American Water Works Co. Inc (AWK)’s Pretax Margin and Net Margin Explained

At the time of writing, American Water Works Co. Inc [AWK] stock is trading at $128.67, up 0.63%. One of the good ways to gauge the recent performance is if the stock’s short-term value is rising or falling. The AWK shares have gain 2.92% over the last week, with a monthly amount glided 1.85%, and seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

American Water Works Co. Inc [NYSE: AWK] stock has seen the most recent analyst activity on January 07, 2025, when Wells Fargo upgraded its rating to a Equal Weight and also revised its price target to $129 from $133. Previously, UBS upgraded its rating to Buy on November 19, 2024, and elevated its price target to $155. On October 15, 2024, downgrade downgraded it’s rating to Neutral and revised its price target to $140 on the stock. Jefferies started tracking the stock assigning a Underperform rating and suggested a price target of $124 on October 07, 2024. Wells Fargo downgraded its rating to Underweight for this stock on July 31, 2024, and upped its price target to $138. In a note dated February 16, 2024, Evercore ISI downgraded an In-line rating on this stock and revised its target price from $160 to $135.

For the past year, the stock price of American Water Works Co. Inc fluctuated between $113.34 and $150.68. Currently, Wall Street analysts expect the stock to reach $139.75 within the next 12 months. American Water Works Co. Inc [NYSE: AWK] shares were valued at $128.67 at the most recent close of the market. An investor can expect a potential return of 8.61% 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 4.51B for trailing twelve months, which represents an 13.37% jump. Gross Profit Margin for this corporation currently stands at 0.52% with Operating Profit Margin at 0.37%, Pretax Profit Margin comes in at 0.29%, 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 0.06. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of1.37.

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 126.25 points at the first support level, and at 123.83 for the second support level. However, for the 1st resistance point, the stock is sitting at 131.45, and for the 2nd resistance point, it is at 134.23.

Ratios To Look Out For

It is important to note that American Water Works Co. Inc [NYSE:AWK] has a current ratio of 0.58. Also, the Quick Ratio is 0.53, while the Cash Ratio stands at 0.03. Considering the valuation of this stock, the price to sales ratio is 5.55, the price to book ratio is 2.42 and price to earnings (TTM) ratio is 25.52.

Transactions by insiders

Recent insider trading involved Norton Cheryl, EVP and COO, that happened on Nov 22 ’24 when 4647.0 shares were sold. Officer, Norton Cheryl completed a deal on Nov 22 ’24 to buy 4647.0 shares. Meanwhile, Director GOSS MARTHA CLARK sold 710.0 shares on Sep 03 ’24.

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