Zacks Research Research Analysts Reduce Earnings Estimates for American Water Works Company, Inc. (NYSE:AWK)

American Water Works Company, Inc. (NYSE:AWK) – Research analysts at Zacks Research lowered their Q2 2025 EPS estimates for American Water Works in a report released on Wednesday, May 22nd. Zacks Research analyst J. Saha now expects that the utilities provider will post earnings per share of $1.54 for the quarter, down from their previous forecast of $1.58. The consensus estimate for American Water Works’ current full-year earnings is $5.24 per share. Zacks Research also issued estimates for American Water Works’ Q4 2025 earnings at $1.13 EPS and FY2025 earnings at $5.66 EPS.

A number of other brokerages have also issued reports on AWK. StockNews.com lowered shares of American Water Works from a “hold” rating to a “sell” rating in a research report on Wednesday, April 3rd. Evercore ISI lowered shares of American Water Works from an “outperform” rating to an “in-line” rating and lowered their price objective for the company from $160.00 to $135.00 in a research report on Friday, February 16th. Finally, UBS Group raised their target price on American Water Works from $124.00 to $139.00 and gave the company a “neutral” rating in a report on Monday, May 13th. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $141.33.

American Water Works Stock Performance

Shares of AWK opened at $128.28 on Friday. The company has a current ratio of 0.85, a quick ratio of 0.79 and a debt-to-equity ratio of 1.26. The firm has a market cap of $24.99 billion, a PE ratio of 26.02, a price-to-earnings-growth ratio of 3.19 and a beta of 0.62. The company’s 50 day simple moving average is $123.66 and its 200-day simple moving average is $125.75. American Water Works has a 12-month low of $113.34 and a 12-month high of $151.22.

American Water Works (NYSE:AWK) last announced its quarterly earnings results on Thursday, May 2nd. The utilities provider reported $0.95 EPS for the quarter, missing the consensus estimate of $0.98 by ($0.03). The company had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $962.30 million. American Water Works had a net margin of 22.27% and a return on equity of 9.74%. The business’s revenue for the quarter was up 7.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.91 earnings per share.

American Water Works Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 3rd. Shareholders of record on Tuesday, May 14th will be given a $0.765 dividend. This represents a $3.06 dividend on an annualized basis and a dividend yield of 2.39%. This is a positive change from American Water Works’s previous quarterly dividend of $0.71. The ex-dividend date is Monday, May 13th. American Water Works’s dividend payout ratio is presently 62.07%.

Insider Activity at American Water Works

In related news, EVP Melanie M. Kennedy sold 843 shares of the company’s stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $119.59, for a total transaction of $100,814.37. Following the sale, the executive vice president now directly owns 16,240 shares of the company’s stock, valued at approximately $1,942,141.60. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. MV Capital Management Inc. grew its stake in American Water Works by 110.8% during the 4th quarter. MV Capital Management Inc. now owns 196 shares of the utilities provider’s stock worth $26,000 after buying an additional 103 shares during the last quarter. Ables Iannone Moore & Associates Inc. bought a new position in American Water Works during the 4th quarter worth $26,000. ORG Partners LLC grew its stake in American Water Works by 79.2% during the 4th quarter. ORG Partners LLC now owns 233 shares of the utilities provider’s stock worth $31,000 after buying an additional 103 shares during the last quarter. Tortoise Investment Management LLC grew its stake in shares of American Water Works by 71.9% in the fourth quarter. Tortoise Investment Management LLC now owns 239 shares of the utilities provider’s stock worth $32,000 after purchasing an additional 100 shares in the last quarter. Finally, Farmers & Merchants Investments Inc. grew its stake in shares of American Water Works by 100.0% in the first quarter. Farmers & Merchants Investments Inc. now owns 254 shares of the utilities provider’s stock worth $31,000 after purchasing an additional 127 shares in the last quarter. 86.58% of the stock is currently owned by institutional investors.

American Water Works Company Profile

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including 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, such as schools and universities; and other utilities and community water and wastewater systems.