Ready to Jump After Recent Trade: Evoqua Water Technologies Corp. (AQUA)

Evoqua Water Technologies Corp. (NYSE: AQUA) stock jumped 15.23% on Monday to $47.28 against a previous-day closing price of $41.03. With 18.48 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.62 million shares. During the session, the Pollution & Treatment Controls company that operates in wider Industrials sector, reached to the highest price of $47.53 whereas the lowest price it dropped to was $44.82. The 52-week range on AQUA shows that it touched its highest point at $48.05 and its lowest point at $30.44 during that stretch. It currently has a 1-year price target of $46.33. Beta for the stock currently stands at 1.76.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AQUA was up-trending over the past week, with a rise of 10.65%, but this was up by 21.79% over a month. Three-month performance surged to 39.59% while six-month performance rose 32.51%. The stock gained 20.67% in the past year, while it has gained 19.39% so far this year. A look at the trailing 12-month EPS for AQUA yields 0.58 with Next year EPS estimates of 1.11. For the next quarter, that number is 0.14. This implies an EPS growth rate of 40.30% for this year and 18.53% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 96.00%.

Float and Shares Shorts:

At present, 121.64 million AQUA shares are outstanding with a float of 120.44 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.6 million, which was 2.14% higher than short shares on Sep 14, 2022. In addition to Mr. Ronald C. Keating as the firm’s Pres, CEO & Director, Mr. Benedict J. Stas serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 103.28% of AQUA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 65.05% of AQUA, in contrast to 34.87% held by mutual funds. Shares owned by individuals account for 20.27%. As the largest shareholder in AQUA with 8.90% of the stake, The Vanguard Group, Inc. holds 10,840,986 shares worth 10,840,986. A second-largest stockholder of AQUA, BlackRock Fund Advisors, holds 6,539,701 shares, controlling over 5.37% of the firm’s shares. Invesco Advisers, Inc. is the third largest shareholder in AQUA, holding 5,471,391 shares or 4.49% stake. With a 3.04% stake in AQUA, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,700,358 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.58% of AQUA stock, is the second-largest Mutual Fund holder. It holds 3,138,695 shares valued at 124.29 million. iShares Russell 2000 ETF holds 2.15% of the stake in AQUA, owning 2,615,952 shares worth 103.59 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AQUA since 11 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AQUA analysts setting a high price target of $54.00 and a low target of $33.00, the average target price over the next 12 months is $46.33. Based on these targets, AQUA could surge 14.21% to reach the target high and fall by -30.2% to reach the target low. Reaching the average price target will result in a decline of -2.01% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AQUA will report FY 2023 earnings on 11/14/2023. Analysts have provided yearly estimates in a range of $1.03 being high and $0.84 being low. For AQUA, this leads to a yearly average estimate of $0.94. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Evoqua Water Technologies Corp. surprised analysts by $0.17 when it reported $0.49 EPS against a consensus estimate of $0.32. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.18 and the low estimate is $0.09. The average estimate for the next quarter is thus $0.14.

Summary of Insider Activity:

Insiders traded AQUA stock several times over the past three months with 8 Buys and 8 Sells. In these transactions, 100,541 shares were bought while 46,765 shares were sold. The number of buy transactions has increased to 33 while that of sell transactions has risen to 35 over the past year. The total number of shares bought during that period was 682,035 while 633,096 shares were sold.

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