Sable Offshore (NYSE:SOC) Stock Price Down 7.2% - Time to Sell?

Key Points

• Sable Offshore shares fell 7.2% to about $3.69 in mid-day trading, with volume 66% below the average daily level.
• Analyst sentiment is mixed: the consensus rating is “Hold” with a $12 price target, though recent reports include “strong sell” and “sell” downgrades alongside Jefferies’ $9 and Stifel’s $8 targets.
• The company reported a significant quarterly miss, posting an adjusted loss of $0.42 per share versus expectations for $0.37 in earnings and revenue of $137.13 million versus $237.65 million expected.

Sable Offshore Corp. (NYSE:SOC - Get Free Report)'s share price was down 7.2% during mid-day trading on Friday. The company traded as low as $3.76 and last traded at $3.6850. 2,639,652 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 7,665,784 shares. The stock had previously closed at $3.97.

Analysts Set New Price Targets

A number of brokerages recently issued reports on SOC. Weiss Ratings restated a "sell (d-)" rating on shares of Sable Offshore in a research note on Tuesday, July 21st. Jefferies Financial Group set a $9.00 price objective on Sable Offshore in a report on Wednesday, August 12th. Wall Street Zen upgraded Sable Offshore from a "strong sell" rating to a "sell" rating in a research note on Sunday, August 30th. Zacks Research lowered Sable Offshore from a "hold" rating to a "strong sell" rating in a research report on Wednesday, June 3rd. 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 for the company. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $12.00.

Sable Offshore Stock Performance

The stock has a market capitalization of $707.04 million, a price-to-earnings ratio of -1.12 and a beta of -0.16. 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 firm has a fifty day moving average of $4.59 and a 200 day moving average of $9.61.

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 analysts' consensus estimates 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. On average, sell-side analysts anticipate that Sable Offshore Corp. will post -2.18 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SOC. Encompass Capital Advisors LLC lifted its position in Sable Offshore by 60.6% during the fourth 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 in the last quarter. Capital International Investors grew its stake 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 valued at $104,564,000 after buying an additional 9,788,351 shares during the period. Bank of America Corp DE increased its holdings in shares of 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 worth $21,395,000 after buying an additional 896,258 shares during the last quarter. BW Gestao de Investimentos Ltda. purchased a new stake in shares of Sable Offshore during the 4th quarter valued at approximately $13,234,000. Finally, Aventail Capital Group LP lifted its holdings in Sable Offshore by 141.3% in the fourth quarter. Aventail Capital Group LP now owns 1,264,639 shares of the company's stock valued at $11,407,000 after acquiring an additional 740,621 shares during the last quarter. 26.19% of the stock is owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.