AWK stock: buy or sell?

AWK stock price: $122.83 0.37% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

American Water Works shares appreciated 0.37% to $122.83 today.

American Water Works Company, Inc., through its subsidiaries, provides water and wastewater services in the United States and Canada.

Should I buy AWK stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, American Water Works stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is American Water Works stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 7 ratings published for AWK stock in the last 30 days.

Is AWK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-14Wells Fargo & Con/aMarket Perform
2019-7-15Bank of AmericaNeutralUnderperform
2019-6-10Wells Fargo & Con/aHold
2019-2-21Wells Fargo & CoOutperformOutperform
2019-2-21Janney Montgomery ScottIn-LineBuy
2019-2-21Bank of AmericaNeutralNeutral
2019-1-2Wells Fargo & Con/aBuy

AWK stock analysis

Daily outlook

Shares of American Water Works closed today at $122.83 and appreciated a slightly fine 0.37%.

American Water Works shares appreciated 0.37% to $122.83 today. AWK is retaking the upward trend marking a new rising bottom heading to break out over $129.89. Since last August when AWK stock price broke up the SMA50d line, it gained $7.94 (6.91%). On Sep 4th, AWK hit a new all time high, pushing higher than on Sep 3rd tops. Check different trading setups that use ATHs as triggers.

AWK stock chart (daily)

Weekly outlook

Shares of American Water Works ended this week at $122.83 and appreciated a slightly good 1.33%.

Price pattern shows an uptrend with two rising tops and bottoms, and now trading upwards to the $129.89 resistance. Not so far away is the last price record American Water Works marked early September. Since mid January when AWK stock price broke up the SMA20w line, it gained $33.42 (37.38%).

AWK stock chart (weekly)

AWK stock price history

AWK IPO was on April 23rd, 2008 at $15.02 per share1. Since then, AWK stock surged a 717.80%, with a yearly average of 65.30%. If you had invested $1,000 in AWK stock in 2008, it would worth $7,178.00 today.

1: Adjusted price after possible price splits or reverse-splits.

AWK stock historical price chart

AWK stock reached all-time highs on Sep/4 with a price of $129.89.

AWK stock price target is $110.50

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 4 price forecasts for American Water Works stock:
AWK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-14Wells Fargo & CoRaises Target$122.00$128.004.9%
2019-2-21Wells Fargo & CoRaises Target$101.00$109.007.9%
2019-2-21Janney Montgomery ScottReiteratesn/a$102.00-
2019-2-21Bank of AmericaReiterates$92.00$103.0012%
(in average)$105.00$110.505.0%
The price forecast for American Water Works stock is $110.50, moving in a range between $128.00 and $102.00. In average, analysts' outlook on AWK price forecast is positive, upgrading the forecast by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last February, when American Water Works presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
AWK earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.73n/a
2017-Q32017-11-011.081.080.0%
2017-Q42018-02-200.660.694.5%
2018-Q12018-05-020.550.597.3%
2018-Q22018-08-010.810.832.5%
2018-Q32018-10-311.161.23.4%
2018-Q42019-02-190.690.690.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a slightly fine growth of 2.47% to $3,440.00 M dollars. When comparing 2018 vs 2017, in line, profit margin (that is, the net income divided by revenues) inched a 3.79% to 16.48%.

AWK annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,900 M-$369 M12.7%-
2014$3,011 M3.84%$423 M14.1%14.63%
2015$3,159 M4.90%$476 M15.1%12.50%
2016$3,302 M4.53%$468 M14.2%-1.68%
2017$3,357 M1.67%$426 M12.7%-8.97%
2018$3,440 M2.47%$567 M16.5%33.10%

Quarterly financial results

American Water Works posted $850.00 million in revenues for 2018-Q4, a -12.91% decline compared to previous quarter. Reported quarter earnings marked $112.00 million with a profit margin of 13.18%. Profit margin eased a -5.98% compared to previous quarter when profit margin was 19.16%. When comparing turnover to same quarter last year, American Water Works sales marked a fine gain and gained a 3.53%.
AWK quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$844 M-$131 M15.5%-
2017-Q3$936 M10.90%$203 M21.7%54.96%
2017-Q4$821 M-12.29%$-1 M-0.1%-100.49%
2018-Q1$761 M-7.31%$106 M13.9%-10,700.00%
2018-Q2$853 M12.09%$162 M19.0%52.83%
2018-Q3$976 M14.42%$187 M19.2%15.43%
2018-Q4$850 M-12.91%$112 M13.2%-40.11%
2019-Q1$813 M-4.35%$113 M13.9%0.89%

American Water Works ownership

When you are planning to invest in shares of a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For American Water Works, 0.23% of all outstanding shares are owned by its staff.

Bearish positions for AWK stock account 0.00%, no big difference from last month.

For a better understanding, the following table shows ownership data compared to other related stocks:

AWKARTNAAWRCDZICTWS
Market cap$22.2 B$308.9 M$3.4 B$343.6 M$845.1 M
Total shares180.7 M8.4 M36.8 M27.0 M12.1 M
Float shares180.2 M8.3 M36.3 M23.7 M11.9 M
  - Institutional holdings (%)88.1%47.7%74.4%82.1%52.5%
  - Insider holdings (%)0.2%4.0%1.0%2.6%2.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

AWK summary

Friday, September 20th, 2019
Open$122.00
Close$122.83
Day range$121.65 - $123.61
Previous close$122.38
Session gain0.37%
Average true range$2.26
50d mov avg$120.43
100d mov avg$116.90
200d mov avg$107.26
Daily patternlb02a
Weekly pattern lb02a

American Water Works performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We compared American Water Works against Artesian Resources, American States Water, Cadiz, Connecticut Water Service, California Water Service, Middlesex Water, SJW, Aqua America and The York Water in the following table:
Stock3m6m12m
AWK4.47%16.06%41.27%
ARTNAArtesian Resource...1.46%-1.55%3.49%
AWRAmerican States W...23.66%30.22%56.00%
CDZICadiz19.51%33.12%19.07%
CTWSConnecticut Water...1.57%3.64%3.75%
CWTCalifornia Water ...8.77%2.31%33.70%
MSEXMiddlesex Water6.97%14.34%33.11%
SJW 12.78%9.83%18.86%
WTRAqua America6.47%21.00%22.27%
YORWThe York Water16.05%22.69%39.31%

American Water Works competitors

We chose a few stocks to conform a list of American Water Works competitors to examine if you are interested in investing in AWK: