American Water Works Company, Inc. (AWK)

In the past six months, American Water Works' stock has been influenced by strong third-quarter 2025 results, reporting earnings of $1.94 per share and affirming long-term targets. The company announced a definitive all-stock merger agreement with Essential Utilities, Inc., valued at $63 billion, projected to close in early 2027. Earlier, the company reported solid second-quarter results, narrowing its 2025 EPS guidance. Bank of America upgraded the stock rating to "neutral," raising its price target to $139. The stock's 52-week range has been between $118.74 and $155.50.

The demand for American Water Works' products and services exhibits low seasonality. The demand for water and wastewater services remains relatively constant regardless of economic conditions, making water utilities a stable investment. This inherent stability translates into predictable revenue streams and consistent earnings for the company.

American Water Works Co., Inc. (AWK) is the largest publicly traded water and wastewater utility company in the United States, managing and distributing water resources. It provides drinking water, wastewater, municipal and industrial contract services, infrastructure repairs, water meter services, and online bill payment support. The company also offers military services through contracts with the Department of Defense.

American Water Works serves approximately 14 million people across 14 states and on 18 military installations, including California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia. A proposed merger with Essential Utilities, Inc. is expected to expand its geographic diversification to Ohio, North Carolina, and Texas, while increasing its presence in Illinois, Indiana, Pennsylvania, New Jersey, and Virginia.

American Water Works maintains a reputation as a leading provider of essential water and wastewater services. The company published its eighth Sustainability Report in 2023, highlighting its leadership and achievements in ESG principles, which positively contributes to its brand reputation. The company emphasizes its commitment to providing safe, clean, reliable, and affordable drinking water and wastewater services.

Institutional investors hold a substantial portion of American Water Works' shares, with approximately 95.16% institutional ownership as of July 2025. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Insider ownership is minimal, at about 0.14%.