Select Water Solutions, Inc. $WTTR Shares Sold by Penn Capital Management Company LLC

Key Points

• Penn Capital reduced its Select Water Solutions stake by 6.9%, selling 84,296 shares in the third quarter; it still held 1.14 million shares, valued at about $22.6 million. Institutional investors collectively own 81.73% of the company.
• Quarterly revenue rose 27.9% year over year to $412.2 million, beating estimates, but earnings per share of $0.16 fell short of the $0.18 consensus.
• The company declared a quarterly dividend of $0.07 per share, equivalent to a 1.9% annualized yield. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $24.57.

Penn Capital Management Company LLC lessened its stake in shares of Select Water Solutions, Inc. (NYSE:WTTR - Free Report) by 6.9% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,137,794 shares of the company's stock after selling 84,296 shares during the quarter. Select Water Solutions comprises approximately 1.6% of Penn Capital Management Company LLC's portfolio, making the stock its 8th biggest position. Penn Capital Management Company LLC owned about 0.82% of Select Water Solutions worth $22,559,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the stock. Dimensional Fund Advisors LP increased its stake in Select Water Solutions by 2.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,550,309 shares of the company's stock valued at $100,220,000 after buying an additional 185,821 shares during the period. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT lifted its stake in shares of Select Water Solutions by 30.4% in the 3rd quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,330,000 shares of the company's stock worth $26,321,000 after acquiring an additional 310,000 shares during the period. Punch & Associates Investment Management Inc. lifted its stake in shares of Select Water Solutions by 1.8% in the 1st quarter. Punch & Associates Investment Management Inc. now owns 1,528,895 shares of the company's stock worth $23,392,000 after acquiring an additional 27,704 shares during the period. Empowered Funds LLC lifted its stake in shares of Select Water Solutions by 6.2% in the 1st quarter. Empowered Funds LLC now owns 574,438 shares of the company's stock worth $8,789,000 after acquiring an additional 33,614 shares during the period. Finally, Alps Advisors Inc. lifted its stake in shares of Select Water Solutions by 16.1% in the 3rd quarter. Alps Advisors Inc. now owns 355,798 shares of the company's stock worth $7,041,000 after acquiring an additional 49,367 shares during the period. Hedge funds and other institutional investors own 81.73% of the company's stock.

Select Water Solutions Price Performance

Select Water Solutions stock opened at $15.08 on Tuesday. The company has a market cap of $2.09 billion, a P/E ratio of 53.85 and a beta of 0.98. Select Water Solutions, Inc. has a one year low of $9.28 and a one year high of $22.55. The business has a fifty day moving average of $19.32 and a two-hundred day moving average of $17.48. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.40 and a current ratio of 1.58.

Select Water Solutions (NYSE:WTTR - Get Free Report) last posted its quarterly earnings results on Monday, November 9th. The company reported $0.16 earnings per share for the quarter, missing analysts' consensus estimates of $0.18 by ($0.02). The company had revenue of $412.19 million for the quarter, compared to analyst estimates of $397.96 million. Select Water Solutions had a return on equity of 3.11% and a net margin of 2.24%. The business's revenue for the quarter was up 27.9% compared to the same quarter last year. During the same period last year, the company earned $0.03 earnings per share. As a group, analysts predict that Select Water Solutions, Inc. will post 0.55 earnings per share for the current fiscal year.

Select Water Solutions Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 13th will be issued a dividend of $0.07 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $0.28 dividend on an annualized basis and a yield of 1.9%. Select Water Solutions's payout ratio is currently 100.00%.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. JPMorgan Chase & Co. assumed coverage on shares of Select Water Solutions in a report on Friday, August 21st. They issued an "overweight" rating and a $24.00 target price on the stock. Bank of America raised their price objective on shares of Select Water Solutions from $24.00 to $28.00 and gave the company a "buy" rating in a research report on Wednesday, September 30th. Weiss Ratings restated a "hold (c)" rating on shares of Select Water Solutions in a research report on Friday, October 2nd. Wall Street Zen lowered Select Water Solutions from a "buy" rating to a "hold" rating in a report on Saturday, October 3rd. Finally, TD Cowen cut Select Water Solutions to a "neutral" rating in a research report on Friday, August 21st. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $24.57.

Key Headlines Impacting Select Water Solutions

Here are the key news stories impacting Select Water Solutions this week:

• Positive Sentiment: Revenue rose 28% year over year to $412 million, topping estimates of about $398 million. Net income was $23 million, and adjusted EBITDA increased 57% to $93 million. Company earnings release
• Positive Sentiment: Water Infrastructure delivered record quarterly revenue of $110 million, up 40% year over year, pointing to continued growth in a key business area. Q3 infrastructure revenue report
• Positive Sentiment: After quarter-end, Select closed its acquisition of Pilot Water Solutions, expanding its water-midstream presence in the Delaware Basin. Company earnings release
• Neutral Sentiment: The company completed a recapitalization and sold a majority interest in Peak Rentals during the quarter; the longer-term financial impact will depend on how it deploys the proceeds and the resulting business mix. Company earnings release
• Negative Sentiment: EPS was $0.16, below consensus estimates of roughly $0.17–$0.18. The shortfall may weigh on sentiment despite the revenue beat and substantial year-over-year improvement from $0.03 per share a year earlier. Q3 earnings estimate report

About Select Water Solutions

Select Water Solutions, Inc provides water-management and chemical services to oil and natural gas exploration and production companies. Its services support drilling, completions and ongoing production, with a focus on managing water used in and generated by energy operations.

The company's offerings include water sourcing, transfer, treatment, recycling and disposal, as well as water infrastructure such as pipelines and related facilities. It also supplies specialty chemicals and technical services designed for oilfield operations.

Formerly known as Select Energy Services, the company serves customers in major U.S.

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