Sable Offshore (NYSE:SOC) Shares Gap Down - Should You Sell?

Key Points

• Sable Offshore shares fell 5.4%, opening at $4.49 after previously closing at $4.71, and last traded near $4.47. The stock is substantially below its 50-day and 200-day moving averages of $9.00 and $11.19, respectively.
• Analyst sentiment is mixed but leans cautious: the consensus rating is “Hold” with a $15.33 price target, while recent downgrades included “Sell” and “Strong Sell” ratings. Roth Capital also cut its target to $15 while maintaining a “Buy” rating.
• The company reported a significant quarterly loss, with EPS of -$1.37 versus the expected -$0.52, and revenue of $1.27 million versus $16.10 million expected. Insiders sold shares mainly to cover tax obligations, while several institutional investors increased their holdings.

Sable Offshore Corp. (NYSE:SOC - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $4.71, but opened at $4.49. Sable Offshore shares last traded at $4.47, with a volume of 836,898 shares traded.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Wall Street Zen lowered shares of Sable Offshore from a "hold" rating to a "sell" rating in a research note on Saturday, June 6th. Benchmark reissued a "hold" rating on shares of Sable Offshore in a research note on Wednesday, July 8th. Zacks Research lowered Sable Offshore from a "hold" rating to a "strong sell" rating in a report on Wednesday, June 3rd. Roth Capital reduced their price objective on Sable Offshore from $22.00 to $15.00 and set a "buy" rating for the company in a research report on Wednesday, July 1st. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Sable Offshore in a report on Tuesday, July 21st. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $15.33.

Sable Offshore Stock Down 5.4%

The stock's fifty day moving average price is $9.00 and its 200-day moving average price is $11.19. The company has a market capitalization of $687.67 million, a price-to-earnings ratio of -1.04 and a beta of -0.08.

Sable Offshore (NYSE:SOC - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported ($1.37) EPS for the quarter, missing the consensus estimate of ($0.52) by ($0.85). The company had revenue of $1.27 million for the quarter, compared to analyst estimates of $16.10 million. Analysts anticipate that Sable Offshore Corp. will post -0.36 EPS for the current year.

Insiders Place Their Bets

In related news, insider Anthony Duenner sold 39,312 shares of Sable Offshore stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $13.56, for a total value of $533,070.72. Following the sale, the insider owned 590,864 shares of the company's stock, valued at approximately $8,012,115.84. The trade was a 6.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO James Caldwell Flores sold 39,311 shares of Sable Offshore stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $13.56, for a total value of $533,057.16. Following the completion of the sale, the chief operating officer directly owned 562,740 shares in the company, valued at approximately $7,630,754.40. This represents a 6.53% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 240,163 shares of company stock valued at $3,228,498 in the last three months. 20.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SOC. Tactive Advisors LLC increased its position in shares of Sable Offshore by 94.1% during the 2nd quarter. Tactive Advisors LLC now owns 87,849 shares of the company's stock worth $271,000 after purchasing an additional 42,579 shares during the last quarter. Bank of America Corp DE raised its stake 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 purchasing an additional 896,258 shares in the last quarter. Janus Henderson Group PLC boosted its holdings in shares of Sable Offshore by 135.1% in the 1st quarter. Janus Henderson Group PLC now owns 56,200 shares of the company's stock valued at $927,000 after buying an additional 32,300 shares during the last quarter. Sunbelt Securities Inc. boosted its holdings in shares of Sable Offshore by 7.5% in the 1st quarter. Sunbelt Securities Inc. now owns 72,000 shares of the company's stock valued at $1,189,000 after buying an additional 5,000 shares during the last quarter. Finally, Royal Bank of Canada grew its stake in shares of Sable Offshore by 22.3% in the first quarter. Royal Bank of Canada now owns 4,917 shares of the company's stock valued at $82,000 after buying an additional 895 shares in the last quarter. 26.19% of the stock is currently owned by institutional investors.

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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