AWK stock: buy or sell?

AWK stock price: $115.76 -0.19% At close on July 16th, 2019

Updated on:
July 16th, 2019

3

American Water Works stayed stable -0.19% today to $115.76 after reaching all time highs on Wednesday. With Tuesday it's been 4 sliding days in a row, loosing $-2.95 (-2.49%).

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

Should I buy AWK stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. 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?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we detected 6 ratings published for AWK stock in the last 30 days.

Is AWK a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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

American Water Works stayed constant -0.19% to $115.76 after topping to all time highs on Wednesday.

American Water Works stayed stable -0.19% today to $115.76 after reaching all time highs on Wednesday. On Wednesday, AWK hit a new all time high, pushing higher than on Jun/7 tops. Check different trading setups that use ATHs as triggers. Since price and SMA50d lines crossed up on April, AWK climbed $13.96 (13.71%).

AWK stock chart (daily)

Weekly outlook

American Water Works shares slightly fell -0.75% this week, ending at $115.76.

American Water Works stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high American Water Works marked last week. Since early August 2018 when SMA20w and SMA40w crossed up, AWK price gained $29.43 per share (34.09%). Since price and SMA20w lines crossed up by mid January, AWK climbed $25.97 (28.92%).

AWK stock chart (weekly)

AWK stock price history

AWK stock went public on April 23rd, 2008 with a price of $15.091. Since then, AWK stock grew a 667.10%, with a yearly average of 60.60%. If you had invested $1,000 in AWK stock in 2008, it would worth $6,671.00 today.

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

AWK stock historical price chart

AWK stock reached all-time highs on Wednesday with a price of $119.30.

AWK stock price target is $104.70

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' AWK stock price predictions in the hope that they will be met as they may be wrong and not met. We found 3 price forecasts for American Water Works stock published in the last 30 days:
AWK stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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)$96.50$104.708.0%
Moving in a range from $109.00 and $102.00, the price prediction for AWK stock is $104.70. In average, analysts' outlook on AWK price target is positive, improving the prediction by a 8.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since February, when American Water Works presented its last earnings report, it . As soon as we get its actual EPS from the earnings report, we will update this review.
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 good growth of 2.47% to $3,440.00 million USD. When comparing 2018 vs 2017, aligned with this, profit margin (that is, the net income divided by revenues) grew 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 sales to same quarter last year, American Water Works sales marked a decent increase and stepped up 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 a stock, it's worth to review its ownership structure.

American Water Works shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.23% of all shares.

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

For a better context understanding, the next table shows ownership data compared to other related companies:

AWKARTNAAWRCDZICTWS
Market cap$20.9 B$304.0 M$2.8 B$285.7 M$841.5 M
Total shares180.5 M8.4 M36.8 M26.9 M12.1 M
Float shares180.1 M8.3 M36.3 M22.3 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

Tuesday, July 16th, 2019
Open$115.47
Close$115.76
Day range$114.28 - $116.30
Previous close$115.98
Session gain-0.19%
Average true range$1.75
50d mov avg$114.43
100d mov avg$109.12
200d mov avg$100.16
Daily pattern
Weekly pattern lt06a

American Water Works performance

To measure stock performance is always good to benchmark with competitors or related stocks. We selected Artesian Resources, American States Water, Cadiz, Connecticut Water Service, California Water Service, Middlesex Water, SJW, Aqua America and The York Water as the bechmarking frame for American Water Works stock.
Stock3m6m12m
AWK11.08%26.18%34.86%
ARTNAArtesian Resource...3.31%5.84%-2.03%
AWRAmerican States W...9.17%15.93%27.00%
CDZICadiz7.93%5.15%-19.62%
CTWSConnecticut Water...2.45%7.09%11.13%
CWTCalifornia Water ...1.60%8.28%26.94%
MSEXMiddlesex Water9.28%7.30%32.33%
SJW 2.96%8.78%-3.33%
WTRAqua America11.61%22.42%15.98%
YORWThe York Water8.10%11.95%13.27%

American Water Works competitors

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