American Water Works Co. Inc. (NYSE: AWK)’s stock price has dropped by -1.62 in relation to previous closing price of 142.40. Nevertheless, the company has seen a loss of -0.88% in its stock price over the last five trading days. zacks.com reported 2024-07-24 that Investors interested in Utility – Water Supply stocks are likely familiar with Veolia Environnement SA (VEOEY) and American Water Works (AWK). But which of these two stocks offers value investors a better bang for their buck right now?
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 28.49x, Company’s 36-month beta value is 0.65.Analysts have differing opinions on the stock, with 3 analysts rating it as a “buy,” 3 as “overweight,” 9 as “hold,” and 0 as “sell.”
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The public float for AWK is 194.38M, and currently, short sellers hold a 2.00% ratio of that floaft. The average trading volume of AWK on July 26, 2024 was 1.13M shares.
AWK’s Market Performance
AWK stock saw an increase of -0.88% in the past week, with a monthly gain of 8.29% and a quarterly increase of 15.44%. The volatility ratio for the week is 1.81%, and the volatility levels for the last 30 days are 1.92% for American Water Works Co. Inc. (AWK). The simple moving average for the past 20 days is 3.95% for AWK’s stock, with a 10.98% 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 5.99% 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 -7.35% of loss for the given period.
Volatility was left at 1.92%, however, over the last 30 days, the volatility rate increased by 1.81%, as shares surge +8.12% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +4.72% upper at present.
During the last 5 trading sessions, AWK fell by -0.88%, which changed the moving average for the period of 200-days by +17.88% in comparison to the 20-day moving average, which settled at $135.30. In addition, American Water Works Co. Inc. saw 6.14% in overturn over a single year, with a tendency to cut further gains.
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
- 0.55 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 9.81, with 3.23 for asset returns.
Based on American Water Works Co. Inc. (AWK), the company’s capital structure generated 0.57 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 1.31. 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 5.3. When we switch over and look at the enterprise to sales, we see a ratio of 9.26. The receivables turnover for the company is 6.47for 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 0.85.
Conclusion
In a nutshell, American Water Works Co. Inc. (AWK) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
