCrest Wealth Management LLC increased its position in American Water Works by 3.5% during the fourth quarter. SeaCrest Wealth Management LLC now owns 2,269 shares of the utilities provider’s stock valued at $289,000 after acquiring an additional 77 shares during the last quarter. Peddock Capital Advisors LLC increased its position in American Water Works by 2.9% during the fourth quarter. Peddock Capital Advisors LLC now owns 2,824 shares of the utilities provider’s stock valued at $369,000 after acquiring an additional 79 shares during the last quarter. Salomon & Ludwin LLC increased its position in 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 last quarter. Finally, Faithward Advisors LLC increased its position in American Water Works by 5.4% during the third quarter. Faithward Advisors LLC now owns 1,602 shares of the utilities provider’s stock valued at $223,000 after acquiring an additional 82 shares during the last quarter. Hedge funds and other institutional investors own 86.58% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on AWK. Barclays upped their price objective on American Water Works from $122.00 to $124.00 and gave the company an “underweight” rating in a research report on Monday, April 20th. Bank of America reduced their price objective on American Water Works from $147.00 to $134.00 and set a “neutral” rating for the company in a research report on Thursday, May 21st. UBS Group upgraded American Water Works from a “neutral” rating to a “buy” rating and upped their price objective for the company from $137.00 to $140.00 in a research report on Friday. Wells Fargo & Company set a $131.00 price objective on American Water Works in a research report on Tuesday, April 21st. Finally, Truist Financial reduced their price objective on American Water Works from $137.00 to $130.00 and set a “hold” rating for the company in a research report on Friday. Two investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $138.11.

American Water Works Stock Performance

Shares of AWK opened at $120.99 on Tuesday. 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 business has a 50-day simple moving average of $130.64 and a two-hundred day simple moving average of $131.04. The stock has a market cap of $23.63 billion, a price-to-earnings ratio of 21.45, a PEG ratio of 2.67 and a beta of 0.62. American Water Works Company, Inc. has a 52 week low of $120.61 and a 52 week high of $147.87.

American Water Works (NYSE:AWK) last issued its quarterly earnings results on Wednesday, April 29th. The utilities provider reported $1.01 EPS for the quarter, missing analysts’ consensus estimates of $1.10 by ($0.09). The company had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.17 billion. American Water Works had a return on equity of 10.20% and a net margin of 21.17%.The business’s quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.05 EPS. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. On average, analysts expect that American Water Works Company, Inc. will post 6.09 EPS for the current year.

American Water Works Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 12th will be given a $0.895 dividend. The ex-dividend date is Tuesday, May 12th. This is a positive change from American Water Works’s previous quarterly dividend of $0.83. This represents a $3.58 dividend on an annualized basis and a yield of 3.0%. American Water Works’s dividend payout ratio (DPR) is currently 63.48%.

Key Headlines Impacting American Water Works

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

• Positive Sentiment: American Water completed a $315 million acquisition of Nexus Water Group systems in eight states, expanding its regulated footprint and adding long-term rate-base growth potential. American Water Completes Purchase of Nexus Water Group Systems in Eight States
• Positive Sentiment: Several subsidiary acquisitions were completed on June 1, including systems in New Jersey, Virginia, Pennsylvania, Kentucky, Tennessee, Indiana, and Illinois, which should support customer and regulated asset growth. New Jersey American Water Completes Purchase of Montague Sewer & Water Company’s Utility Systems
• Neutral Sentiment: MarketWatch noted that AWK underperformed peers during Monday trading, suggesting investors are not fully rewarding the acquisition news yet. American Water Works Co. stock underperforms Monday when compared to competitors
• Negative Sentiment: The stock’s weakness may also reflect investor caution around the size of the acquisition and its near-term capital spending needs, even though the assets are regulated.

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.