Essential Utilities Sets February Vote on All-Stock Merger With American Water

New activity is brewing for Essential Utilities ( (WTRG) ). The company has submitted a Form DEFM14A to the SEC, indicating an upcoming shareholder vote. This form gives shareholders all the information they need to develop an informed vote. Read on to learn more about the proposed company action.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential On October 26, 2025, American Water Works Company, Inc. and Essential Utilities, Inc. signed an all‑stock Agreement and Plan of Merger under which a wholly owned American Water subsidiary will merge with Essential, leaving Essential as a wholly owned subsidiary of American Water. At the effective time of the merger, each outstanding share of Essential common stock (other than certain excluded shares) will be converted into 0.305 shares of American Water common stock, a fixed exchange ratio that will leave former Essential shareholders owning about 31% and existing American Water shareholders about 69% of the combined company, based on share counts as of December 29, 2025. The boards of both companies have unanimously approved the transaction and are urging shareholders to back it at virtual special meetings scheduled for February 10, 2026, with completion contingent on American Water shareholders approving the share issuance and Essential shareholders approving the merger agreement. If approved, the deal would create a larger, consolidated water and wastewater utility player, potentially reshaping competitive dynamics and regulatory oversight in the U.S. water utilities sector while giving Essential investors an equity stake in the larger American Water platform. The most recent analyst rating on (WTRG) stock is a Sell with a $38.00 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 Neutral. The overall score reflects strong corporate events and solid financial performance, offset by bearish technical indicators. The merger with American Water Works is a significant positive, but technical weaknesses and cash flow concerns temper the outlook. To see Spark’s full report on WTRG stock, click here. More about Essential Utilities Essential Utilities, Inc. is a U.S.-based regulated utilities company that provides water, wastewater and related services, with its common stock listed on the New York Stock Exchange under the symbol “WTRG.” The company operates in the essential infrastructure sector, serving residential, commercial and municipal customers in regulated territories and focusing on long-term, stable returns typical of utility franchises. Average Trading Volume: 2,076,433 Technical Sentiment Signal: Strong Buy Current Market Cap: $10.95B