Why Essential Utilities Stock Is Volatile Wednesday

Essential Utilities Inc (NYSE: WTRG) shares are trading higher by 1.40% to $42.07 Wednesday afternoon. The stock is trading higher during Wednesday's session and off the session low of $40.64 following a short sell investment opinion from Spruce Point Capital Management.

Among several points in the report, Spruce Point says the investment manager believes that Essential Utilities is at "the declining phase of its aggressive roll-up growth strategy after completing the levered acquisition of Peoples Natural Gas in March 2020."

Spruce Point added that the investment manager believes that Essential Utilities is "highly likely to fail meeting its 2023 earnings targets."

Spruce Point additionally criticized the company for having too many executives and leaders without water or natural gas industry experience.

Traders and investors interested in reading the full report can do so here.

According to data from Benzinga Pro, WTRG has a 52-week high of $52.62 and a 52-week low of $38.50.