Select Water Solutions, Inc. (NYSE:WTTR) Given Average Recommendation of "Buy" by Brokerages

Key Points

• Select Water Solutions has a consensus analyst rating of "Buy" from seven covering firms, with an average 12-month price target of $22.40.
• Recent analyst updates were mostly upbeat, including Zacks upgrading the stock to strong-buy and Citigroup raising its price target to $24; Bank of America also initiated coverage with a buy rating.
• The company recently beat quarterly estimates, reporting $0.08 EPS versus $0.06 expected and revenue of $365.96 million, though revenue was still down 2.2% year over year.

Shares of Select Water Solutions, Inc. (NYSE:WTTR - Get Free Report) have been given a consensus rating of "Buy" by the seven research firms that are covering the firm, MarketBeat reports. One research analyst has rated the stock with a hold rating, four have given a buy rating and two have assigned a strong buy rating to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $22.40.

A number of research firms recently weighed in on WTTR. Zacks Research raised shares of Select Water Solutions from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 25th. Citigroup lifted their price objective on shares of Select Water Solutions from $18.00 to $24.00 and gave the company a "buy" rating in a report on Tuesday, May 12th. Northland Securities set a $21.00 price target on shares of Select Water Solutions in a research report on Thursday, May 7th. Raymond James Financial restated a "strong-buy" rating and set a $24.00 price target on shares of Select Water Solutions in a research report on Thursday, May 7th. Finally, Bank of America assumed coverage on shares of Select Water Solutions in a research report on Friday. They set a "buy" rating and a $22.00 price target on the stock.

Select Water Solutions Trading Down 0.0%

Shares of Select Water Solutions stock opened at $17.93 on Monday. The company has a market capitalization of $2.48 billion, a P/E ratio of 85.37 and a beta of 1.00. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.76 and a current ratio of 1.92. The company has a fifty day moving average of $16.59 and a 200 day moving average of $13.49. Select Water Solutions has a fifty-two week low of $7.86 and a fifty-two week high of $20.48.

Select Water Solutions (NYSE:WTTR - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.02. The company had revenue of $365.96 million during the quarter, compared to the consensus estimate of $344.63 million. Select Water Solutions had a net margin of 1.54% and a return on equity of 2.21%. Select Water Solutions's quarterly revenue was down 2.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.08 EPS. On average, sell-side analysts anticipate that Select Water Solutions will post 0.29 earnings per share for the current fiscal year.

Select Water Solutions Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, May 13th. Stockholders of record on Thursday, April 30th were issued a $0.07 dividend. The ex-dividend date was Thursday, April 30th. This represents a $0.28 annualized dividend and a dividend yield of 1.6%. Select Water Solutions's dividend payout ratio is presently 133.33%.

Insider Activity at Select Water Solutions

In other news, Director Robin H. Fielder sold 27,010 shares of the company's stock in a transaction on Friday, May 8th. The shares were sold at an average price of $16.80, for a total value of $453,768.00. Following the completion of the transaction, the director owned 43,315 shares in the company, valued at approximately $727,692. This represents a 38.41% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Michael Skarke sold 90,000 shares of the stock in a transaction on Monday, May 11th. The stock was sold at an average price of $17.31, for a total transaction of $1,557,900.00. Following the sale, the chief operating officer owned 380,738 shares of the company's stock, valued at approximately $6,590,574.78. This represents a 19.12% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 222,010 shares of company stock worth $3,925,971. Corporate insiders own 6.20% of the company's stock.

Institutional Trading of Select Water Solutions

A number of institutional investors have recently added to or reduced their stakes in WTTR. Franklin Resources Inc. increased its holdings in Select Water Solutions by 56.4% in the fourth quarter. Franklin Resources Inc. now owns 7,726,049 shares of the company's stock valued at $81,278,000 after buying an additional 2,786,172 shares in the last quarter. Alliancebernstein L.P. boosted its stake in shares of Select Water Solutions by 2,133.9% during the 3rd quarter. Alliancebernstein L.P. now owns 2,131,277 shares of the company's stock worth $22,783,000 after purchasing an additional 2,035,870 shares during the last quarter. Russell Investments Group Ltd. boosted its position in shares of Select Water Solutions by 124.2% in the third quarter. Russell Investments Group Ltd. now owns 1,801,488 shares of the company's stock worth $19,258,000 after acquiring an additional 997,847 shares during the last quarter. Millennium Management LLC boosted its position in shares of Select Water Solutions by 466.8% in the first quarter. Millennium Management LLC now owns 974,821 shares of the company's stock worth $10,236,000 after acquiring an additional 802,833 shares during the last quarter. Finally, Encompass Capital Advisors LLC boosted its position in shares of Select Water Solutions by 31.5% in the fourth quarter. Encompass Capital Advisors LLC now owns 3,118,824 shares of the company's stock worth $32,810,000 after acquiring an additional 746,534 shares during the last quarter. Hedge funds and other institutional investors own 81.73% of the company's stock.

Select Water Solutions Company Profile

Select Water Solutions, Inc, headquartered in Houston, Texas, is a water management services provider primarily serving the oil and gas industry. Formerly operating under the name Select Energy Services, the company rebranded to reflect its core focus on water treatment, recycling and disposal. Since its inception in 2016, Select Water Solutions has expanded to key U.S. basins—including the Permian, Eagle Ford, Marcellus and DJ Basin—and maintains strategic operations in select international regions.

The company's offerings span the full water lifecycle, from produced water gathering and transportation to advanced treatment and beneficial reuse.

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