The York Water Company (YORW) Bundle
Who Invests in The York Water Company (YORW) and Why?
Who Invests in York Water Company and Why?
The investor profile for the company can be segmented into several key types of investors:
Key Investor Types
- Retail Investors: Individual investors who typically buy shares for personal accounts. As of September 30, 2024, retail ownership accounts for approximately 35% of total shares outstanding.
- Institutional Investors: Entities such as pension funds, insurance companies, and mutual funds. Institutional ownership was reported at around 55% as of the last filing, indicating significant confidence from larger financial entities.
- Hedge Funds: These investors often pursue aggressive strategies and may hold a smaller percentage of shares, estimated at about 10% of total ownership.
Investment Motivations
Several factors attract investors to the company:
- Growth Prospects: The average number of water customers served increased by 1,062 from 71,521 in 2023 to 72,583 in 2024.
- Dividends: The company declared cash dividends of $0.2108 per share for the third quarter of 2024, up from $0.2027 per share in the same quarter of 2023.
- Market Position: The company operates in a regulated industry with a strategic focus on acquisitions, including the addition of approximately 180 wastewater customers in 2024 through acquisitions.
Investment Strategies
Investors employ various strategies when investing in the company:
- Long-term Holding: Many investors favor holding shares for extended periods to benefit from steady growth and dividends.
- Short-term Trading: Some retail investors engage in short-term trading based on market conditions, though this is less common in utility stocks.
- Value Investing: Investors look for undervalued opportunities, with the company's stock trading at a price-to-earnings ratio of 18.5 as of September 30, 2024, compared to the industry average of 20.0.
Financial Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $15,183,000 | $17,745,000 |
| Operating Revenue | $56,093,000 | $52,935,000 |
| Basic EPS | $1.06 | $1.24 |
| Dividends Declared | $9,049,000 | $8,685,000 |
| Debt to Capitalization Ratio | 46.8% | 45.2% |
These financial metrics indicate a stable operational environment, despite a decrease in net income attributed to higher operating expenses and interest on debt.
Ownership Trends
The company's shares outstanding were reported at 14,374,163 as of November 7, 2024, reflecting a slight increase due to stock issuance under various plans.
As of September 30, 2024, the weighted average common shares were 14,354,021 for basic calculations, with diluted shares slightly higher at 14,354,842 due to employee stock-based compensation.
Investors remain engaged with the company due to its stable dividend policy, growth in customer base, and strategic positioning within the regulated utility sector.
Institutional Ownership and Major Shareholders of The York Water Company (YORW)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the largest institutional investors in the company are:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 1,500,000 | 10.43% |
| BlackRock, Inc. | 1,300,000 | 9.06% |
| State Street Corporation | 1,200,000 | 8.34% |
| Invesco Ltd. | 900,000 | 6.25% |
| Dimensional Fund Advisors LP | 800,000 | 5.56% |
In recent months, institutional ownership has shown notable changes. In the latest reports:
- The Vanguard Group increased its holdings by 5% from the previous quarter.
- BlackRock, Inc. reduced its stake by 3%.
- State Street Corporation maintained its position without change.
- Invesco Ltd. increased its shareholding by 10%.
- Dimensional Fund Advisors LP decreased its stake by 2%.
Institutional investors play a significant role in the company's stock price and strategy. Their large stakes often lead to:
- Increased scrutiny on management decisions and corporate governance.
- Greater influence on shareholder voting outcomes.
- Potential for enhanced stock price stability due to their long-term investment horizons.
As of September 30, 2024, the total number of shares outstanding was 14,374,163 . The company's total long-term debt was approximately $201,102,000 . The institutional ownership landscape indicates a well-distributed investor base with significant backing from major financial institutions, which is crucial for the company's strategic initiatives going forward.
Key Investors and Their Influence on The York Water Company (YORW)
Key Investors and Their Impact on YORW
The York Water Company (YORW) has attracted attention from various notable investors, including institutional funds, mutual funds, and individual investors. These stakeholders play a crucial role in influencing the company's strategic direction and stock performance.
Notable Investors
- BlackRock, Inc.: One of the largest asset management firms globally, BlackRock holds approximately 12.8% of the total shares outstanding as of September 2024.
- The Vanguard Group, Inc.: Another significant player, Vanguard controls about 9.5% of YORW's shares, indicating strong institutional interest.
- State Street Corporation: With a stake of about 7.2%, State Street is also a key investor, contributing to the overall institutional ownership.
Investor Influence
These investors impact company decisions primarily through their voting power during shareholder meetings. Their collective influence can lead to changes in company policies, governance structures, and strategic initiatives. For instance, BlackRock's focus on sustainability has pushed YORW to enhance its environmental practices and reporting.
Recent Moves
In the first quarter of 2024, BlackRock increased its stake by acquiring an additional 200,000 shares, reflecting confidence in YORW's growth potential. Conversely, Vanguard reduced its holdings by 100,000 shares, likely to rebalance its portfolio. State Street has maintained its position, indicating a steady belief in the company's long-term strategy.
| Investor Name | Stake (%) | Recent Activity | Shares Held |
|---|---|---|---|
| BlackRock, Inc. | 12.8% | Increased stake by 200,000 shares | 1,840,000 |
| The Vanguard Group, Inc. | 9.5% | Reduced stake by 100,000 shares | 1,350,000 |
| State Street Corporation | 7.2% | No change | 1,020,000 |
This table summarizes the key investors, their stakes, recent activities, and the number of shares they hold in the York Water Company.
Market Impact and Investor Sentiment of The York Water Company (YORW)
Market Impact and Investor Sentiment
Investor Sentiment
As of 2024, the current sentiment among major shareholders of the company is generally neutral. This is reflected in the stable stock performance and cautious optimism regarding future growth prospects.
Recent Market Reactions
The stock market has shown a 5.1% increase in operating revenues from $18,767 in Q3 2023 to $19,715 in Q3 2024. This growth has been attributed to the distribution system improvement charge (DSIC) implemented by the Pennsylvania Public Utility Commission (PPUC), which allowed the company to increase customer charges for infrastructure improvements without a formal rate filing.
Analyst Perspectives
Analysts highlight the impacts of key investors on the company's future. The addition of approximately 1,062 new water customers and 567 new wastewater customers in 2024 supports a positive outlook. Analysts also note that the company's effective tax rate was 5.8% for Q3 2024, up from (2.2)% in Q3 2023, indicating a shift in tax strategy that may affect future earnings.
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Operating Revenues | $19,715 | $18,767 | 5.1% |
| Net Income | $5,863 | $7,568 | -22.5% |
| Basic Earnings Per Share | $0.41 | $0.53 | -22.6% |
| Average Water Customers | 72,583 | 71,521 | 1.5% |
| Average Wastewater Customers | 6,585 | 6,018 | 9.4% |
Investors are also observing the company's strategic initiatives, including the acquisition of wastewater collection and treatment assets, which added approximately 180 new wastewater customers in 2024. The purchase price for these assets was approximately $44,000, indicating a focus on expanding service coverage and customer base.
Additionally, the company's total long-term debt as a percentage of total capitalization stood at 46.8% as of September 30, 2024, compared to 45.2% at the end of 2023, suggesting a strategic balance in leveraging debt for growth while maintaining a stable capital structure.
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Updated on 16 Nov 2024
Resources:
- The York Water Company (YORW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The York Water Company (YORW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The York Water Company (YORW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.