AWK Should I Buy
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American Water Works Co Inc (AWK) is not a strong buy for a beginner, long-term investor at this time. While the company demonstrates solid financial growth and has positive catalysts such as the merger approval, the technical indicators are bearish, and the analyst rating suggests caution with a lowered price target. The options data also reflects a neutral sentiment. Given the user's impatience and preference for long-term investments, it is better to hold off on buying until there are clearer bullish signals or a more attractive entry point.
The technical indicators for AWK are bearish. The MACD is below 0 and negatively contracting, the RSI is neutral at 60.891, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its resistance level (R1: 128.895), with limited upside potential in the short term.
Merger approval with Essential Utilities, which will make AWK the largest regulated water utility in the U.S. by
Solid financial performance in Q3 2025, with revenue up 9.67% YoY and net income up 8.29% YoY.
Commitment to infrastructure investment and workforce development highlighted at the NARUC Winter Policy Summit.
Analyst Nicholas Campanella from Barclays lowered the price target to $122 from $134 and maintained an Underweight rating, reflecting cautious sentiment.
Bearish technical indicators with limited short-term upside potential.
No significant hedge fund or insider trading activity to indicate strong institutional confidence.
In Q3 2025, American Water Works reported strong financial growth. Revenue increased by 9.67% YoY to $1.451 billion, net income rose by 8.29% YoY to $379 million, and EPS grew by 8.38% YoY to 1.94. Gross margin remained stable at 100%.
Barclays analyst Nicholas Campanella lowered the price target to $122 from $134 and maintained an Underweight rating. The firm views 2026 as a year of 'execution and defense' for the utilities sector, with a focus on spending commitments and potential positive earnings revisions.
