Sable Offshore (NYSE:SOC) Shares Gap Up - Time to Buy?

Key Points

• Sable Offshore shares opened higher, rising from a prior close of $3.29 to $3.51 and last trading near $3.67 on volume of about 1.35 million shares.
• Analyst sentiment is mixed: the stock has an average “Hold” rating and an $11.40 price target, with recent targets ranging from $8 to $10. Five analysts rate it a Buy, while two rate it a Sell.
• The company reported a significant quarterly miss, posting a $0.42 loss per share versus expectations for $0.37 in earnings, while revenue of $137.13 million fell well short of the $237.65 million estimate. Sable is attempting to restart its inactive Santa Ynez offshore assets.

Shares of Sable Offshore Corp. (NYSE:SOC - Get Free Report) gapped up prior to trading on Friday. The stock had previously closed at $3.29, but opened at $3.51. Sable Offshore shares last traded at $3.6720, with a volume of 1,354,181 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on SOC. Wall Street Zen raised shares of Sable Offshore from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 30th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sable Offshore in a research note on Tuesday, July 21st. Stifel Nicolaus began coverage on Sable Offshore in a report on Thursday, September 10th. They set a "buy" rating and a $8.00 target price on the stock. Jefferies Financial Group set a $9.00 price target on Sable Offshore in a research report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. started coverage on Sable Offshore in a research report on Friday. They issued an "overweight" rating and a $10.00 price objective on the stock. Five research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Sable Offshore presently has an average rating of "Hold" and an average price target of $11.40.

Sable Offshore Stock Performance

The firm has a market cap of $690.35 million, a PE ratio of -1.10 and a beta of -0.13. The company has a debt-to-equity ratio of 1.85, a current ratio of 0.24 and a quick ratio of 0.18. The stock has a 50-day moving average price of $4.51 and a 200 day moving average price of $9.18.

Sable Offshore (NYSE:SOC - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.42) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.37 by ($0.79). The business had revenue of $137.13 million during the quarter, compared to analysts' expectations of $237.65 million. Research analysts forecast that Sable Offshore Corp. will post -2.18 earnings per share for the current year.

Institutional Investors Weigh In On Sable Offshore

Several hedge funds have recently modified their holdings of SOC. NewEdge Advisors LLC grew its holdings in Sable Offshore by 543.4% in the second quarter. NewEdge Advisors LLC now owns 14,804 shares of the company's stock valued at $46,000 after purchasing an additional 12,503 shares during the period. IFP Advisors Inc raised its stake in Sable Offshore by 15,098,500.0% during the second quarter. IFP Advisors Inc now owns 150,986 shares of the company's stock worth $465,000 after purchasing an additional 150,985 shares during the period. Mraz Amerine & Associates Inc. boosted its holdings in shares of Sable Offshore by 30.3% in the 2nd quarter. Mraz Amerine & Associates Inc. now owns 17,754 shares of the company's stock valued at $55,000 after purchasing an additional 4,125 shares during the last quarter. Odyssean LLC acquired a new position in shares of Sable Offshore in the 2nd quarter valued at $187,000. Finally, AXQ Capital LP grew its stake in shares of Sable Offshore by 25.6% during the 2nd quarter. AXQ Capital LP now owns 37,069 shares of the company's stock valued at $114,000 after buying an additional 7,552 shares during the period. 26.19% of the stock is owned by institutional investors and hedge funds.

About Sable Offshore

Sable Offshore Corp. is an independent energy company focused on the development and production of oil and natural gas from offshore assets in the United States. Its principal operations are centered on the Santa Ynez Unit (SYU), located in federal waters off the coast of California.

The company's Santa Ynez assets include offshore production platforms, subsea infrastructure, pipelines and the Las Flores Canyon onshore processing and storage facility. Sable is working to restore and restart production from the system, which has been inactive since a pipeline incident led to the suspension of operations in 2015.

Sable acquired the Santa Ynez assets from ExxonMobil and became a publicly traded company through a business combination with Flame Acquisition Corp.

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