Zacks Investment Research Downgrades American States Water Co. (AWR) to Sell
American States Water Co. (NYSE:AWR) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors 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 equities research analysts have also recently commented on AWR. Barclays PLC lowered their price target on American States Water from $44.00 to $39.00 and set an “underweight” rating for the company in a research note on Tuesday, September 6th. Janney Montgomery Scott raised American States Water from a “sell” rating to a “neutral” rating and boosted their price target for the company from $35.00 to $39.00 in a research note on Friday, August 5th.
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Shares of American States Water (NYSE:AWR) opened at 37.62 on Tuesday. The stock has a market cap of $1.38 billion, a price-to-earnings ratio of 23.38 and a beta of 0.35. The stock’s 50 day moving average is $39.50 and its 200-day moving average is $40.70. American States Water has a 1-year low of $37.28 and a 1-year high of $47.24.
American States Water (NYSE:AWR) last announced its quarterly earnings results on Wednesday, August 3rd. The company reported $0.45 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.44 by $0.01. The business earned $111.95 million during the quarter, compared to analysts’ expectations of $113.01 million. American States Water had a return on equity of 12.76% and a net margin of 13.28%. The firm’s quarterly revenue was down 2.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.41 EPS. On average, analysts anticipate that American States Water will post $1.63 EPS for the current year.
In related news, Director Lloyd E. Ross sold 1,000 shares of the business’s stock in a transaction that occurred on Thursday, September 1st. The stock was sold at an average price of $38.71, for a total value of $38,710.00. Following the completion of the sale, the director now directly owns 54,254 shares in the company, valued at approximately $2,100,172.34. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Diana M. Bonta sold 980 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The stock was sold at an average price of $39.62, for a total value of $38,827.60. Following the completion of the sale, the director now owns 23,972 shares of the company’s stock, valued at $949,770.64. The disclosure for this sale can be found here. 1.43% of the stock is owned by corporate insiders.
A number of large investors have recently bought and sold shares of AWR. Profund Advisors LLC raised its stake in American States Water by 0.5% in the second quarter. Profund Advisors LLC now owns 7,284 shares of the company’s stock valued at $319,000 after buying an additional 34 shares during the period. PineBridge Investments L.P. raised its position in shares of 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. BlackRock Advisors LLC raised its position in shares of American States Water by 1.0% in the second quarter. BlackRock Advisors LLC now owns 17,335 shares of the company’s stock worth $760,000 after buying an additional 176 shares during the period. Arizona State Retirement System raised its position in shares of American States Water by 1.1% in the second quarter. Arizona State Retirement System now owns 19,000 shares of the company’s stock worth $833,000 after buying an additional 200 shares during the period. Finally, Capstone Asset Management Co. raised its position in shares of American States Water by 2.3% in the second quarter. Capstone Asset Management Co. now owns 11,552 shares of the company’s stock worth $506,000 after buying an additional 260 shares during the period. Hedge funds and other institutional investors 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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