Sable Offshore (NYSE:SOC) Shares Up 6.6% - Time to Buy?

Key Points

• Sable Offshore shares jumped 6.6% to $3.6250, although trading volume was 72% below the average session volume.
• Analyst sentiment remains mixed: four analysts rate the stock Buy, one Hold and two Sell, resulting in an average rating of Hold and a $12.00 price target.
• The company reported a significant quarterly miss, with a $0.42 per-share loss versus expectations of $0.37 in earnings and revenue of $137.13 million versus the $237.65 million consensus estimate.

Sable Offshore Corp. (NYSE:SOC - Get Free Report)'s share price shot up 6.6% on Wednesday. The stock traded as high as $3.62 and last traded at $3.6250. 2,149,205 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 7,719,333 shares. The stock had previously closed at $3.40.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on SOC. Weiss Ratings reissued a "sell (d-)" rating on shares of Sable Offshore in a report on Tuesday, July 21st. Roth Capital reaffirmed a "buy" rating on shares of Sable Offshore in a report on Wednesday. Wall Street Zen upgraded shares of Sable Offshore from a "strong sell" rating to a "sell" rating in a research report on Sunday, August 30th. Jefferies Financial Group set a $9.00 price objective on Sable Offshore in a report on Wednesday, August 12th. Finally, Stifel Nicolaus assumed coverage on shares of Sable Offshore in a research report on Thursday, September 10th. They set a "buy" rating and a $8.00 price target on the stock. Four 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 company. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $12.00.

Sable Offshore Stock Up 6.6%

The company has a quick ratio of 0.18, a current ratio of 0.24 and a debt-to-equity ratio of 1.85. The company's fifty day simple moving average is $4.56 and its 200 day simple moving average is $9.37. The firm has a market capitalization of $695.53 million, a PE ratio of -1.10 and a beta of -0.16.

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

Institutional Trading of Sable Offshore

A number of hedge funds have recently made changes to their positions in the stock. Capital International Investors increased its holdings in shares of Sable Offshore by 542.6% in the 4th quarter. Capital International Investors now owns 11,592,407 shares of the company's stock worth $104,564,000 after purchasing an additional 9,788,351 shares in the last quarter. Bank of America Corp DE raised its stake in Sable Offshore by 224.7% during the 1st quarter. Bank of America Corp DE now owns 1,295,085 shares of the company's stock valued at $21,395,000 after buying an additional 896,258 shares during the last quarter. Encompass Capital Advisors LLC boosted its stake in shares of Sable Offshore by 60.6% in the 4th quarter. Encompass Capital Advisors LLC now owns 13,489,241 shares of the company's stock worth $121,673,000 after buying an additional 5,091,925 shares during the last quarter. Easterly Investment Partners LLC purchased a new stake in Sable Offshore during the fourth quarter valued at $2,093,000. Finally, Purpose Unlimited Inc. purchased a new position in Sable Offshore in the fourth quarter worth about $1,078,000. 26.19% of the stock is owned by institutional investors.

Sable Offshore Company Profile

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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