American Water Works Co. Inc. (AWK) stock expected to rise by 7.73%: What’s driving the optimism?

At the time of writing, American Water Works Co. Inc. [AWK] stock is trading at $143.48, up 0.25%. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The AWK shares have gain 1.72% over the last week, with a monthly amount drifted -2.63%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

American Water Works Co. Inc. [NYSE: AWK] stock has seen the most recent analyst activity on July 31, 2024, when Wells Fargo downgraded its rating to a Underweight and also boosted its price target to $138 from $127. Previously, Evercore ISI downgraded its rating to In-line on February 16, 2024, and dropped its price target to $135. On October 03, 2023, Mizuho initiated with a Buy rating and assigned a price target of $134 on the stock. Wells Fargo upgraded its rating to a Equal Weight but stick to its price target of $140 on October 20, 2022. JP Morgan upgraded its rating to a Neutral and raised its price target to $165 on September 09, 2022. Janney upgraded its rating to Buy for this stock on June 24, 2022. In a note dated February 23, 2022, HSBC Securities upgraded an Buy rating on this stock but restated the target price of $182.

For the past year, the stock price of American Water Works Co. Inc. fluctuated between $113.34 and $149.00. Currently, Wall Street analysts expect the stock to reach $154.57 within the next 12 months. American Water Works Co. Inc. [NYSE: AWK] shares were valued at $143.48 at the most recent close of the market. An investor can expect a potential return of 7.73% based on the average AWK price forecast.

Analyzing the AWK fundamentals

According to American Water Works Co. Inc. [NYSE:AWK], the company’s sales were 4.36B for trailing twelve months, which represents an 4.74% jump. Gross Profit Margin for this corporation currently stands at 0.51% with Operating Profit Margin at 0.36%, Pretax Profit Margin comes in at 0.28%, and Net Profit Margin reading is 0.22%. To continue investigating profitability, this company’s Return on Assets is posted at 0.03, Equity is 0.1 and Total Capital is 0.05. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of1.29.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 142.25 points at the first support level, and at 141.03 for the second support level. However, for the 1st resistance point, the stock is sitting at 144.97, and for the 2nd resistance point, it is at 146.47.

Ratios To Look Out For

It is important to note that American Water Works Co. Inc. [NYSE:AWK] has a current ratio of 0.64. As well, the Quick Ratio is 0.58, while the Cash Ratio is 0.05. Considering the valuation of this stock, the price to sales ratio is 6.41, the price to book ratio is 2.75 and price to earnings (TTM) ratio is 29.27.

Transactions by insiders

Recent insider trading involved MARTHA CLARK GOSS, Director, that happened on Sep 03 ’24 when 710.0 shares were purchased. EVP, CHRO, Kennedy Melanie M completed a deal on Mar 04 ’24 to sell 843.0 shares. Meanwhile, Director Marberry Michael bought 3786.0 shares on Nov 06 ’23.

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