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American Water Announces Acquisition of Nexus Assets

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The latest update is out from American Water ( (AWK) ).

On May 19, 2025, American Water Works Company, Inc. announced an agreement to acquire water and wastewater system assets from Nexus Regulated Utilities, LLC, a subsidiary of Nexus Water Group, Inc., for approximately $315 million. This acquisition, expected to close by August 2026, will expand American Water’s footprint by nearly 47,000 customer connections across eight states, enhancing its growth strategy and operational scale. The transaction requires regulatory approvals and is anticipated to support further growth opportunities and professional development for local employees.

The most recent analyst rating on (AWK) stock is a Buy with a $164.00 price target. To see the full list of analyst forecasts on American Water stock, see the AWK Stock Forecast page.

Spark’s Take on AWK Stock

According to Spark, TipRanks’ AI Analyst, AWK is a Outperform.

American Water presents a strong investment case with robust financial performance, supported by solid revenue growth and profit margins. The recent earnings call underscores strategic progress and a positive outlook, highlighted by earnings and dividend growth. However, the high leverage and negative free cash flow pose risks, and the stock’s current valuation appears somewhat high. Technical indicators suggest a neutral trend, with limited momentum in the short term.

To see Spark’s full report on AWK stock, click here.

More about American Water

American Water (NYSE: AWK) is the largest regulated water and wastewater utility company in the United States, providing services to over 14 million people across 14 states and 18 military installations. Established in 1886, the company is known for delivering safe, clean, reliable, and affordable water and wastewater services, leveraging its national scale and expertise to benefit customers, employees, investors, and other stakeholders.

Average Trading Volume: 1,672,977

Technical Sentiment Signal: Strong Buy

Current Market Cap: $27.8B

Find detailed analytics on AWK stock on TipRanks’ Stock Analysis page.

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