Zacks Investment Research lowered shares of American Water Works (NYSE:AWK) from a hold rating to a sell rating in a report released on Friday.

According to Zacks, “American Water Works is subject to stringent regulations, fluctuating weather patterns and risk of accidents due to old and soiled pipelines. High debt level is a headwind. In last six months American Water Works have gained marginally higher than the industry.  American Water Works continues to add customers and expand its market reach through acquisitions and organic growth. Year to date, the water utility has added 22,000 customers through closed acquisitions and organic growth. Thanks to its ongoing capital expenditure we expect the company to improve its water and wastewater systems, providing efficient services to its expanding customer base.”

A number of other equities analysts have also weighed in on the company. BidaskClub lowered American Water Works from a buy rating to a hold rating in a research note on Friday, June 30th. Boenning Scattergood reiterated a hold rating on shares of American Water Works in a research note on Friday, September 22nd. Robert W. Baird reiterated a hold rating and set a $82.00 target price on shares of American Water Works in a research note on Sunday, October 1st. Finally, Wells Fargo & Company set a $89.00 target price on American Water Works and gave the stock a hold rating in a research note on Thursday. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and three have given a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus price target of $83.63.

Shares of American Water Works (NYSE AWK) opened at 87.76 on Friday. American Water Works has a one year low of $69.41 and a one year high of $87.87. The stock’s 50 day moving average price is $82.90 and its 200 day moving average price is $80.28. The firm has a market cap of $15.65 billion, a price-to-earnings ratio of 33.13 and a beta of 0.25.

American Water Works (NYSE:AWK) last announced its earnings results on Wednesday, August 2nd. The utilities provider reported $0.73 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.80 by ($0.07). The firm had revenue of $844.00 million for the quarter, compared to the consensus estimate of $869.52 million. American Water Works had a return on equity of 9.70% and a net margin of 14.20%. American Water Works’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same quarter last year, the business posted $0.77 EPS. On average, equities analysts anticipate that American Water Works will post $3.00 earnings per share for the current fiscal year.

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In other American Water Works news, COO Walter Lynch sold 3,335 shares of the firm’s stock in a transaction on Monday, August 28th. The stock was sold at an average price of $82.05, for a total transaction of $273,636.75. Following the transaction, the chief operating officer now owns 94,702 shares in the company, valued at approximately $7,770,299.10. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. 0.34% of the stock is owned by company insiders.

Institutional investors have recently bought and sold shares of the business. Cornerstone Advisors Inc. increased its stake in American Water Works by 349.5% during the 2nd quarter. Cornerstone Advisors Inc. now owns 1,344 shares of the utilities provider’s stock worth $105,000 after acquiring an additional 1,045 shares during the period. Pinebridge Investments L.P. bought a new position in American Water Works during the 2nd quarter worth $118,000. Peddock Capital Advisors LLC bought a new position in American Water Works during the 2nd quarter worth $131,000. Aviance Capital Management LLC bought a new position in American Water Works during the 2nd quarter worth $147,000. Finally, Almanack Investment Partners LLC. bought a new position in American Water Works during the 2nd quarter worth $154,000. Hedge funds and other institutional investors own 79.63% of the company’s stock.

About American Water Works

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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