American States Water Co. (NYSE:AWR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “American States Water Company’s major drawback is its dependence on a single state, California, for the majority of its earnings. Plus its highly regulated operations, ongoing drought conditions in the state and risk of water contamination leading to increase in operating costs could adversely impact results. Due to the aforesaid headwinds annual estimates have been going down ahead of the company’s Q3 earnings release. The strength of the company lies in an expanding customer base, extensive water rights and strong credit ratings. The company is yet to expand its customer base as aggressively as some of its peers, who are resorting to inorganic means. This California focused water utility has the opportunity to spread operations via acquisitions.”
Several other research analysts also recently commented on the stock. Barclays PLC dropped their target price on shares of American States Water from $44.00 to $39.00 and set an “underweight” rating on the stock in a report on Tuesday, September 6th. Janney Montgomery Scott upgraded shares of American States Water from a “sell” rating to a “neutral” rating and boosted their price objective for the stock from $35.00 to $39.00 in a report on Friday, August 5th.
Shares of American States Water (NYSE:AWR) opened at 38.26 on Tuesday. The firm has a market cap of $1.40 billion, a price-to-earnings ratio of 23.78 and a beta of 0.35. The firm has a 50 day moving average of $39.69 and a 200 day moving average of $40.73. American States Water has a 52 week low of $37.28 and a 52 week high of $47.24.
American States Water (NYSE:AWR) last announced its earnings results on Wednesday, August 3rd. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.44 by $0.01. The firm had revenue of $111.95 million for the quarter, compared to the consensus estimate of $113.01 million. American States Water had a net margin of 13.28% and a return on equity of 12.76%. The business’s quarterly revenue was down 2.3% on a year-over-year basis. During the same quarter last year, the firm posted $0.41 EPS. Equities analysts predict that American States Water will post $1.63 earnings per share for the current fiscal year.
In other news, Director Anne M. Holloway sold 986 shares of American States Water stock in a transaction dated Wednesday, August 24th. The shares were sold at an average price of $40.01, for a total transaction of $39,449.86. Following the sale, the director now directly owns 41,583 shares in the company, valued at approximately $1,663,735.83. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Lloyd E. Ross sold 1,000 shares of American States Water stock in a transaction dated Thursday, September 1st. The shares were sold at an average price of $38.71, for a total transaction of $38,710.00. Following the sale, the director now owns 54,254 shares in the company, valued at $2,100,172.34. The disclosure for this sale can be found here. Insiders own 1.43% of the company’s stock.
Several hedge funds have recently modified their holdings of AWR. Victory Capital Management Inc. raised its position in American States Water by 77.0% in the second quarter. Victory Capital Management Inc. now owns 2,511 shares of the company’s stock worth $110,000 after buying an additional 1,092 shares during the period. Tower Research Capital LLC TRC purchased a new position in American States Water during the second quarter worth approximately $114,000. Advisor Group Inc. purchased a new position in American States Water during the second quarter worth approximately $152,000. PineBridge Investments L.P. raised its position in American States Water by 3.9% in the second quarter. PineBridge Investments L.P. now owns 4,636 shares of the company’s stock worth $204,000 after buying an additional 174 shares during the period. Finally, GW Henssler & Associates Ltd. purchased a new position in American States Water during the second quarter worth approximately $206,000. Institutional investors and hedge funds own 63.65% of the company’s stock.
American States Water Company Profile
American States Water Company (AWR) is a holding company. The Company is the parent company of Golden State Water Company (GSWC) and American States Utility Services, Inc (ASUS), as well as various subsidiaries of ASUS. The Company’s segments include water, electric and contracted services. Within the segments, AWR has two principal business units, water and electric service utility operations, conducted through GSWC, and contracted services conducted through ASUS and its subsidiaries.
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