BofA Securities slashes price target on Essential Utilities Inc. [WTRG] – find out why.

Essential Utilities Inc. [NYSE: WTRG] closed the trading session at $39.35 on 09/11/20. The day’s price range saw the stock hit a low of $39.10, while the highest price level was $39.80. The company report on September 10, 2020 that Essential Utilities Reports Progress on Infrastructure Projects to Improve Water, Wastewater and Natural Gas Service in 2020.

Essential emphasizes need for ongoing infrastructure investment during United for Infrastructure Week.

Essential Utilities Inc. (NYSE: WTRG) recognizes United for Infrastructure 2020: A Week to Champion America’s Infrastructure (Sept. 14-21) by raising awareness of the country’s critical need for infrastructure improvements and reporting progress on its planned approximately $950 million capital investment in 2020 in the 10 states where the company provides water and wastewater service as Aqua and natural gas service as Peoples.

The stocks have a year to date performance of -16.17 percent and weekly performance of -6.29 percent. The stock has been moved at 2.39 percent over the last six months. The stock has performed -14.49 percent around the most recent 30 days and changed -10.51 percent over the most recent 3-months.

If compared to the average trading volume of 1.20M shares, WTRG reached to a volume of 1051293 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Essential Utilities Inc. [WTRG]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WTRG shares is $49.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WTRG stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

BofA Securities have made an estimate for Essential Utilities Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 10, 2020. While these analysts kept the previous recommendation, Barclays raised their target price to Equal Weight. The new note on the price target was released on July 15, 2020, representing the official price target for Essential Utilities Inc. stock.

The Average True Range (ATR) for Essential Utilities Inc. is set at 1.06, with the Price to Sales ratio for WTRG stock in the period of the last 12 months amounting to 8.66. The Price to Book ratio for the last quarter was 2.16, with the Price to Cash per share for the same quarter was set at 0.03.

WTRG stock trade performance evaluation

Essential Utilities Inc. [WTRG] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.29. With this latest performance, WTRG shares dropped by -14.49% in over the last four-week period, additionally plugging by 2.39% over the last 6 months – not to mention a drop of -9.46% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for WTRG stock in for the last two-week period is set at 25.87, with the RSI for the last a single of trading hit 17.53, and the three-weeks RSI is set at 31.08 for Essential Utilities Inc. [WTRG]. The present Moving Average for the last 50 days of trading for this stock 43.85, while it was recorded at 40.01 for the last single week of trading, and 44.57 for the last 200 days.

Essential Utilities Inc. [WTRG]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Essential Utilities Inc. [WTRG] shares currently have an operating margin of +40.76 and a Gross Margin at +47.50. Essential Utilities Inc.’s Net Margin is presently recorded at +25.24.

Return on Total Capital for WTRG is now 6.28, given the latest momentum, and Return on Invested Capital for the company is 3.99. Return on Equity for this stock inclined to 7.62, with Return on Assets sitting at 2.72. When it comes to the capital structure of this company, Essential Utilities Inc. [WTRG] has a Total Debt to Total Equity ratio set at 79.83. Additionally, WTRG Total Debt to Total Capital is recorded at 44.39, with Total Debt to Total Assets ending up at 32.76. Long-Term Debt to Equity for the company is recorded at 76.14, with the Long-Term Debt to Total Capital now at 42.34.

Reflecting on the efficiency of the workforce at the company, Essential Utilities Inc. [WTRG] managed to generate an average of $141,846 per employee. Receivables Turnover for the company is 8.52 with a Total Asset Turnover recorded at a value of 0.11.Essential Utilities Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.70.

Earnings per share (EPS) analysis for Essential Utilities Inc. [WTRG] stock

With the latest financial reports released by the company, Essential Utilities Inc. posted 0.48/share EPS, while the average EPS was predicted by analysts to be reported at 0.44/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 9.10%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for WTRG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Essential Utilities Inc. go to 6.40%.

Essential Utilities Inc. [WTRG]: Insider Ownership positions

There are presently around $6,554 million, or 70.30% of WTRG stock, in the hands of institutional investors. The top three institutional holders of WTRG stocks are: VANGUARD GROUP INC with ownership of 25,515,898, which is approximately 6.633% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 22,921,140 shares of the stock with an approximate value of $901.95 million in WTRG stocks shares; and CANADA PENSION PLAN INVESTMENT BOARD, currently with $852.36 million in WTRG stock with ownership of nearly 0% of the company’s market capitalization.

Positions in Essential Utilities Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 257 institutional holders increased their position in Essential Utilities Inc. [NYSE:WTRG] by around 10,755,879 shares. Additionally, 248 investors decreased positions by around 13,466,909 shares, while 144 investors held positions by with 142,342,997 shares. The mentioned changes placed institutional holdings at 166,565,785 shares, according to the latest SEC report filing. WTRG stock had 63 new institutional investments in for a total of 2,651,781 shares, while 71 institutional investors sold positions of 5,969,504 shares during the same period.

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