Sable Offshore (NYSE:SOC) Shares Gap Down on Disappointing Earnings

Key Points

• Sable Offshore shares fell sharply after the company reported disappointing quarterly results, opening at $4.75 versus a prior close of $5.09 and later trading around $4.58.
• The company posted EPS of $0.05, missing the $0.37 consensus estimate, while revenue of $137.13 million came in well below expectations of $237.65 million.
• Analyst sentiment is mixed but cautious: Sable Offshore has a consensus “Hold” rating, an average price target of $15.33, and recent rating downgrades from several firms.

Sable Offshore Corp. (NYSE:SOC - Get Free Report)'s stock price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $5.09, but opened at $4.75. Sable Offshore shares last traded at $4.5840, with a volume of 1,323,133 shares changing hands.

The company reported $0.05 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.37 by ($0.32). The company had revenue of $137.13 million for the quarter, compared to the consensus estimate of $237.65 million.

Wall Street Analyst Weigh In

SOC has been the subject of a number of research reports. Weiss Ratings reiterated a "sell (d-)" rating on shares of Sable Offshore in a report on Tuesday, July 21st. Wall Street Zen lowered shares of Sable Offshore from a "hold" rating to a "sell" rating in a research note on Saturday, June 6th. Jefferies Financial Group dropped their price objective on shares of Sable Offshore from $24.00 to $11.00 and set a "buy" rating on the stock in a research note on Monday, July 6th. Roth Capital decreased their target price on shares of Sable Offshore from $22.00 to $15.00 and set a "buy" rating for the company in a research note on Wednesday, July 1st. Finally, Zacks Research cut Sable Offshore from a "hold" rating to a "strong sell" rating in a research report on Wednesday, June 3rd. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $15.33.

Hedge Funds Weigh In On Sable Offshore

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Fifth Third Bancorp bought a new position in shares of Sable Offshore during the 1st quarter valued at $29,000. NewEdge Advisors LLC increased its position in Sable Offshore by 36.2% during the first quarter. NewEdge Advisors LLC now owns 2,448 shares of the company's stock valued at $62,000 after acquiring an additional 650 shares during the last quarter. KBC Group NV lifted its holdings in Sable Offshore by 48.7% in the first quarter. KBC Group NV now owns 3,132 shares of the company's stock valued at $52,000 after acquiring an additional 1,026 shares during the period. Whittier Trust Co. of Nevada Inc. bought a new position in Sable Offshore in the fourth quarter valued at about $37,000. Finally, Royal Bank of Canada boosted its position in Sable Offshore by 22.3% in the first quarter. Royal Bank of Canada now owns 4,917 shares of the company's stock worth $82,000 after purchasing an additional 895 shares during the last quarter. Institutional investors own 26.19% of the company's stock.

Sable Offshore Trading Down 10.3%

The firm has a market capitalization of $704.65 million, a P/E ratio of -1.07 and a beta of -0.15. The stock has a 50 day simple moving average of $6.85 and a 200-day simple moving average of $10.73.

Sable Offshore Company Profile

Sable Offshore NYSE: SOC is an independent upstream oil and natural gas company specializing in offshore hydrocarbon exploration and production. The company identifies and secures exploration and development rights, conducts detailed seismic interpretation, and advances offshore prospects through appraisal and development phases. Its focus on the offshore environment drives investments in specialized drilling techniques, subsea infrastructure and production facility design.

Core business activities include offshore seismic surveys, the drilling of exploration and appraisal wells, installation and operation of production platforms or subsea systems, and well intervention services.

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