Form 4: AWK CEO Sells Shares for Tax Obligations

American Water Works CEO John C. Griffith reported the disposition of 3,226 common shares to cover tax withholding obligations at a price of $129.13 per share.

Summary

• John C. Griffith, President and CEO of American Water Works Company, Inc. (AWK), reported a transaction on January 31, 2026.
• The transaction involved the disposition of 3,226 shares of Common Stock.
• The shares were disposed of at a price of $129.13 per share.
• The transaction code 'F' indicates a disposition to the issuer to satisfy tax withholding obligations.
• Following this transaction, Mr. Griffith beneficially owns 20,736 shares of Common Stock.
• The reported beneficial ownership includes approximately 162 shares acquired through the automatic reinvestment of cash dividends, which are exempt from Section 16 reporting under Rule 16a-11.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral to slightly positive event. The share disposition is for tax purposes, a common occurrence, and the executive continues to hold a significant stake, augmented by dividend reinvestment.

Positives

• The CEO's beneficial ownership still stands at a substantial 20,736 shares after the transaction.
• Approximately 162 shares were acquired through dividend reinvestment, indicating continued participation in the company's equity growth.

Negatives

• The disposition of 3,226 shares, even for tax purposes, reduces the direct beneficial ownership of the CEO in the company.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that routine tax-related dispositions by executives are common and generally not indicative of a change in sentiment towards the company's long-term prospects. Such transactions are typically a standard part of equity compensation plans.

Stakeholder Impact

• Shareholders: Minimal direct impact as this is a routine tax-related transaction by an insider, not indicative of a change in company fundamentals or executive confidence.

Key Dates

Recommendation

The transaction is a routine disposition of shares to cover tax withholding obligations, which is a common practice for executives receiving equity compensation. It does not reflect a change in the executive's investment thesis or the company's fundamentals, thus a 'hold' recommendation is appropriate.

Keywords

American Water Works, AWK, Form 4, Insider Transaction, Stock Sale, CEO, John C. Griffith, Beneficial Ownership, Tax Withholding