Vanguard Group 13F: Cuts American Water Works (AWK) Stake by $43M
The institutional investor filed an SEC report showing a reduced position in the regulated water utility.
Reviewed by automated data checks against the source filing. How we make and check alerts
Vanguard Group sold 323,056 shares from its stake in American Water Works Company, Inc. ($AWK), a 1.23% decrease, according to a 13F filing with the SEC dated January 29, 2026. It reported 25,903,993 shares worth $3.43 billion at the end of the quarter.
Since the filing, $AWK is down 2.6% after 1 week, up 5.7% after 1 month and up 6.8% to date (from the $126.38 close on Jan 29, 2026).
AWK
American Water Works Company, Inc.
Key Points
- Vanguard Group trimmed its position in American Water Works Company, Inc. NYSE AWK by 323,056 shares during the period.
- The fund finished the reporting period with 25,903,993 shares valued at roughly $3.43 billion.
- Wall Street firms hold a consensus hold rating on the utility stock with an average price target of $141.45.
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Vanguard Trims American Water Works Holdings
Vanguard Group lowered its exposure to American Water Works Company, Inc. NYSE AWK according to a recent Form 13F filing with the SEC. The filing reflects holdings as of the reporting period and may not represent the investor's current position. During the quarter, the major fund reduced its stake by 323,056 shares, marking a 1.2% decrease from the prior period.
Position Details and Valuation
The adjustment brought Vanguard Group's total holdings down to 25,903,993 shares of the water utility. Based on market prices around the filing date, the remaining stake carried an approximate value of $3.43 billion. This transaction follows earlier adjustments by other major institutional managers who have actively shifted their positions in the utility sector over recent reporting cycles.
Stock Price Context
Shares of American Water Works have traded in a 52-week range spanning from a low of $120.57 to a high of $145.64. The equity recently changed hands around $132.50, placing it near its 200-day moving average of $131.93. The company currently carries a price-to-earnings ratio of 23.18, reflecting its valuation within the regulated utility space.
Recent Earnings and Dividend Profile
For its most recent financial period, the company reported $5.28 billion in revenue alongside earnings of $5.78 per share. The utility maintains a net profit margin of 21.3% and a return on equity of 10.1%. Shareholders receive an annual dividend payment of $3.58 per share, which translates to a dividend yield of 2.6% based on recent pricing. The next quarterly financial results are scheduled to drop on October 28, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
3 target cuts vs 0 raises.
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EPS & revenue
EPS missed estimates by 9.3%. Revenue met estimates.
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Profit surprise
EBITDA missed by 3 percent. Operating income missed by 5 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 upgrade, 3 target cuts.
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Earnings quality
Positive free cash flow.
Earnings Call Summary
The company delivered first quarter earnings of $1.01 per share, in line with expectations despite a slight miss versus the consensus estimate of $1.10. Revenue of $1.207 billion matched consensus exactly. Management highlighted successful execution on regulatory and capital plans, including secured $185 million in PFAS manufacturer settlements and completion of rate cases in two states. The Essential Utilities merger received Kentucky regulatory approval and is on track to close by the end of the first quarter 2027.
Guidance American Water expects to deliver 8 percent earnings per share growth in 2026, reaching $6.02 to $6.12 per share. The company plans most revenue increases in the second half of the year from new rates in key states like Pennsylvania and New Jersey. They continue pursuing dividend growth of 7 to 9 percent yearly.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Analysts Set New Price Targets
Wall Street firms continue to monitor the utility with mixed sentiment. On October 16, 2026, UBS maintained its buy rating while adjusting its price target to $153.00, following an earlier update on September 10 at $162.00. Truist Securities kept a hold rating on August 4, 2026, with a target of $138.00. Mizuho maintained a neutral stance at $140.00 on July 31, 2026, and Barclays held an underweight rating at $130.00 on July 15, 2026. JP Morgan kept a neutral stance at $147.00 on July 8, 2026, while UBS issued a buy rating at $150.00 on July 2, 2026. Across the board, the stock carries a consensus hold rating and a mean target price of $141.45 from eleven analysts.
Inside the Utility Provider
Based in Camden, New Jersey, American Water Works operates regulated water and wastewater utility services across 14 states, serving roughly 3.6 million active customers. Its infrastructure includes treatment plants, storage facilities, and thousands of miles of transmission mains that supply residential, commercial, and industrial clients. Vanguard's portfolio adjustment arrives as institutional investors routinely rebalance large equity baskets to match shifting market conditions.
Related Filing Alerts
Source: Vanguard Group's 13F filing on $AWK (Jan 29, 2026). 13F filings show holdings as of the end of the reporting quarter and may not reflect the fund's current position. Find the original filing: Vanguard Group 13F filings on SEC EDGAR. Written by software, not financial advice. How we make alerts