American Water Works Surpasses Analyst Target Price Amid Mixed Ratings
Recently, shares of American Water Works Co, Inc. (Symbol: AWK) traded at $139.57, exceeding the average 12-month analyst target price of $138.67. This situation poses an interesting challenge for analysts: they can either downgrade their valuation or adjust their target price to a new, higher level. The response may depend on recent developments within the company that could be influencing its stock price.
Within the Zacks coverage universe, 12 analysts have contributed to the average target for American Water Works. However, it is important to note that this average can mask the diversity of opinion among analysts. While one analyst has set a target as low as $105.00, another stands out with a bullish outlook, targeting $164.00. The standard deviation among these estimates is $16.999.
Investors often refer to the average price target as a representation of collective insight, known as “wisdom of crowds.” The recent surge above the target of $138.67 signals an opportunity for shareholders to evaluate whether this price is merely a stepping stone towards a higher valuation or if it indicates that the stock has become overvalued, warranting a reconsideration of their investment strategy.
| Recent AWK Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 4 | 4 | 4 | 4 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 8 | 8 | 7 | 7 |
| Sell ratings: | 2 | 2 | 2 | 2 |
| Strong sell ratings: | 0 | 0 | 1 | 1 |
| Average rating: | 2.53 | 2.53 | 2.67 | 2.67 |
The average rating in the table above is measured on a scale from 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com. For the latest research report on AWK, visit here — FREE.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
