Cibc Bancorp USA Adds $104M in American Water Works Company, Inc. ($AWK)
CIBC Bancorp USA has significantly increased its holdings in American Water Works, adding 790,254 shares.
Key Points
- CIBC Bancorp USA boosted its stake in American Water Works by 790,254 shares to 817,167 shares, valued at $107.5 million.
- American Water Works (NYSE:AWK) traded at $131.58 on Wednesday with a market cap of $25.7 billion and a P/E ratio of 23.3.
- Insiders bought shares in May, and analysts like UBS have upgraded AWK to a 'buy' with a $140 target.
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CIBC Bancorp USA has significantly increased its investment in American Water Works Company, Inc. (NYSE:AWK). According to its latest Form 13F filing with the SEC, the fund boosted its holdings by 790,254 shares, bringing its total to 817,167 shares. This stake is valued at approximately $107.5 million as of the filing date.
Cibc Bancorp USA vs. the S&P 500
Hypothetical, simulated performance of disclosed positions vs. the S&P 500. Not realized profit and not investment advice. Past performance does not indicate future results. Details.
What Changed in CIBC Bancorp USA's American Water Works Position
CIBC Bancorp USA's decision to increase its position in American Water Works is notable, with a 2,936.3% increase in shares from the previous 26,913 shares. This substantial addition reflects a strong level of confidence in the utility company's future performance.
Other Institutional Activity in American Water Works
Other institutional investors have shown varied interest in American Water Works. BlackRock, Inc. decreased its holdings slightly by 15,018 shares, ending with 19,513,998 shares valued at about $2.66 billion. Vanguard Capital Management LLC opened a new position with 12,699,771 shares, valued at approximately $1.73 billion. State Street Corp made a modest increase, adding 924 shares to hold a total of 12,038,747 shares worth $1.64 billion. Wellington Management Group LLP significantly increased its stake by 3,936,149 shares, totaling 11,028,906 shares valued at $1.5 billion.
American Water Works Company, Inc. Stock Down 4.9%
Shares of American Water Works (NYSE:AWK) traded near $131.58 on Wednesday. The company has a market capitalization of about $25.7 billion and a P/E ratio of 23.3. Its stock has seen a 52-week low of $120.57 and a high of $147.87, with a 50-day moving average of $126.91 and a 200-day moving average of $131.82. The company's beta is 0.613, indicating lower volatility compared to the broader market.
$AWK stock price
Daily closing prices, year to date. Not investment advice.
Recent Earnings
American Water Works reported annual revenue of approximately $5.2 billion, with a revenue growth of 5.7%. The company achieved a net margin of 21.2% and a return on equity of 10.2%. Its next earnings report is scheduled for July 29, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
3 target cuts vs 0 raises.
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EPS & revenue
EPS missed estimates by 9.3%. Revenue met estimates.
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Profit surprise
EBITDA missed by 3 percent. Operating income missed by 5 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 upgrade, 3 target cuts.
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Earnings quality
Positive free cash flow.
Earnings Call Summary
The company delivered first quarter earnings of $1.01 per share, in line with expectations despite a slight miss versus the consensus estimate of $1.10. Revenue of $1.207 billion matched consensus exactly. Management highlighted successful execution on regulatory and capital plans, including secured $185 million in PFAS manufacturer settlements and completion of rate cases in two states. The Essential Utilities merger received Kentucky regulatory approval and is on track to close by the end of the first quarter 2027.
Guidance American Water expects to deliver 8 percent earnings per share growth in 2026, reaching $6.02 to $6.12 per share. The company plans most revenue increases in the second half of the year from new rates in key states like Pennsylvania and New Jersey. They continue pursuing dividend growth of 7 to 9 percent yearly.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Dividend
The company pays an annual dividend rate of $3.58 per share, yielding 2.72%. The dividend payout ratio stands at 58.7%.
Insider Buying and Selling at American Water Works Company, Inc.
Several insiders, including Michael Marberry, Karl Kurz, and Stuart McGuigan, purchased shares on May 13, 2026. Each insider bought 1,374 shares, with no specified average price, indicating potential confidence in the company's prospects.
Analysts Set New Price Targets
On May 29, 2026, UBS upgraded American Water Works to a 'buy' with a price target of $140. Truist Securities maintained its 'hold' rating with a target of $130. B of A Securities also maintained a 'hold' rating, setting a target price of $134. Currently, the consensus among analysts is to hold the stock, with a mean target price of $135.55.
About American Water Works
American Water Works Company, Inc., based in Camden, New Jersey, is a leading utility company providing water and wastewater services across the United States. It operates numerous water and wastewater treatment facilities and serves a wide range of customers, including residential, commercial, and industrial clients. With a history dating back to 1886, the company employs around 7,000 people and is led by CEO John C. Griffith.
Bottom Line
CIBC Bancorp USA's significant increase in its stake in American Water Works highlights growing institutional interest in the company. While insider purchases suggest confidence, the company's stable financial performance and recent analyst ratings provide additional context for investors. As always, the latest 13F filings reflect past positions and may not indicate current holdings.
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