American Water Works Co. Inc (NYSE: AWK)’s stock price has dropped by -2.13 in relation to previous closing price of 141.86. Nevertheless, the company has seen a loss of -1.44% in its stock price over the last five trading days. zacks.com reported 2025-06-04 that Water utilities like AWK, SBS, MSEX and ARTNA are likely to benefit from stable demand for water and wastewater services. Capital-intensive utilities are set to gain from interest rate cuts.
Is It Worth Investing in American Water Works Co. Inc (NYSE: AWK) Right Now?
American Water Works Co. Inc (NYSE: AWK) has a higher price-to-earnings ratio of 25.28x compared to its average ratio. AWK has 36-month beta value of 0.70. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 0 as “overweight,” 10 as “hold,” and 1 as “sell.”
The public float for AWK is 194.46M, and currently, short sellers hold a 2.32% ratio of that float. The average trading volume of AWK on June 05, 2025 was 1.60M shares.
AWK’s Market Performance
AWK’s stock has seen a -1.44% decrease for the week, with a -6.28% drop in the past month and a 0.74% gain in the past quarter. The volatility ratio for the week is 1.29%, and the volatility levels for the past 30 days are at 2.13% for American Water Works Co. Inc . The simple moving average for the past 20 days is -2.15% for AWK’s stock, with a 0.91% simple moving average for the past 200 days.
Analysts’ Opinion of AWK
Barclays, on the other hand, stated in their research note that they expect to see AWK reach a price target of $138. The rating they have provided for AWK stocks is “Underweight” according to the report published on April 22nd, 2025.
Wells Fargo gave a rating of “Equal Weight” to AWK, setting the target price at $129 in the report published on January 07th of the current year.
AWK Trading at -3.73% from the 50-Day Moving Average
After a stumble in the market that brought AWK to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -10.71% of loss for the given period.
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Insider Trading
Reports are indicating that there were more than several insider trading activities at AWK starting from Wikle Melissa K., who sale 2,825 shares at the price of $143.28 back on May 30 ’25. After this action, Wikle Melissa K. now owns 7,572 shares of American Water Works Co. Inc, valued at $404,766 using the latest closing price.
Norton Cheryl, the EVP and COO of American Water Works Co. Inc, sale 4,647 shares at $138.16 during a trade that took place back on Nov 22 ’24, which means that Norton Cheryl is holding 17,552 shares at $642,018 based on the most recent closing price.
Stock Fundamentals for AWK
Current profitability levels for the company are sitting at:
- 0.37 for the present operating margin
- 0.56 for the gross margin
The net margin for American Water Works Co. Inc stands at 0.22. The total capital return value is set at 0.06. Equity return is now at value 10.43, with 3.33 for asset returns.
Based on American Water Works Co. Inc (AWK), the company’s capital structure generated 0.58 points at debt to capital in total, while cash flow to debt ratio is standing at 0.14. The debt to equity ratio resting at 1.38. The interest coverage ratio of the stock is 3.24.
Currently, EBITDA for the company is 2.67 billion with net debt to EBITDA at 5.31. When we switch over and look at the enterprise to sales, we see a ratio of 8.61. The receivables turnover for the company is 6.55for trailing twelve months and the total asset turnover is 0.15. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.49.
Conclusion
To put it simply, American Water Works Co. Inc (AWK) has had a mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
