Middlesex Water Co announces at-the-market equity offering

Middlesex Water Company (NASDAQ:MSEX), a provider of water and wastewater services with a market capitalization of $1.06 billion and impressive year-to-date returns of 13.32%, announced today the entry into an ATM Equity Offering Sales Agreement to sell common stock shares with an aggregate offering price of up to $110 million. According to InvestingPro analysis, the company currently appears fairly valued based on its Fair Value calculations. The New Jersey-based utility company disclosed the agreement with BofA Securities, Inc., Robert W. Baird & Co. Incorporated, and Janney Montgomery Scott LLC, acting as sales agents.

The sales agreement enables Middlesex to sell its shares from time to time at prevailing market prices on the Nasdaq Global Select Market. The company has indicated that the net proceeds will be used to fund capital expenditures, purchase and maintain plant equipment, and for other general corporate purposes.

Under the terms of the agreement, the sales agents will receive a commission of up to 2.0% of the gross proceeds from each sale. Middlesex is not obligated to sell any specific number of shares and may terminate the agreement at any time. The offering is made under Middlesex’s effective shelf registration statement filed with the SEC on May 12, 2025.

The execution of this agreement is in line with Middlesex’s strategic initiatives to support its growth and operational needs. The company has filed a prospectus supplement with the SEC in connection with the offering.

The legal opinion as to the legality of the shares being offered is provided by Saul Ewing LLP and is included as an exhibit to the company’s current report on Form 8-K.

This report does not constitute an offer to sell or a solicitation of an offer to buy the securities, and any sales will be made only by means of the prospectus supplement and related prospectus.

In other recent news, Middlesex Water has seen its stock rating upgraded by analysts at Baird, moving from a Neutral to an Outperform rating with a new price target set at $61.00. This upgrade comes on the heels of a strong fourth-quarter performance, where the company exceeded expectations in significant financial metrics, including regulated capital expenditure spending. The company’s annual report revealed long-term growth estimates for capital investment that surpassed Baird’s forecasts, despite a projected decrease in total capital expenditures for 2024 compared to previous years. Analysts noted that Middlesex Water, along with its industry peers, continues to maintain spending trajectories despite challenges such as rising capital costs and PFAS contamination issues. Baird expressed optimism for the water sector, suggesting that current market conditions offer an attractive opportunity for investors in Middlesex Water. The positive outlook also highlights the company’s long-term investment strategy and its resilience in navigating industry challenges. With the new price target, Baird signals confidence in the value Middlesex Water provides to its shareholders. As these developments unfold, investors will be closely monitoring Middlesex Water’s performance.

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