Mizuho has recently reduced American Water Works Company Inc (AWK) stock to Neutral rating, as announced on October 15, 2024, according to Finviz. Earlier, on October 7, 2024, Jefferies had initiated the stock to Underperform, setting a price target of $124. BofA Securities also resumed Underperform rating with a price target of $140. Additionally, Wells Fargo reduced Underweight rating on July 31, 2024, with a target price of $138. Evercore ISI analysts, in their report published on February 16, 2024, also reduced rating and set a price target of $160 for American Water Works Company Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
American Water Works Company Inc (AWK) Stock Trading Recap
On Tuesday, American Water Works Company Inc (AWK) stock saw a decline, ending the day at $140.75 which represents a decrease of $-0.30 or -0.21% from the prior close of $141.05. The stock opened at $139.6 and touched a low of $138.93 during the day, reaching a high of $140.99. The volume of shares traded was 0.89 million falling short of the average volume of 0.94 million.
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AWK Stock Performance and Moving Averages
In recent trading, American Water Works Company Inc (AWK) stock price has shown some volatility, fluctuating -0.32% over the last five trades and -4.60% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 17.42%, and it has plunged by -1.16% in the previous three months. Currently, AWK is trading at -0.59%, -1.70%, and 7.16% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AWK, a Utilities sector stock, is trading -6.59% below its 52-week high but remains 24.18% above its 52-week low. The Average True Range (ATR) (14 days) of 2.47 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
American Water Works Company Inc’s Profitability and Valuation Ratios
American Water Works Company Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 35.58% and a profit margin of 21.93%, with a gross margin of 17.42%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, American Water Works Company Inc’s market capitalization stands at $27.43 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 28.71, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 24.79. Additionally, the Price-to-Sales Ratio is 6.29, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 2.7, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.19% of American Water Works Company Inc (AWK)’s shares, while financial institutions hold 90.71%.
Notable insider trades include GOSS MARTHA CLARK, Director at American Water Works Company Inc (AWK), who sold 710 shares on Sep 03 ’24, at $142.85 each, totaling $0.10 million. On Mar 04 ’24, Kennedy Melanie M, EVP, CHRO, sold 843 shares for $119.59 each, amounting to $0.10 million.
