H2O America (NASDAQ:HTO) Stock Rating Raised to Strong-Buy at Zacks Research

H2O America (NASDAQ:HTO) was upgraded by investment analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report released on Wednesday, Zacks reports.

Several other analysts have also commented on the company. Wall Street Zen raised H2O America from a “sell” rating to a “hold” rating in a report on Sunday, August 16th. Robert W. Baird boosted their price target on H2O America from $67.00 to $72.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 29th. Barclays dropped their price target on H2O America from $66.00 to $65.00 and set an “overweight” rating for the company in a research report on Monday, October 19th. Seaport Research Partners reaffirmed a “buy” rating and set a $67.00 target price on shares of H2O America in a research note on Wednesday, August 12th. Finally, Huntington Sec initiated coverage on H2O America in a report on Wednesday. They set a “strong-buy” rating for the company. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $64.50.

H2O America Trading Down 5.2%

HTO opened at $58.57 on Wednesday. The firm has a market cap of $2.83 billion, a price-to-earnings ratio of 22.97, a PEG ratio of 6.80 and a beta of 0.33. The stock has a fifty day moving average price of $61.17 and a 200-day moving average price of $58.77. H2O America has a 12 month low of $43.75 and a 12 month high of $67.09. The company has a current ratio of 1.90, a quick ratio of 1.67 and a debt-to-equity ratio of 0.85.

H2O America (NASDAQ:HTO) last announced its earnings results on Monday, October 26th. The utilities provider reported $1.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.06 by ($0.02). The business had revenue of $250.23 million for the quarter. H2O America had a net margin of 12.51% and a return on equity of 6.03%. As a group, equities research analysts anticipate that H2O America will post 2.93 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of H2O America in the 2nd quarter valued at approximately $431,857,000. Legal & General Group Plc acquired a new position in shares of H2O America during the 2nd quarter worth $34,792,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in shares of H2O America during the 2nd quarter worth $30,650,000. Wellington Management Group LLP grew its stake in shares of H2O America by 23.7% during the 2nd quarter. Wellington Management Group LLP now owns 1,995,839 shares of the utilities provider’s stock worth $121,287,000 after purchasing an additional 382,268 shares during the period. Finally, Resolution Capital Ltd increased its holdings in shares of H2O America by 105.8% in the 1st quarter. Resolution Capital Ltd now owns 482,460 shares of the utilities provider’s stock valued at $28,306,000 after purchasing an additional 248,005 shares in the last quarter. 84.29% of the stock is owned by hedge funds and other institutional investors.

H2O America News Summary

Here are the key news stories impacting H2O America this week:

• Positive Sentiment: Huntington Securities initiated coverage with a “Strong-Buy” rating and projected earnings of $3.10 per share for fiscal 2026, $2.87 for fiscal 2027 and $3.53 for fiscal 2028. The estimates suggest earnings growth over the longer term. Huntington Securities analyst coverage
• Positive Sentiment: H2O America priced a $325 million offering of equity units, with estimated net proceeds of approximately $315.3 million. Management may use the funds for acquisitions, capital expenditures and debt repayment, potentially supporting expansion and balance-sheet flexibility. H2O America announces pricing of equity-unit offering
• Neutral Sentiment: The equity units will provide a 7.750% annual distribution and are expected to be listed on Nasdaq, which could improve investor access and liquidity. However, the securities combine debt-like notes with future stock-purchase contracts, making the financing structure more complex.
• Negative Sentiment: The offering creates potential dilution because holders must ultimately purchase a variable number of H2O America common shares by November 2029. The associated 5.300% senior notes also increase the company’s financing obligations, which may pressure the stock despite the planned use of proceeds for growth and debt management. H2O America prices $325 million public offering

H2O America Company Profile