September 22, 2024: Monthly Stock Report on American Water Works Company, Inc. (AWK)

Company Overview

American Water Works Company, Inc. (AWK), based in Camden, New Jersey, is a leading player in the regulated water utilities industry, providing essential water and wastewater services to about 1,700 communities across 14 states, catering to roughly 3.5 million customers from various sectors, including residential and governmental. Founded in 1886, AWK operates numerous treatment plants, wells, and pumping stations to ensure the reliability of its services. The company’s total revenue stands at approximately $4.36 billion, reflecting sustainable financial health bolstered by consistent demand for vital water resources. Given its strong fundamentals and attractive growth potential in the regulated water utility sector, a ‘buy’ recommendation is warranted, with a target high price of $164.00.

Market Performance and Analyst Insights

Currently, American Water Works’ stock is priced at $147.23, falling short of the projected high price of $164.00, while the mean target price stands at $144.99. This indicates a potential upside for investors, as the market shows confidence in its ability to generate returns amidst fluctuating market conditions. The stock has a total of 194,863,008 shares outstanding, with only 3,889,469 shares shorted, indicating a low bearish sentiment, reflected in a short percent of float at approximately 2.28%. The consensus among analysts is positive, with a recommendation mean score of 2.5, garnering a ‘buy’ sentiment from nine analysts.

The stock’s recent performance is promising, closely aligning with its fifty-day moving average of $143.1964. Over the past year, AWK’s stock peaked at $150.68, showcasing resilience with fluctuations ranging from a low of $113.34. Presently, it is approximately 2.9% below this annual high but 29.9% above its low, suggesting robust market interest and poised opportunities for prospective investors.

Conclusion

In summary, American Water Works Company, Inc. stands as a strong investment option in the water utilities segment, underpinned by its stable revenue, low short interest, and favorable analyst recommendations. As the company navigates its regulatory landscape, investors can derive confidence from its current market position and long-term growth prospects. Taking into account all relevant financial metrics and market analyses, the stock presents lucrative opportunities for both short-term and long-term investors.

Metric	Value
Market Cap	$28.7b
Total Debt	$13.2b
Total Cash	$124.0m
Shares Outstanding	194.9m
Float Shares	194.5m