On November 6, 2023, Michael Marberry, a director at American Water Works Co Inc (AWK, Financial), purchased 3,786 shares of the company. This move is significant as insider buying can often be a positive indicator for the company's future performance.
American Water Works Co Inc is a public utility company that operates in the United States and Canada. The company is primarily involved in the provision of water and wastewater services to residential, commercial, and industrial customers. It is the largest and most geographically diverse publicly traded water and wastewater utility company in the U.S.
Insider buying refers to when a director, executive, or any person with access to key company information purchases shares of that company's stock. Such transactions are closely monitored as they can provide valuable insights into the company's performance and the insiders' confidence in the business.
Over the past year, the insider has purchased a total of 5,186 shares and has not sold any shares. This recent purchase further strengthens the insider's position in the company.
The insider transaction history for American Water Works Co Inc shows a total of 3 insider buys over the past year, with no insider sells recorded over the same timeframe. This trend suggests a positive sentiment among the company's insiders.
On the day of the insider's recent buy, shares of American Water Works Co Inc were trading at $130.2 each, giving the company a market cap of $24.84 billion. The stock's price-earnings ratio stands at 26.63, which is higher than the industry median of 14.96 but lower than the company's historical median price-earnings ratio.
With a price of $130.2 and a GuruFocus Value of $156.99, American Water Works Co Inc has a price-to-GF-Value ratio of 0.83. This suggests that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity at American Water Works Co Inc, coupled with the company's valuation metrics, suggests a positive outlook for the company's stock. However, investors should always conduct their own due diligence before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
