CAMDEN, N.J.—Cheryl Norton, Executive Vice President and Chief Operating Officer of American Water (NYSE:AWK) Works Company, Inc. (NYSE:AWK), has reported the sale of company shares totaling $642,018, according to a recent SEC filing. The transactions took place on November 22, 2024, where Norton sold a combined total of 4,647 shares of common stock.
The sales were executed at a price range between $138.04 and $138.23 per share. Following these transactions, Norton holds 17,552 shares directly. These sales reflect Norton's ongoing management of her equity holdings in the company, which is a leading provider of water and wastewater services in the United States.
In other recent news, American Water Works Company has been experiencing significant developments. UBS recently upgraded American Water's stock from Neutral to Buy, expressing confidence in the company's ability to sustain an 8% growth in earnings per share (EPS) and dividends per share through 2028. This upgrade followed a $1 billion increase in the company's capital plan.
In terms of mergers and acquisitions, American Water's subsidiary, New Jersey American Water, recently completed the acquisition of the Borough of Manville's wastewater collection system, adding approximately 4,300 customers to its service base. This move is part of the company's strategic growth initiatives, which have already seen the acquisition of Butler Area Sewer Authority adding 15,000 customers.
On the financial front, American Water reported an increase in EPS to $1.80 from $1.66 and reaffirmed its full-year 2024 EPS guidance. The company also projected substantial growth for 2025, driven by capital investments and strategic acquisitions. For 2025, the company expects an 8% EPS growth, with guidance set at $5.65 to $5.75 per share.
These developments indicate American Water's robust financial health and strategic growth initiatives, with expectations of continued success in the utility sector. As highlighted by UBS, the company's solid financial strategy and the potential for growth in its core business operations provide a positive outlook for the company.
InvestingPro Insights
As Cheryl Norton adjusts her equity position in American Water Works Company, Inc. (NYSE:AWK), investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, AWK boasts a market capitalization of $26.69 billion, reflecting its significant presence in the water utility sector.
The company's P/E ratio stands at 27.25, which aligns with an InvestingPro Tip indicating that AWK is trading at a high P/E ratio relative to its near-term earnings growth. This valuation metric suggests investors are paying a premium for the company's earnings, possibly due to its stable business model and growth prospects.
Another noteworthy InvestingPro Tip highlights that AWK has raised its dividend for 11 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by the company's current dividend yield of 2.23% and a dividend growth rate of 8.13% over the last twelve months. The consistency in dividend payments may be particularly attractive to income-focused investors in the utility sector.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into AWK's financial health and market position. These additional tips, along with real-time metrics, can help investors make more informed decisions about their AWK holdings or potential investments.
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