American Water Works Co SVP Sold $404K In Company Stock

Melissa K Wikle, SVP at American Water Works Co AWK, reported an insider sell on June 2, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Monday showed that Wikle sold 2,825 shares of American Water Works Co. The total transaction amounted to $404,766.

Tracking the Tuesday's morning session, American Water Works Co shares are trading at $140.7, showing a down of 1.21%.

Unveiling the Story Behind American Water Works Co

American Water Works is the largest investor-owned US water and wastewater utility, serving approximately 3.5 million customers in 16 states. It provides water and wastewater services to residential, commercial, and industrial customers and operates predominantly in regulated markets. The company's nonregulated business is water services for military bases, which operates under long-term contracts with regulated-like returns.

American Water Works Co: A Financial Overview

Revenue Growth: American Water Works Co's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 12.96%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Utilities sector.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 59.02%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): American Water Works Co's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.05.

Debt Management: American Water Works Co's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.38, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 25.94 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.77, American Water Works Co's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 15.36, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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The Importance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of American Water Works Co's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.