Sable Offshore (NYSE:SOC) Shares Gap Up - What's Next?

Key Points

• Sable Offshore shares opened sharply higher, rising from a prior close of $4.78 to $5.16 before trading near $4.98, with about 1.56 million shares changing hands.
• Analyst sentiment remains mixed: three analysts rate the stock Buy, one Hold and two Sell. The consensus rating is Hold, with an average price target of $13.33.
• The company reported a weak quarter, posting a loss of $0.42 per share versus expectations for a $0.37 profit and revenue of $137.13 million against a $237.65 million estimate. Sable also has strained liquidity, with a current ratio of 0.24 and quick ratio of 0.18.

Sable Offshore Corp. (NYSE:SOC - Get Free Report) gapped up prior to trading on Thursday . The stock had previously closed at $4.78, but opened at $5.16. Sable Offshore shares last traded at $4.9820, with a volume of 1,561,033 shares trading hands.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Wall Street Zen lowered shares of Sable Offshore from a "hold" rating to a "sell" rating in a research report on Saturday, June 6th. Zacks Research cut Sable Offshore from a "hold" rating to a "strong sell" rating in a research note on Wednesday, June 3rd. Jefferies Financial Group set a $9.00 price target on Sable Offshore in a report on Wednesday, August 12th. Roth Capital reaffirmed a "buy" rating and set a $11.00 price target on shares of Sable Offshore in a research report on Tuesday, August 11th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Sable Offshore in a research report on Tuesday, July 21st. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $13.33.

Sable Offshore Stock Performance

The company has a 50 day moving average of $5.66 and a two-hundred day moving average of $10.42. 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 company has a market capitalization of $974.70 million, a PE ratio of -1.54 and a beta of -0.15.

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

Hedge Funds Weigh In On Sable Offshore

A number of hedge funds have recently added to or reduced their stakes in SOC. Capital International Investors raised its holdings in shares of Sable Offshore by 542.6% during the fourth quarter. Capital International Investors now owns 11,592,407 shares of the company's stock valued at $104,564,000 after purchasing an additional 9,788,351 shares during the last quarter. Bank of America Corp DE raised its holdings in Sable Offshore by 224.7% in 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 during the period. Encompass Capital Advisors LLC raised its stake in shares of Sable Offshore by 60.6% in 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 during the period. Easterly Investment Partners LLC purchased a new position in Sable Offshore during the fourth quarter valued at approximately $2,093,000. Finally, Purpose Unlimited Inc. purchased a new position in shares of Sable Offshore during the 4th quarter valued at $1,078,000. 26.19% of the stock is currently owned by hedge funds and other 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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