WTRG Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
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Not a good buy right now. Price action is soft (bearish MACD, trading below the pivot), options flow is mixed (calls dominate open interest but puts dominate volume), and the most recent major analyst action is a double-downgrade with a $38 target below the current $38.79. While fundamentals are improving and hedge funds are buying, the current setup does not offer a strong, urgent entry for an impatient buyer.
Trend/price context: WTRG closed at 38.79, slightly under the pivot (39.088). Momentum: MACD histogram is negative (-0.0795) and worsening (negatively expanding), which leans bearish in the near term. RSI(6) at ~45 is neutral-to-slightly weak (no oversold bounce signal). Moving averages are converging, consistent with consolidation but with downside momentum currently winning. Levels: Near-term support sits at S1 38.328 (then S2 37.859). Resistance is R1 39.849 and R2 40.318. For an immediate buy, it would be stronger if price reclaimed and held above ~39.10–39.85; otherwise the risk is a quick drift into the 38.33/37.86 support zone.
Hedge fund activity: Buying surged (+4551.57% QoQ), a meaningful vote of confidence. Financial momentum: 2025/Q3 showed strong YoY growth in revenue (+9.58%), net income (+32.67%), and EPS (+32%). Potential catalyst ahead: Earnings on 2026-02-25 (after hours) with Street EPS est. 0.36 could reset sentiment if rate cases/operations track well.
Technical momentum is currently bearish (MACD negative and expanding) and price is below the key pivot (39.088), increasing near-term downside risk toward 38.33/37.86 supports. Analyst overhang: Barclays double-downgraded to Underweight with a $38 PT (below spot) and highlighted 2026 political/affordability dynamics making merger proceedings and rate cases ‘un-timely.’ Options near-term caution: put-heavy volume despite call-heavy OI suggests traders are hedging rather than aggressively adding upside right now. No fresh positive news flow in the last week to offset the downgrade narrative.
Latest quarter: 2025/Q3. Revenue rose to 476.97M (+9.58% YoY). Net income increased to 92.08M (+32.67% YoY). EPS grew to 0.33 (+32.00% YoY). Profitability mix: gross margin slipped to 72.83% (-2.03% YoY), a modest negative, but overall earnings growth was strong versus last year.
Recent trend is mixed but tilted cautious at the margin due to the most impactful note: (1) 2025-12-17 Barclays double downgraded to Underweight from Overweight and cut PT to $38 from $43, citing continued negative view on water multiples into 2026 and regulatory/political timing risks. (2) 2025-12-03 Northcoast upgraded to Buy from Neutral with a $42 PT. Wall Street pros: regulated utility cash-flow visibility and recent EPS strength. Cons: valuation/multiple pressure in the sector and heightened regulatory/affordability sensitivity in 2026 that could slow favorable outcomes.
