Sable Offshore (NYSE:SOC) Stock Price Down 7.5% - Here's What Happened

Key Points

• Sable Offshore shares fell 7.5% on Thursday, trading as low as $3.86 on lighter volume than usual. The decline added to weakness in the stock, which has fallen well below its 50-day and 200-day moving averages.
• Analyst sentiment has softened after recent rating changes and price-target cuts. Roth Capital lowered its target to $15 from $22, while other firms issued or reiterated cautious views, leaving the consensus rating at Hold.
• Recent fundamentals have been weak, with the company posting a larger-than-expected quarterly loss and revenue far below estimates. Insider selling and heavy share sales over the past 90 days have also added to investor concerns.

Sable Offshore Corp. (NYSE:SOC - Get Free Report) was down 7.5% during trading on Thursday . The company traded as low as $3.86 and last traded at $3.8480. Approximately 2,308,252 shares traded hands during trading, a decline of 69% from the average session volume of 7,396,917 shares. The stock had previously closed at $4.16.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Roth Capital lowered their price objective on shares of Sable Offshore from $22.00 to $15.00 and set a "buy" rating on the stock in a research note on Wednesday, July 1st. Benchmark restated a "hold" rating on shares of Sable Offshore in a report on Wednesday, July 8th. Wall Street Zen downgraded Sable Offshore from a "hold" rating to a "sell" rating in a research report on Saturday, June 6th. Zacks Research lowered Sable Offshore from a "hold" rating to a "strong sell" rating in a research note on Wednesday, June 3rd. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Sable Offshore in a report on Friday, April 24th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $15.33.

Sable Offshore Stock Down 6.4%

The stock has a market cap of $601.23 million, a P/E ratio of -0.92 and a beta of -0.08. The firm's 50-day moving average is $10.28 and its two-hundred day moving average is $11.44.

Sable Offshore (NYSE:SOC - Get Free Report) last announced its quarterly 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 business had revenue of $1.27 million during the quarter, compared to the consensus estimate of $16.10 million. Analysts anticipate that Sable Offshore Corp. will post -0.27 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Gregory D. Patrinely sold 40,743 shares of the stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $13.33, for a total transaction of $543,104.19. Following the completion of the sale, the executive vice president owned 502,051 shares in the company, valued at $6,692,339.83. This represents a 7.51% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Anthony Duenner sold 40,743 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The shares were sold at an average price of $13.33, for a total value of $543,104.19. Following the completion of the sale, the insider directly owned 530,176 shares in the company, valued at $7,067,246.08. This trade represents a 7.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 240,163 shares of company stock valued at $3,228,498. Insiders own 20.00% of the company's stock.

Institutional Trading of Sable Offshore

Several hedge funds and other institutional investors have recently bought and sold shares of SOC. Capital International Investors grew its position in Sable Offshore by 542.6% during the fourth quarter. Capital International Investors now owns 11,592,407 shares of the company's stock worth $104,564,000 after buying an additional 9,788,351 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in Sable Offshore by 389.3% in the 3rd quarter. JPMorgan Chase & Co. now owns 159,238 shares of the company's stock valued at $2,780,000 after acquiring an additional 126,692 shares in the last quarter. Encompass Capital Advisors LLC lifted its position in shares of Sable Offshore by 60.6% in the 4th quarter. Encompass Capital Advisors LLC now owns 13,489,241 shares of the company's stock worth $121,673,000 after acquiring an additional 5,091,925 shares during the period. Easterly Investment Partners LLC bought a new stake in shares of Sable Offshore in the 4th quarter worth approximately $2,093,000. Finally, Purpose Unlimited Inc. acquired a new stake in shares of Sable Offshore during the 4th quarter worth approximately $1,078,000. 26.19% of the stock is currently owned by institutional investors and hedge funds.

About Sable Offshore

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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