Is H2O America Stock a Buy After Investment Firm Ausbil Initiated a Position Worth $2.6 Million?
Key Points
Ausbil acquired 53,119 shares with a trade value of $2,602,300 in the fourth quarter of 2025.
The quarter-end position value increased by $2,602,300, reflecting the new share purchase.
The transaction represented a 1.48% increase in 13F reportable assets under management.
The H2O America position is below the fund’s top five holdings by size.
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What happened
According to an SEC filing dated January 13, 2026, Ausbil Investment Management Ltd reported a new position in H2O America (NASDAQ:SJW) with the purchase of 53,119 shares. The transaction value was $2.60 million, calculated using the average closing price for the quarter. The value of the position at quarter-end stood at $2,602,300, capturing both the share acquisition and any intervening price movement.
What else to know
This is a new position, making up 1.48% of the fund’s reportable U.S. equity assets as of December 31, 2025.
Top holdings after the filing:
- NYSE:NEE: $10.42 million (5.9% of AUM)
- NASDAQ:CSX: $9.47 million (5.4% of AUM)
- NYSE:NSC: $7.60 million (4.3% of AUM)
- NYSE:ETR: $6.51 million (3.7% of AUM)
- NYSE:LNG: $6.46 million (3.7% of AUM)
As of January 12, 2026, shares were priced at $51.81, up 14.9% over the past year, lagging the S&P 500 by 3.91 percentage points.
Company/ETF overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $804.22 million |
| Net income (TTM) | $109.28 million |
| Dividend yield | 3.24% |
Company/ETF snapshot
- H2O America provides regulated water and wastewater utility services, including production, purification, distribution, and retail sales, as well as non-tariffed services such as system operations and maintenance agreements.
- It generates revenue primarily from water and wastewater service fees, supplemented by contracted services and ancillary offerings, such as antenna site leases and protection plans.
- The company serves water to approximately 232,000 connections in California (about one million people), 142,000 connections in Connecticut and Maine (serving about 463,000 people), and 29,000 connections in Texas (serving about 88,000 people). It also provides approximately 3,000 wastewater connections in Southbury, Connecticut, and approximately 1,000 wastewater connections in Texas.
H2O America is a regulated water utility serving over one million people across multiple states, with a focus on stable, recurring revenue streams from essential water and wastewater services.
What this transaction means for investors
Ausbil Investment Management's purchase of H2O America shares is noteworthy because it represented a new position in the water utility company. The buy makes sense given H2O America's business performance.
In the third quarter, H2O America delivered revenue of $240.6 million in the third quarter of 2025, an increase over the prior year's $225.1 million. This contributed to Q3 net income growing to $45.1 million, up from $38.7 million in 2024.
The company is also making acquisitions to expand its presence in Texas, which should boost revenue further. It also sports a robust dividend yield of 3.24%, which provides a source of passive income.
H2O America's stock has been on an upswing in early 2026, rising about 6% year-to-date through Jan. 13. Even so, its price-to-earnings (P/E) ratio of 16.6 is lower than it's been for the past five years. This suggests the utility company's shares are attractively-priced, and could be a factor in why Ausbil bought shares.
Given H2O America's sales growth, its impending expansion through acquisitions, and compelling P/E ratio, now looks like a good time to invest in the company.
Glossary
13F reportable assets: U.S. equity holdings that institutional investment managers must disclose quarterly to the SEC.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Quarter-end position value: The market value of a holding at the end of a financial quarter.
Initiated position: The first time an investor or fund acquires shares in a particular company.
Regulated utility: A company whose prices and operations are overseen by government agencies to protect consumers.
Non-tariffed services: Services provided by a utility that are not subject to government-set pricing.
Ancillary offerings: Additional services or products provided alongside a company's main business activities.
Connections: Individual service points, such as homes or businesses, receiving utility services.
Dividend yield: A financial ratio showing how much a company pays in dividends each year relative to its share price.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cheniere Energy and NextEra Energy. The Motley Fool has a disclosure policy.
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