Zacks Research Issues Pessimistic Forecast for AWK Earnings

American Water Works Company, Inc. (NYSE:AWK) – Zacks Research reduced their Q2 2026 earnings per share estimates for shares of American Water Works in a report released on Tuesday, September 9th. Zacks Research analyst Team now anticipates that the utilities provider will earn $1.62 per share for the quarter, down from their previous estimate of $1.68. The consensus estimate for American Water Works’ current full-year earnings is $5.71 per share. Zacks Research also issued estimates for American Water Works’ Q4 2026 earnings at $1.33 EPS, FY2026 earnings at $6.14 EPS and Q2 2027 earnings at $1.66 EPS.

American Water Works (NYSE:AWK) last issued its earnings results on Wednesday, July 30th. The utilities provider reported $1.48 earnings per share for the quarter, missing the consensus estimate of $1.53 by ($0.05). American Water Works had a return on equity of 10.34% and a net margin of 21.91%.The company had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.22 billion. During the same period in the prior year, the business earned $1.42 earnings per share. American Water Works’s quarterly revenue was up 11.1% on a year-over-year basis. American Water Works has set its FY 2025 guidance at 5.700-5.750 EPS.

A number of other research analysts have also commented on AWK. UBS Group lowered their price target on American Water Works from $156.00 to $151.00 and set a “neutral” rating on the stock in a report on Tuesday, August 12th. Mizuho raised their target price on American Water Works from $148.00 to $149.00 and gave the company a “neutral” rating in a research note on Friday, August 1st. Barclays decreased their target price on American Water Works from $138.00 to $128.00 and set an “underweight” rating for the company in a research note on Thursday, July 10th. Argus raised their target price on American Water Works from $155.00 to $160.00 and gave the company a “buy” rating in a research note on Thursday, August 14th. Finally, Wells Fargo & Company decreased their target price on American Water Works from $147.00 to $141.00 and set an “equal weight” rating for the company in a research note on Friday, August 1st. Two analysts have rated the stock with a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average price target of $143.30.

American Water Works Price Performance

Shares of NYSE AWK opened at $139.72 on Thursday. American Water Works has a 1-year low of $118.74 and a 1-year high of $155.50. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.35 and a quick ratio of 0.32. The business’s fifty day moving average price is $142.53 and its two-hundred day moving average price is $142.61. The firm has a market capitalization of $27.26 billion, a PE ratio of 25.17, a P/E/G ratio of 3.28 and a beta of 0.69.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of AWK. PFG Advisors boosted its position in American Water Works by 33.4% during the first quarter. PFG Advisors now owns 9,699 shares of the utilities provider’s stock valued at $1,431,000 after purchasing an additional 2,429 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in American Water Works by 2.1% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 124,352 shares of the utilities provider’s stock valued at $18,344,000 after purchasing an additional 2,570 shares during the last quarter. Brown Advisory Inc. boosted its position in American Water Works by 2.2% during the first quarter. Brown Advisory Inc. now owns 10,547 shares of the utilities provider’s stock valued at $1,556,000 after purchasing an additional 229 shares during the last quarter. Farther Finance Advisors LLC boosted its position in American Water Works by 45.2% during the first quarter. Farther Finance Advisors LLC now owns 2,326 shares of the utilities provider’s stock valued at $342,000 after purchasing an additional 724 shares during the last quarter. Finally, Oppenheimer & Co. Inc. boosted its position in American Water Works by 21.5% during the first quarter. Oppenheimer & Co. Inc. now owns 7,692 shares of the utilities provider’s stock valued at $1,135,000 after purchasing an additional 1,359 shares during the last quarter. 86.58% of the stock is owned by institutional investors and hedge funds.

American Water Works Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 3rd. Shareholders of record on Tuesday, August 12th were paid a $0.8275 dividend. This represents a $3.31 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Tuesday, August 12th. American Water Works’s payout ratio is presently 59.64%.

About American Water Works

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.