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Essential Utilities Merges with American Water Works

Story Highlights
  • Essential Utilities and American Water entered a merger agreement on October 26, 2025.
  • The merger aims to enhance efficiency, expand reach, and support long-term growth targets.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Essential Utilities Merges with American Water Works

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The latest announcement is out from Essential Utilities ( (WTRG) ).

On October 26, 2025, Essential Utilities, Inc. and American Water Works Company, Inc. entered into an Agreement and Plan of Merger, with Essential becoming a wholly owned subsidiary of American Water. The merger, unanimously approved by both companies’ boards, aims to create a leading U.S. water and wastewater utility with a combined market capitalization of approximately $40 billion. This strategic move is expected to enhance operational efficiency, expand customer reach, and provide long-term growth opportunities for employees while maintaining commitments to community support and water affordability. The merger is also anticipated to be accretive to American Water’s earnings per share in the first year post-transaction, supporting long-term growth targets for earnings and dividends.

The most recent analyst rating on (WTRG) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on Essential Utilities stock, see the WTRG Stock Forecast page.

Spark’s Take on WTRG Stock

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

Essential Utilities’ strong financial performance and positive earnings call are the most significant factors, reflecting robust profitability and strategic investments. However, technical indicators suggest neutral momentum, and cash flow management requires attention. The valuation is fair, supported by a reasonable P/E ratio and attractive dividend yield.

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

More about Essential Utilities

Essential Utilities, Inc. is a regulated U.S. water and wastewater utility company that focuses on providing essential services such as safe, clean, reliable, and affordable water and wastewater services. The company has a strong emphasis on sustainability, innovation, and resilience, serving millions of connections across multiple states.

Average Trading Volume: 1,971,566

Technical Sentiment Signal: Buy

Current Market Cap: $11.56B

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

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