American Water falls after $1 bln equity offering

American Water Works Co

05/08/2025 10:39

** American Water Works Co's AWK.N shares down 2.4% to $143.44 on light premarket volume after $1 bln follow-on priced

** Camden, New Jersey-based utility early Tues announced ~7 mln shares at $142, a 3.4% discount to stock's close on Mon

** AWK entered forward sale agreements with jt bookrunners Wells Fargo, JP Morgan and Mizuho

** Upon settlement of such agreements, expected on or prior to Dec 31, 2026, co says to use net proceeds for general corp purposes

** A forward sale structure allows the utility to lock in current prices and delays new share issuance and collecting proceeds until AWK needs the funds, thereby avoiding immediate shareholder dilution

** AWK has ~195.1 mln shares outstanding for ~$28.7 bln market cap

** Shares of AWK on Mon rose 0.9%, extending YTD gain to 18%. That compares to 15% advance for S&P 500 Utilities index .SPLRCU

** Avg rating among 14 analysts covering AWK is "hold" and median PT is $144.50, according to latest LSEG data

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))