Bank of America Begins Coverage on Select Water Solutions (NYSE:WTTR)

Key Points

• Bank of America initiated coverage on Select Water Solutions with a buy rating and a $22 price target, implying about 21.6% upside from the prior close.
• Other analysts were also upbeat: the stock now has a consensus buy rating and an average price target of $22.40, with several firms raising targets or upgrading the shares.
• Select Water Solutions reported better-than-expected quarterly earnings, posting $0.08 EPS versus the $0.06 estimate and revenue of $365.96 million, while insider selling and strong institutional ownership were also noted.

Stock analysts at Bank of America began coverage on shares of Select Water Solutions (NYSE:WTTR - Get Free Report) in a report issued on Friday,Benzinga reports. The brokerage set a "buy" rating and a $22.00 price target on the stock. Bank of America's price target suggests a potential upside of 21.63% from the stock's previous close.

Several other research firms have also commented on WTTR. Piper Sandler increased their target price on shares of Select Water Solutions from $16.00 to $21.00 and gave the company an "overweight" rating in a report on Monday, May 18th. Zacks Research raised shares of Select Water Solutions from a "hold" rating to a "strong-buy" rating in a report on Monday. Citigroup raised their price target on shares of Select Water Solutions from $18.00 to $24.00 and gave the stock a "buy" rating in a report on Tuesday, May 12th. Northland Securities set a $21.00 price target on shares of Select Water Solutions in a report on Thursday, May 7th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Select Water Solutions in a report on Wednesday, April 8th. Two research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Buy" and an average price target of $22.40.

Select Water Solutions Price Performance

WTTR stock opened at $18.09 on Friday. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.76 and a current ratio of 1.92. Select Water Solutions has a 52 week low of $7.86 and a 52 week high of $20.48. The firm's fifty day moving average is $16.52 and its 200 day moving average is $13.45. The firm has a market cap of $2.50 billion, a P/E ratio of 86.13 and a beta of 0.99.

Select Water Solutions (NYSE:WTTR - Get Free Report) last released its earnings results on Tuesday, May 5th. The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.06 by $0.02. Select Water Solutions had a net margin of 1.54% and a return on equity of 2.21%. The company had revenue of $365.96 million for the quarter, compared to analyst estimates of $344.63 million. During the same quarter last year, the firm earned $0.08 EPS. The firm's quarterly revenue was down 2.2% compared to the same quarter last year. Research analysts predict that Select Water Solutions will post 0.29 earnings per share for the current year.

Insider Activity

In other news, Director Richard Alan Burnett sold 45,316 shares of the firm's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $18.74, for a total value of $849,221.84. Following the completion of the sale, the director directly owned 71,578 shares of the company's stock, valued at approximately $1,341,371.72. This trade represents a 38.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO Michael Skarke sold 20,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $17.78, for a total transaction of $355,600.00. Following the completion of the sale, the chief operating officer directly owned 360,738 shares of the company's stock, valued at approximately $6,413,921.64. This represents a 5.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 222,010 shares of company stock worth $3,925,971 in the last quarter. Insiders own 6.20% of the company's stock.

Institutional Investors Weigh In On Select Water Solutions

Several institutional investors and hedge funds have recently modified their holdings of the stock. Barclays PLC increased its stake in Select Water Solutions by 0.6% during the 4th quarter. Barclays PLC now owns 147,581 shares of the company's stock valued at $1,553,000 after purchasing an additional 857 shares in the last quarter. Inspire Investing LLC increased its stake in Select Water Solutions by 1.9% during the 4th quarter. Inspire Investing LLC now owns 55,271 shares of the company's stock valued at $581,000 after purchasing an additional 1,023 shares in the last quarter. ProShare Advisors LLC increased its stake in Select Water Solutions by 8.4% during the 4th quarter. ProShare Advisors LLC now owns 17,299 shares of the company's stock valued at $182,000 after purchasing an additional 1,336 shares in the last quarter. Quantinno Capital Management LP increased its stake in Select Water Solutions by 3.5% during the 1st quarter. Quantinno Capital Management LP now owns 42,180 shares of the company's stock valued at $645,000 after purchasing an additional 1,438 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co increased its stake in Select Water Solutions by 2.5% during the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 64,258 shares of the company's stock valued at $686,000 after purchasing an additional 1,541 shares in the last quarter. 81.73% of the stock is owned by hedge funds and other institutional investors.

About Select Water Solutions

Select Water Solutions, Inc, headquartered in Houston, Texas, is a water management services provider primarily serving the oil and gas industry. Formerly operating under the name Select Energy Services, the company rebranded to reflect its core focus on water treatment, recycling and disposal. Since its inception in 2016, Select Water Solutions has expanded to key U.S. basins—including the Permian, Eagle Ford, Marcellus and DJ Basin—and maintains strategic operations in select international regions.

The company's offerings span the full water lifecycle, from produced water gathering and transportation to advanced treatment and beneficial reuse.

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