Insider Activity Report: American States Water (AWR)

Waterworks

Mary Hopkins, a director at American States Water (AWR), recently bought 560 shares. The buy increased her position by 18%, and came to a total cost of $40,057.

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  • The buy comes after another director bought 640 shares, paying $49,677 to do so. Other directors have been buyers of shares going back to last August. There has only been one insider sale, also from a director, over the past year.

    Overall, American States Water insiders own 0.8% of shares.

    The water utility is down 20% over the past year. That’s about in-line with the company’s operating performance, with revenues down 16%, and earnings down by one-third.

    Shares trade at about 24 times earnings, a slight premium to the overall market. As with many utility companies, regulation and population growth trends tend to lead to slow, but steady, growth over time.

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  • Action to take: The stock has been trending higher since late April, and shares could have more upside in the months ahead.

    American States Water is a dividend growth player, so long-term investors may want to look at building a stake here. Shares currently pay a 2.4% yield. While not a high yield, increased dividend payouts over time mean a larger stream of cash.

    For traders, the September $80 calls, last trading for about $1.15, could see mid-double-digit returns from a further rally in the months ahead.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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