Fintel reports that on October 4, 2023, UBS maintained coverage of Essential Utilities (NYSE:WTRG) with a Buy recommendation.
Analyst Price Forecast Suggests 53.09% Upside
As of October 5, 2023, the average one-year price target for Essential Utilities is 50.49. The forecasts range from a low of 42.42 to a high of $64.05. The average price target represents an increase of 53.09% from its latest reported closing price of 32.98.
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The projected annual revenue for Essential Utilities is 2,231MM, a decrease of 3.13%. The projected annual non-GAAP EPS is 1.93.
Essential Utilities Declares $0.31 Dividend
On August 1, 2023 the company declared a regular quarterly dividend of $0.31 per share ($1.23 annualized). Shareholders of record as of August 11, 2023 received the payment on September 1, 2023. Previously, the company paid $0.29 per share.
At the current share price of $32.98 / share, the stock's dividend yield is 3.72%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.34%, the lowest has been 1.74%, and the highest has been 3.73%. The standard deviation of yields is 0.29 (n=235).
The current dividend yield is 4.75 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.70. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.22%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1031 funds or institutions reporting positions in Essential Utilities. This is a decrease of 39 owner(s) or 3.64% in the last quarter. Average portfolio weight of all funds dedicated to WTRG is 0.23%, an increase of 0.40%. Total shares owned by institutions increased in the last three months by 1.64% to 208,389K shares. 
The put/call ratio of WTRG is 5.12, indicating a bearish outlook.
What are Other Shareholders Doing?
Canada Pension Plan Investment Board holds 21,661K shares representing 8.19% ownership of the company. No change in the last quarter.
Amundi holds 8,149K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 7,103K shares, representing an increase of 12.84%. The firm increased its portfolio allocation in WTRG by 1,448.25% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,484K shares representing 2.83% ownership of the company. In it's prior filing, the firm reported owning 7,316K shares, representing an increase of 2.25%. The firm decreased its portfolio allocation in WTRG by 13.70% over the last quarter.
IJH - iShares Core S&P Mid-Cap ETF holds 7,298K shares representing 2.76% ownership of the company. In it's prior filing, the firm reported owning 7,363K shares, representing a decrease of 0.90%. The firm decreased its portfolio allocation in WTRG by 13.20% over the last quarter.
Macquarie Group holds 7,210K shares representing 2.73% ownership of the company. In it's prior filing, the firm reported owning 952K shares, representing an increase of 86.79%. The firm decreased its portfolio allocation in WTRG by 8.35% over the last quarter.
Essential Utilities Background Information
(This description is provided by the company.)
Essential is one of the largest publicly traded water, wastewater and natural gas providers in the U.S., serving approximately 5 million people across 10 states under the Aqua and Peoples brands. Essential is committed to excellence in proactive infrastructure investment, regulatory expertise, operational efficiency and environmental stewardship. The company recognizes the importance water and natural gas play in everyday life and is proud to deliver safe, reliable services that contribute to the quality of life in the communities it serves.
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