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    American Water Works Company Inc (AWK)

    Q3 2023 Summary

    Published Jan 4, 2025, 1:15 AM UTC
    Initial Price$142.51July 1, 2023
    Final Price$123.83October 1, 2023
    Price Change$-18.68
    % Change-13.11%
    • Dilution Risk Due to Planned Equity Issuances: The company plans to issue an incremental $700 million of equity in its 2024-2028 financing plan, which could dilute existing shareholders. This is in addition to the $1.7 billion equity issued earlier in the year and $1 billion convertible debt.
    • Increased Tax Expenses from Corporate AMT: Due to the Inflation Reduction Act, the company expects to become subject to the corporate alternative minimum tax in the coming years, which could increase tax expenses and impact net income.
    • Higher Leverage from Increased Debt Financing: The company anticipates $1.7 billion of additional debt to fund its increased capital expenditures, leading to higher leverage and potential pressure on credit metrics.