H2O America (NASDAQ:HTO) Upgraded to “Strong-Buy” at Zacks Research

Zacks Research upgraded shares of H2O America (NASDAQ:HTO) from a hold rating to a strong-buy rating in a report released on Wednesday,Zacks reports.

A number of other equities research analysts have also weighed in on HTO. BTIG Research reissued a “buy” rating and set a $65.00 target price on shares of H2O America in a report on Tuesday, October 20th. Barclays decreased their price target on shares of H2O America from $66.00 to $65.00 and set an “overweight” rating for the company in a research report on Monday, October 19th. Seaport Research Partners reaffirmed a “buy” rating and set a $67.00 price target on shares of H2O America in a research note on Wednesday, August 12th. Weiss Ratings lowered shares of H2O America from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday. Finally, Huntington Sec initiated coverage on shares of H2O America in a research note on Wednesday. They issued a “strong-buy” rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, H2O America presently has a consensus rating of “Moderate Buy” and an average price target of $64.50.

H2O America Price Performance

H2O America stock opened at $58.57 on Wednesday. The company has a current ratio of 1.90, a quick ratio of 1.67 and a debt-to-equity ratio of 0.85. The company has a market capitalization of $2.83 billion, a PE ratio of 22.97, a P/E/G ratio of 6.80 and a beta of 0.33. H2O America has a 12 month low of $43.75 and a 12 month high of $67.09. The stock has a 50-day moving average price of $61.17 and a two-hundred day moving average price of $58.77.

H2O America (NASDAQ:HTO) last released its quarterly earnings results on Monday, October 26th. The utilities provider reported $1.04 earnings per share for the quarter, missing the consensus estimate of $1.06 by ($0.02). H2O America had a return on equity of 6.03% and a net margin of 12.51%. The firm had revenue of $250.23 million for the quarter. Analysts expect that H2O America will post 2.93 EPS for the current year.

H2O America Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 9th will be paid a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a dividend yield of 3.0%. The ex-dividend date of this dividend is Monday, November 9th. H2O America’s payout ratio is currently 69.02%.

Institutional Trading of H2O America

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in shares of H2O America in the 2nd quarter valued at about $431,857,000. Legal & General Group Plc acquired a new stake in H2O America during the second quarter worth approximately $34,792,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in H2O America during the second quarter worth approximately $30,650,000. Wellington Management Group LLP increased its holdings in H2O America by 23.7% in the second quarter. Wellington Management Group LLP now owns 1,995,839 shares of the utilities provider’s stock worth $121,287,000 after purchasing an additional 382,268 shares in the last quarter. Finally, Resolution Capital Ltd increased its holdings in H2O America by 105.8% in the first quarter. Resolution Capital Ltd now owns 482,460 shares of the utilities provider’s stock worth $28,306,000 after purchasing an additional 248,005 shares in the last quarter. 84.29% of the stock is currently owned by institutional investors.

H2O America News Summary

Here are the key news stories impacting H2O America this week:

• Positive Sentiment: Huntington Securities initiated coverage with a “Strong-Buy” rating and projected earnings of $3.10 per share for fiscal 2026, $2.87 for fiscal 2027 and $3.53 for fiscal 2028. The estimates suggest earnings growth over the longer term. Huntington Securities analyst coverage
• Positive Sentiment: H2O America priced a $325 million offering of equity units, with estimated net proceeds of approximately $315.3 million. Management may use the funds for acquisitions, capital expenditures and debt repayment, potentially supporting expansion and balance-sheet flexibility. H2O America announces pricing of equity-unit offering
• Neutral Sentiment: The equity units will provide a 7.750% annual distribution and are expected to be listed on Nasdaq, which could improve investor access and liquidity. However, the securities combine debt-like notes with future stock-purchase contracts, making the financing structure more complex.
• Negative Sentiment: The offering creates potential dilution because holders must ultimately purchase a variable number of H2O America common shares by November 2029. The associated 5.300% senior notes also increase the company’s financing obligations, which may pressure the stock despite the planned use of proceeds for growth and debt management. H2O America prices $325 million public offering

H2O America Company Profile