Royal Bank of Canada Cuts Position in American Water Works Company, Inc. $AWK

Royal Bank of Canada decreased its holdings in American Water Works Company, Inc. (NYSE:AWK) by 6.7% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 1,014,729 shares of the utilities provider’s stock after selling 72,530 shares during the quarter. Royal Bank of Canada owned 0.52% of American Water Works worth $138,096,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. Salomon & Ludwin LLC raised its stake in shares of American Water Works by 71.7% during the 4th quarter. Salomon & Ludwin LLC now owns 194 shares of the utilities provider’s stock worth $25,000 after buying an additional 81 shares during the period. Reflection Asset Management acquired a new stake in American Water Works in the 4th quarter valued at $25,000. Transamerica Financial Advisors LLC increased its holdings in American Water Works by 82.6% in the 4th quarter. Transamerica Financial Advisors LLC now owns 199 shares of the utilities provider’s stock worth $26,000 after acquiring an additional 90 shares in the last quarter. Nemes Rush Group LLC acquired a new position in American Water Works during the fourth quarter worth $27,000. Finally, Ascentis Independent Advisors acquired a new position in American Water Works during the first quarter worth $27,000. Hedge funds and other institutional investors own 86.58% of the company’s stock.

More American Water Works News

Here are the key news stories impacting American Water Works this week:

• Positive Sentiment: AWK reported second-quarter adjusted and GAAP earnings of $1.61 per share, above analyst expectations, while revenue increased 6.2% year over year to approximately $1.35 billion. Earnings also improved from $1.48 per share in the prior-year quarter. American Water Reports Solid Second Quarter 2026 Results
• Positive Sentiment: Management affirmed its $3.7 billion capital investment plan, reported progress on regulatory actions—including new Pennsylvania rates scheduled to take effect August 13—and said its proposed merger with Essential Utilities continues to advance, with approvals in three states and a Texas settlement in principle. American Water Reports Solid Second Quarter 2026 Results
• Positive Sentiment: The board declared a quarterly dividend of $0.895 per share, supporting AWK’s income appeal and signaling continued confidence in cash flows. The dividend is payable September 1 to shareholders of record August 11. American Water Announces Quarterly Dividend
• Neutral Sentiment: Illinois American Water announced workforce-development initiatives aimed at building the next generation of water-industry employees. The effort may support long-term operational needs but is unlikely to materially affect near-term earnings. Illinois American Water Supports Water Utility Workforce Development
• Negative Sentiment: AWK maintained its 2026 EPS outlook at $6.02–$6.12, with a midpoint of $6.07 that is slightly below the roughly $6.08 consensus estimate. Investors may view the lack of a guidance increase as underwhelming despite the quarterly beat, particularly with the shares trading at a relatively elevated earnings multiple.

American Water Works Stock Down 0.7%

Shares of NYSE AWK opened at $137.10 on Friday. The stock has a market cap of $26.77 billion, a PE ratio of 23.76, a P/E/G ratio of 2.79 and a beta of 0.61. The company has a current ratio of 0.37, a quick ratio of 0.34 and a debt-to-equity ratio of 1.16. American Water Works Company, Inc. has a 12-month low of $120.57 and a 12-month high of $147.87. The company has a 50-day moving average of $129.35 and a 200 day moving average of $131.01.

American Water Works (NYSE:AWK) last released its earnings results on Wednesday, July 29th. The utilities provider reported $1.61 earnings per share for the quarter, topping analysts’ consensus estimates of $1.53 by $0.08. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. American Water Works had a net margin of 21.35% and a return on equity of 10.38%. The business’s revenue was up 6.2% on a year-over-year basis. During the same period last year, the company posted $1.48 EPS. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. As a group, sell-side analysts predict that American Water Works Company, Inc. will post 6.09 EPS for the current fiscal year.

American Water Works Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 11th will be paid a dividend of $0.895 per share. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $3.58 dividend on an annualized basis and a yield of 2.6%. American Water Works’s payout ratio is 62.05%.

Analysts Set New Price Targets

Several brokerages have recently issued reports on AWK. Bank of America reiterated a “neutral” rating on shares of American Water Works in a research report on Thursday, July 16th. Weiss Ratings restated a “hold (c)” rating on shares of American Water Works in a research report on Wednesday, June 24th. Truist Financial decreased their price target on shares of American Water Works from $137.00 to $130.00 and set a “hold” rating on the stock in a research note on Friday, May 29th. UBS Group raised their price target on shares of American Water Works from $140.00 to $150.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Finally, Wells Fargo & Company set a $131.00 price objective on American Water Works in a report on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $140.60.

American Water Works Profile

American Water Works Company, Inc (NYSE: AWK) is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company’s operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.