Allspring Global Investments reduces stake in American States Water by 25% in Q3
November 5, 2024
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American States Water ($NYSE:AWR) is a publicly traded water and utility company headquartered in San Dimas, California. It provides water, electric, and contracted services to customers in California, Arizona, and other parts of the United States. In the third quarter of 2020, the company faced a significant change in its ownership as Allspring Global Investments Holdings LLC announced a 25.0% reduction in its stake in American States Water. This reduction was seen as a significant move by the investment firm, as it held a substantial amount of shares in the company. The firm focuses on investing in companies that operate in the water and utility industries, among other sectors. The decrease in stake by Allspring Global Investments could be seen as a signal of reduced confidence in American States Water’s financial performance or future prospects. This news may lead to some concerns among investors about the company’s growth potential.
However, it is worth noting that American States Water has been performing well in recent years. In its latest quarterly report, the company announced an increase in revenue and net income compared to the same period last year. With its consistent growth and reliable dividends, it continues to be an attractive investment option for many shareholders. In conclusion, while the decrease in stake by Allspring Global Investments may initially cause some uncertainty among investors, American States Water’s strong performance and stable financials should reassure shareholders about the company’s future prospects. Only time will tell how this change in ownership will affect the company in the long run.
Analysis
Based on its financial performance, the company falls into the category of ‘gorilla’ according to Star Chart standards. This means that AMERICAN STATES WATER has achieved consistent and high revenue or earnings growth, indicating its strong position in the market. As an investment, AMERICAN STATES WATER may be of interest to investors looking for stable and reliable returns. The company has shown strength in areas such as assets, dividends, and profitability, which are attractive qualities for investors seeking steady income. Additionally, AMERICAN STATES WATER has medium growth potential, making it a good option for those looking for a balance of stability and potential growth. This indicates that while the company may have some areas for improvement, such as its cashflows and debt levels, it is likely to be able to pay off its debt and fund future operations. This provides some level of reassurance for potential investors. In conclusion, my analysis of AMERICAN STATES WATER’s financials leads me to believe that it is a strong and stable company with potential for consistent returns. Its competitive advantage and financial indicators make it an attractive option for investors looking for a balance of stability and growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AWR. More…
| Total Revenues | Net Income | Net Margin |
| 595.7 | 124.55 | 21.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AWR. More…
| Operations | Investing | Financing |
| 67.68 | -188.76 | 129.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AWR. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.25k | 1.47k | 20.99 |
Key Ratios Snapshot
Some of the financial key ratios for AWR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 14.6% | 35.1% |
| FCF Margin | ROE | ROA |
| -20.3% | 16.9% | 5.8% |
Peers
The Company operates through two segments: Water and Electric. American States Water Company provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of California and Arizona. The Company is the largest shareholder-owned water utility in California. American States Water Company’s subsidiaries include Golden State Water Company and Arizona Water Company. SJW Group is a publicly traded water and wastewater utility company headquartered in San Jose, California. The Company operates through three segments: Water Utility Services, Real Estate Services, and Corporate and Other. SJW Group provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of California, Texas, Connecticut, and Massachusetts. American Water Works Co Inc is a publicly traded water and wastewater utility company headquartered in Voorhees, New Jersey. The Company operates through three segments: Regulated Businesses, Market-Based Operations, and Homeowner Services. American Water Works Company Inc provides water and wastewater services to residential, commercial, industrial, and governmental customers in the states of Illinois, New Jersey, Pennsylvania, Virginia, West Virginia, Kentucky, Ohio, Michigan, Indiana, North Carolina, South Carolina, Maryland, Delaware, Florida, Louisiana, Georgia, Colorado, Nevada, New Mexico, Oklahoma, Texas, and Wyoming. Global Water Resources Inc is a publicly traded water and wastewater utility company headquartered in Scottsdale, Arizona. The Company operates through two segments: Regulated Operations and Non-Regulated Operations. Global Water Resources Inc provides water and wastewater services to residential, commercial, industrial, and governmental customers in the state of Arizona.
– SJW Group ($NYSE:SJW)
SJW Group is a publicly traded water and wastewater utility company headquartered in San Jose, California. It is the holding company for San Jose Water Company, SJWTX, Inc., and SJW Land Company. As of 2019, SJW Group served more than one million people in San Jose, California; Austin, Texas; and Connecticut.
The company has a market cap of 1.88B as of 2022 and a Return on Equity of 7.1%. SJW Group’s market cap is the fourth highest of all water and wastewater utilities in the United States. The company’s ROE is above the average for all water and wastewater utilities in the United States.
– American Water Works Co Inc ($NYSE:AWK)
The American Water Works Company, Inc. is the largest publicly traded U.S. water and wastewater utility company. It provides water and wastewater services to an estimated 15 million people in 47 states and Ontario, Canada. The company operates through six segments: Regulated Businesses, Market-Based Businesses, Homeowner Services, Contracted Services, Other, and Corporate & Other. The company was founded in 1886 and is headquartered in Voorhees, New Jersey.
– Global Water Resources Inc ($NASDAQ:GWRS)
As of 2022, Global Water Resources Inc has a market cap of 277.81M and a ROE of 30.2%. The company is involved in the development, ownership, and operation of water and wastewater utilities in the United States.
Summary
Allspring Global Investments Holdings LLC decreased their stake in American States Water during the third quarter by 25.0%. This suggests that the hedge fund may have a less optimistic view on the company’s future performance. This could be due to various factors such as changes in market conditions, company-specific issues, or a difference in investment strategy.
Investors should keep an eye on American States Water’s financial results and market trends to determine if the company’s stock is a good investment opportunity. Further analysis is necessary to fully understand the reasoning behind Allspring’s decision and its potential impact on the company’s stock.
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