Select Water Solutions, Inc. (NYSE:WTTR) Receives Average Recommendation of "Buy" from Analysts

Key Points

• Analysts give Select Water Solutions an average "Buy" rating (1 hold, 3 buy, 1 strong buy) with a 12‑month average price target of $17, and several firms (Northland, Citigroup, Piper Sandler) recently raised ratings/targets to the $16–$18 range.
• Large institutional investors have substantially increased positions—Franklin Resources now owns ~7.73 million shares after a 56.4% increase and AllianceBernstein and Millennium added sizable stakes—leaving institutions and hedge funds holding about 81.7% of the stock.
• Select Water beat Q1 estimates with EPS $0.08 (vs. $0.06) and revenue of $365.96M but posted a slim net margin of 1.54%; the company also declared a quarterly dividend of $0.07 (1.6% yield) with a payout ratio of 133%.

Shares of Select Water Solutions, Inc. (NYSE:WTTR - Get Free Report) have earned an average recommendation of "Buy" from the five brokerages that are covering the firm, Marketbeat.com reports. One research analyst has rated the stock with a hold recommendation, three have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $17.00.

A number of analysts have commented on the company. Northland Securities raised Select Water Solutions from a "market perform" rating to an "outperform" rating and set a $18.00 price target for the company in a research report on Thursday, February 19th. Citigroup lifted their price objective on shares of Select Water Solutions from $16.50 to $18.00 and gave the company a "buy" rating in a research note on Thursday, April 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Select Water Solutions in a research note on Wednesday, April 8th. Finally, Piper Sandler lifted their price objective on shares of Select Water Solutions from $14.00 to $16.00 and gave the company an "overweight" rating in a research note on Thursday, February 26th.

Insider Buying and Selling

In other Select Water Solutions news, CEO John Schmitz sold 33,916 shares of Select Water Solutions stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $13.03, for a total transaction of $441,925.48. Following the completion of the sale, the chief executive officer directly owned 249,243 shares in the company, valued at approximately $3,247,636.29. The trade was a 11.98% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Select Water Solutions

Several large investors have recently made changes to their positions in WTTR. Franklin Resources Inc. lifted its stake in shares of Select Water Solutions by 56.4% in the 4th quarter. Franklin Resources Inc. now owns 7,726,049 shares of the company's stock valued at $81,278,000 after purchasing an additional 2,786,172 shares during the period. Alliancebernstein L.P. lifted its stake in shares of Select Water Solutions by 2,133.9% in the 3rd quarter. Alliancebernstein L.P. now owns 2,131,277 shares of the company's stock valued at $22,783,000 after purchasing an additional 2,035,870 shares during the period. Russell Investments Group Ltd. lifted its stake in shares of Select Water Solutions by 124.2% in the 3rd quarter. Russell Investments Group Ltd. now owns 1,801,488 shares of the company's stock valued at $19,258,000 after purchasing an additional 997,847 shares during the period. Millennium Management LLC lifted its stake in shares of Select Water Solutions by 466.8% in the 1st quarter. Millennium Management LLC now owns 974,821 shares of the company's stock valued at $10,236,000 after purchasing an additional 802,833 shares during the period. Finally, Encompass Capital Advisors LLC lifted its stake in shares of Select Water Solutions by 31.5% in the 4th quarter. Encompass Capital Advisors LLC now owns 3,118,824 shares of the company's stock valued at $32,810,000 after purchasing an additional 746,534 shares during the period. 81.73% of the stock is currently owned by institutional investors and hedge funds.

Select Water Solutions Trading Up 1.4%

NYSE WTTR opened at $17.49 on Thursday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.42 and a current ratio of 1.57. The company has a market capitalization of $2.12 billion, a price-to-earnings ratio of 83.27 and a beta of 0.99. The company's 50-day simple moving average is $15.00 and its two-hundred day simple moving average is $12.64. Select Water Solutions has a one year low of $7.20 and a one year high of $18.50.

Select Water Solutions (NYSE:WTTR - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.02. Select Water Solutions had a net margin of 1.54% and a return on equity of 2.33%. The firm had revenue of $365.96 million for the quarter, compared to the consensus estimate of $344.63 million. During the same quarter in the previous year, the firm earned $0.08 EPS. The company's quarterly revenue was down 2.2% compared to the same quarter last year. Equities analysts forecast that Select Water Solutions will post 0.19 EPS for the current fiscal year.

Select Water Solutions Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 13th. Shareholders of record on Thursday, April 30th will be paid a dividend of $0.07 per share. This represents a $0.28 annualized dividend and a yield of 1.6%. The ex-dividend date is Thursday, April 30th. Select Water Solutions's payout ratio is presently 133.33%.

About Select Water Solutions

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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