Select Water Solutions (NYSE:WTTR) Shares Gap Up - What's Next?

Key Points

• Select Water Solutions shares jumped, opening at $20.45 versus a prior close of $19.53, and were last trading near $20.28.
• Analyst sentiment remains positive overall, with a consensus rating of “Moderate Buy” and an average price target of $23.00; recent targets range from $22 to $26.
• The company exceeded quarterly expectations, reporting $0.17 in earnings per share and $395.81 million in revenue, while revenue rose 8.7% year over year. Select Water Solutions also pays a quarterly dividend of $0.07 per share, representing a 1.4% yield.

Select Water Solutions, Inc. (NYSE:WTTR - Get Free Report) shares gapped up before the market opened on Friday. The stock had previously closed at $19.53, but opened at $20.45. Select Water Solutions shares last traded at $20.28, with a volume of 575,391 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. Bank of America began coverage on shares of Select Water Solutions in a research note on Friday, May 29th. They set a "buy" rating and a $22.00 target price for the company. Zacks Research cut Select Water Solutions from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of Select Water Solutions in a research note on Monday, July 6th. Raymond James Financial cut Select Water Solutions from a "strong-buy" rating to an "outperform" rating and increased their target price for the company from $24.00 to $26.00 in a report on Thursday, August 6th. Finally, JPMorgan Chase & Co. began coverage on Select Water Solutions in a research report on Friday, August 21st. They issued an "overweight" rating and a $24.00 target price on the stock. Six research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $23.00.

Select Water Solutions Stock Performance

The stock has a market cap of $2.76 billion, a price-to-earnings ratio of 71.31 and a beta of 1.01. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.58 and a quick ratio of 1.40. The firm has a fifty day moving average of $20.04 and a 200 day moving average of $18.19.

Select Water Solutions (NYSE:WTTR - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.13 by $0.04. Select Water Solutions had a return on equity of 3.11% and a net margin of 2.24%.The company had revenue of $395.81 million for the quarter, compared to analyst estimates of $373.33 million. During the same quarter in the previous year, the company posted $0.10 earnings per share. The firm's revenue for the quarter was up 8.7% compared to the same quarter last year. As a group, sell-side analysts forecast that Select Water Solutions, Inc. will post 0.59 EPS for the current year.

Select Water Solutions Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Friday, August 7th were paid a dividend of $0.07 per share. The ex-dividend date of this dividend was Friday, August 7th. This represents a $0.28 dividend on an annualized basis and a yield of 1.4%. Select Water Solutions's payout ratio is 100.00%.

Institutional Trading of Select Water Solutions

Hedge funds have recently made changes to their positions in the company. Public Employees Retirement System of Ohio acquired a new stake in shares of Select Water Solutions during the 2nd quarter worth approximately $54,000. Nykredit A S acquired a new position in Select Water Solutions in the second quarter valued at approximately $62,000. SBI Okasan Asset Management Co.Ltd. purchased a new position in Select Water Solutions in the fourth quarter worth approximately $109,000. Jefferies Financial Group Inc. purchased a new position in Select Water Solutions in the fourth quarter worth approximately $144,000. Finally, OMERS ADMINISTRATION Corp acquired a new stake in shares of Select Water Solutions during the 1st quarter worth about $164,000. Hedge funds and other institutional investors own 81.73% of the company's stock.

About Select Water Solutions

Select Water Solutions, Inc provides water management and chemical solutions to the North American oil and gas industry. Its services include water sourcing, transfer, recycling, treatment, storage, and disposal, supporting hydraulic fracturing, drilling, completions, and production operations. The company also provides water infrastructure services and oilfield chemical products and solutions.

The company operates through its Water Services, Water Infrastructure, and Chemical Technologies businesses.

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