American Water Works Co. Inc. (NYSE: AWK)’s stock price has gone rise by 1.52 in comparison to its previous close of 120.02, however, the company has experienced a 1.92% increase in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-09 that American Water Works (AWK) makes a strong case for investment in the utility space, given its growth prospects, strong dividends and systematic long-term capital expenditure plan.
Is It Worth Investing in American Water Works Co. Inc. (NYSE: AWK) Right Now?
The price-to-earnings ratio for American Water Works Co. Inc. (NYSE: AWK) is above average at 24.95x. The 36-month beta value for AWK is also noteworthy at 0.63. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 3 rating it as “overweight,” 9 rating it as “hold,” and 0 rating it as “sell.”
The public float for AWK is 194.36M, and at present, short sellers hold a 1.37% of that float. The average trading volume of AWK on April 10, 2024 was 1.46M shares.
AWK’s Market Performance
AWK’s stock has seen a 1.92% increase for the week, with a 2.88% rise in the past month and a -8.41% fall in the past quarter. The volatility ratio for the week is 1.56%, and the volatility levels for the past 30 days are at 1.82% for American Water Works Co. Inc. . The simple moving average for the past 20 days is 2.34% for AWK’s stock, with a -6.27% simple moving average for the past 200 days.
Analysts’ Opinion of AWK
Many brokerage firms have already submitted their reports for AWK stocks, with Evercore ISI repeating the rating for AWK by listing it as a “In-line.” The predicted price for AWK in the upcoming period, according to Evercore ISI is $135 based on the research report published on February 16, 2024 of the current year 2024.
Mizuho, on the other hand, stated in their research note that they expect to see AWK reach a price target of $134. The rating they have provided for AWK stocks is “Buy” according to the report published on October 03rd, 2023.
Wells Fargo gave a rating of “Equal Weight” to AWK, setting the target price at $140 in the report published on October 20th of the previous year.
AWK Trading at 1.21% from the 50-Day Moving Average
After a stumble in the market that brought AWK to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -20.58% of loss for the given period.
Volatility was left at 1.82%, however, over the last 30 days, the volatility rate increased by 1.56%, as shares surge +1.26% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.06% lower at present.
During the last 5 trading sessions, AWK rose by +1.92%, which changed the moving average for the period of 200-days by -17.95% in comparison to the 20-day moving average, which settled at $119.14. In addition, American Water Works Co. Inc. saw -7.68% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AWK starting from Kennedy Melanie M, who sale 843 shares at the price of $119.59 back on Mar 04 ’24. After this action, Kennedy Melanie M now owns 16,240 shares of American Water Works Co. Inc., valued at $100,814 using the latest closing price.
Marberry Michael, the Director of American Water Works Co. Inc., purchase 3,786 shares at $130.20 during a trade that took place back on Nov 06 ’23, which means that Marberry Michael is holding 7,459 shares at $492,937 based on the most recent closing price.
Stock Fundamentals for AWK
Current profitability levels for the company are sitting at:
- 0.36 for the present operating margin
- 0.59 for the gross margin
The net margin for American Water Works Co. Inc. stands at 0.22. The total capital return value is set at 0.05. Equity return is now at value 10.79, with 3.16 for asset returns.
Based on American Water Works Co. Inc. (AWK), the company’s capital structure generated 0.56 points at debt to capital in total, while cash flow to debt ratio is standing at 0.15. The debt to equity ratio resting at 1.27. The interest coverage ratio of the stock is 3.27.
Currently, EBITDA for the company is 2.36 billion with net debt to EBITDA at 5.13. When we switch over and look at the enterprise to sales, we see a ratio of 8.47. The receivables turnover for the company is 5.82for trailing twelve months and the total asset turnover is 0.14. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.65.
Conclusion
In summary, American Water Works Co. Inc. (AWK) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
