Aqua America stock: buy or sell?

WTR stock price: $43.34 -1.68% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

5

Aqua America slipped -1.68% to $43.34 after marking all time highs on Tuesday.

Aqua America, Inc., through its subsidiaries, operates regulated utilities that provide water or wastewater services in the United States.

Should I buy Aqua America 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. That's why is so important to define your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups match with Aqua America stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Aqua America stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we detected 6 ratings published for WTR stock in the last month.

The general sentiment of these ratings is bullish for WTR stock, with 5 positive ratings.
Is WTR a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-8UBS GroupBuyNeutral
2019-7-15Bank of American/aBuy
2019-6-28HSBCn/aBuy
2019-3-19UBS GroupNeutralBuy
2019-2-5Janney Montgomery Scottn/aBuy
2019-1-30Boenning Scattergoodn/aBuy

Aqua America stock analysis

Daily outlook

After several days of continuous hikes in past weeks, Aqua America slipped -1.68% to $43.34.

After reaching all time highs on Tuesday, Aqua America slipped -1.68% today to $43.34. On May, SMA100d and SMA200d crossed up triggering a rise of 15.94%. From a daily perspective, WTR is in a short term uptrend after plotting its last bottom ($42.93, on Aug 14th) higher than the previous bottom, and its last top ($44.60, on Tuesday) also over the previous top. Now trading in between its last bottom and last top WTR might consolidate in a plain range, waiting to break out over $44.60 or down under $42.93. On April WTR price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. On Tuesday, WTR hit new all time highs, pushing higher previous ATH of $44.58 recorded on Monday. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

WTR stock chart (daily)

Weekly outlook

Despite of the red candle ($43.34, -2.12%), Aqua America topped new all time high at $44.60. This week broke a green streak of 4 weeks.

Price pattern shows an uptrend with two rising tops and bottoms, and now finally trading above the $37.22 resistance. Since SMA20d and SMA40w crossed up late April, WTR price climbed $5.13 per share (13.43%). Since early February when WTR stock price broke up the SMA40w line, it gained $9.24 (27.10%).

WTR stock chart (weekly)

Aqua America stock price history

Aqua America stock went public on May 13th, 1985 with a price of $0.011. Since then, WTR stock surged a 433,300.00%, with a yearly average of 12,744.10%. If you had invested right after WTR's IPO a $1,000 in Aqua America stock in 1985, it would worth $4,333,000.00 today.

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

Aqua America stock historical price chart

WTR stock reached all-time highs on Tuesday with a price of $44.60.

Aqua America stock price target is $44.80

How much a stock will be priced tomorrow or next week is quite unpredictable However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 4 price targets for Aqua America stock:
WTR stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-8UBS GroupDowngrades$42.00$45.007.1%
2019-7-15Bank of AmericaInitiatesn/a$45.00-
2019-6-28HSBCSet Price Targetn/a$46.00-
2019-1-30Boenning ScattergoodReiteratesn/a$43.00-
(in average)$42.00$44.807.0%
Moving in a range from $46.00 and $43.00, the price forecast for Aqua America stock is $44.80. In average, analysts' outlook on WTR price target is positive, improving the prediction by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Aqua America failed analysts on February when it reported an Earnings per Share (EPS) of $0.31 when the analysts' forecast was $0.32.
WTR earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.27n/a
2017-Q2-n/a0.34n/a
2017-Q32017-10-310.430.430.0%
2017-Q42018-02-270.310.323.2%
2018-Q12018-05-080.290.290.0%
2018-Q22018-08-010.360.372.8%
2018-Q32018-11-050.430.442.3%
2018-Q42019-02-180.320.31-3.1%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Aqua America annual turnover inched a nice 3.53% to $838.09 M USD from $809.53 marked in 2017. However, its income margin (compared to sales) fell to 22.91%, that is $191.99 million.

WTR annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$769 M-$205 M26.7%-
2014$780 M1.47%$233 M29.9%13.78%
2015$814 M4.40%$202 M24.8%-13.48%
2016$820 M0.70%$234 M28.6%16.05%
2017$810 M-1.26%$240 M29.6%2.37%
2018$838 M3.53%$192 M22.9%-19.92%

Quarterly financial results

Aqua America reported $205.75 million in sales for 2018-Q4, a -9.02% decline compared to previous quarter. Reported quarter earnings marked $-3.66 M with a profit margin of -1.78%. Profit margin plunged a -36.37% compared to previous quarter when profit margin was 34.59%. When comparing turnover to same quarter last year, Aqua America sales marked a tiny gain and gained a 1.20%.
WTR quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$188 M-$49 M26.1%-
2017-Q2$203 M8.32%$61 M30.0%24.25%
2017-Q3$215 M5.70%$76 M35.5%25.02%
2017-Q4$203 M-5.44%$53 M26.3%-29.85%
2018-Q1$194 M-4.41%$51 M26.2%-4.93%
2018-Q2$212 M9.01%$67 M31.4%30.98%
2018-Q3$226 M6.74%$78 M34.6%17.46%
2018-Q4$206 M-9.02%$-4 M-1.8%-104.68%

Aqua America ownership

When you are planning to invest in a stock, 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 Aqua America, 0.29% of all outstanding shares are owned by its staff.

In case of Aqua America stock, 59.01% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for WTR stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Aqua America:

WTRARTNAAWKAWRCTWS
Market cap$7.7 B$307.6 M$22.5 B$3.3 B$840.8 M
Total shares177.9 M8.4 M180.5 M36.8 M12.1 M
Float shares215.1 M8.3 M180.2 M36.3 M11.9 M
  - Institutional holdings (%)59.0%47.7%88.1%74.4%52.5%
  - Insider holdings (%)0.3%4.0%0.2%1.0%2.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Aqua America summary

Friday, August 23rd, 2019
Open$44.06
Close$43.34
Day range$43.17 - $44.36
Previous close$44.08
Session gain-1.68%
Average true range$0.78
50d mov avg$41.76
100d mov avg$39.95
200d mov avg$37.10
Daily patternlt06a
Weekly pattern lb02c

Aqua America performance

To better understand Aqua America performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Aqua America performance to Artesian Resources, , American States Water, Connecticut Water Service, California Water Service, Middlesex Water, SJW and The York Water:
Stock3m6m12m
WTRAqua America9.92%20.56%17.64%
ARTNAArtesian Resource...0.05%-7.49%-1.19%
AWK10.15%24.60%43.00%
AWRAmerican States W...19.53%24.86%47.83%
CTWSConnecticut Water...0.33%2.05%3.08%
CWTCalifornia Water ...10.28%6.08%37.64%
MSEXMiddlesex Water0.71%4.22%34.84%
SJW 5.25%7.63%18.62%
YORWThe York Water4.10%4.33%26.51%

Aqua America competitors

We picked a few stocks to conform a list of Aqua America competitors to examine if you are interested in investing in WTR: