Select Water Solutions (NYSE:WTTR) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Select Water Solutions (NYSE:WTTR) from strong-buy to hold, adding to a mixed analyst picture that still shows a consensus Moderate Buy and an average price target of $22.40.
• The stock rose 3.1% and opened at $18.66. WTTR has a market cap of about $2.58 billion and is trading near its 52-week high of $20.48.
• Recent earnings were better than expected: the company reported $0.08 EPS versus the $0.06 estimate, and revenue of $365.96 million also topped forecasts. However, insiders sold shares recently, including a director and the COO.

Select Water Solutions (NYSE:WTTR - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

WTTR has been the subject of several other reports. Citigroup upped their price objective on Select Water Solutions from $18.00 to $24.00 and gave the stock a "buy" rating in a research note on Tuesday, May 12th. Wall Street Zen downgraded Select Water Solutions from a "buy" rating to a "hold" rating in a research note on Saturday, June 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Select Water Solutions in a research note on Monday. Piper Sandler raised their target price on shares of Select Water Solutions from $16.00 to $21.00 and gave the stock an "overweight" rating in a research note on Monday, May 18th. Finally, Northland Securities set a $21.00 price target on shares of Select Water Solutions in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $22.40.

Select Water Solutions Stock Up 3.1%

WTTR stock opened at $18.66 on Monday. The company has a market cap of $2.58 billion, a price-to-earnings ratio of 88.87 and a beta of 0.98. 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 business's 50-day moving average is $18.40 and its two-hundred day moving average is $15.04. 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 quarterly earnings data 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 firm had revenue of $365.96 million for the quarter, compared to analysts' expectations of $344.63 million. Select Water Solutions had a net margin of 1.54% and a return on equity of 2.21%. The business's quarterly revenue was down 2.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.08 EPS. As a group, analysts forecast that Select Water Solutions will post 0.45 earnings per share for the current year.

Insider Activity at Select Water Solutions

In other news, Director Robin H. Fielder sold 27,010 shares of the firm's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $16.80, for a total transaction of $453,768.00. Following the completion of the transaction, the director owned 43,315 shares in the company, valued at $727,692. This trade represents a 38.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Michael Skarke sold 90,000 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $17.31, for a total value of $1,557,900.00. Following the completion of the sale, the chief operating officer owned 380,738 shares in the company, valued at $6,590,574.78. This represents a 19.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 222,010 shares of company stock worth $3,925,971 over the last 90 days. Company insiders own 6.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Cinctive Capital Management LP grew its stake in shares of Select Water Solutions by 55.7% in the 3rd quarter. Cinctive Capital Management LP now owns 623,285 shares of the company's stock worth $6,663,000 after buying an additional 222,849 shares in the last quarter. Penn Capital Management Company LLC lifted its holdings in shares of Select Water Solutions by 12.2% in the 3rd quarter. Penn Capital Management Company LLC now owns 1,179,161 shares of the company's stock valued at $12,618,000 after acquiring an additional 128,257 shares during the last quarter. Gabelli Funds LLC lifted its holdings in shares of Select Water Solutions by 91.9% in the 3rd quarter. Gabelli Funds LLC now owns 325,209 shares of the company's stock valued at $3,476,000 after acquiring an additional 155,703 shares during the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new position in Select Water Solutions in the fourth quarter worth about $1,557,000. Finally, Wedge Capital Management L L P NC increased its stake in Select Water Solutions by 176.9% during the fourth quarter. Wedge Capital Management L L P NC now owns 299,129 shares of the company's stock worth $3,147,000 after acquiring an additional 191,086 shares during the last quarter. 81.73% of the stock is owned by hedge funds and other institutional investors.

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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