Select Water Solutions (NYSE:WTTR) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Q1 beat: Select Water Solutions reported EPS of $0.08 vs. a $0.06 consensus and revenue of $365.96M (vs. $344.63M expected), though revenue fell 2.2% year‑over‑year.
• The company declared a quarterly dividend of $0.07 ($0.28 annualized) for a 1.6% yield, but the dividend payout ratio is notably high at 133.33%.
• Shares jumped to $17.28 after the results; the CEO sold 33,916 shares, institutional investors own 81.73% of the stock, and analysts have a consensus "Buy" with an average target of $17.00.

Select Water Solutions (NYSE:WTTR - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $0.08 earnings per share for the quarter, topping the consensus estimate of $0.06 by $0.02, Zacks reports. Select Water Solutions had a net margin of 1.51% and a return on equity of 2.30%. The business had revenue of $365.96 million for the quarter, compared to analysts' expectations of $344.63 million. During the same period in the previous year, the company earned $0.08 earnings per share. The firm's revenue for the quarter was down 2.2% compared to the same quarter last year.

Select Water Solutions Price Performance

Shares of Select Water Solutions stock traded up $0.67 on Tuesday, hitting $17.28. 1,488,221 shares of the company traded hands, compared to its average volume of 2,000,931. The company has a current ratio of 1.57, a quick ratio of 1.42 and a debt-to-equity ratio of 0.31. Select Water Solutions has a 12-month low of $7.20 and a 12-month high of $17.36. The firm's 50-day simple moving average is $14.90 and its 200 day simple moving average is $12.59. The company has a market cap of $2.10 billion, a P/E ratio of 82.28 and a beta of 0.99.

Select Water Solutions Announces Dividend

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

Insider Activity at Select Water Solutions

In related news, CEO John Schmitz sold 33,916 shares of the stock in a transaction 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 transaction, the chief executive officer owned 249,243 shares of the company's stock, valued at approximately $3,247,636.29. This trade represents a 11.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Select Water Solutions

Several institutional investors and hedge funds have recently made changes to their positions in the business. Franklin Resources Inc. grew its holdings in shares of Select Water Solutions by 56.4% during 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 last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Select Water Solutions by 0.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 6,364,488 shares of the company's stock valued at $66,955,000 after purchasing an additional 58,875 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Select Water Solutions by 16.0% during the 3rd quarter. Wellington Management Group LLP now owns 5,126,486 shares of the company's stock valued at $54,802,000 after purchasing an additional 705,612 shares during the last quarter. State Street Corp grew its holdings in shares of Select Water Solutions by 15.1% during the 4th quarter. State Street Corp now owns 3,246,517 shares of the company's stock valued at $34,153,000 after purchasing an additional 426,822 shares during the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Select Water Solutions by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 2,284,929 shares of the company's stock valued at $24,041,000 after purchasing an additional 36,208 shares during the last quarter. Institutional investors own 81.73% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Northland Securities upgraded shares of Select Water Solutions from a "market perform" rating to an "outperform" rating and set a $18.00 target price on the stock in a research note on Thursday, February 19th. Piper Sandler boosted their target price 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. Weiss Ratings reiterated a "hold (c)" rating on shares of Select Water Solutions in a research note on Wednesday, April 8th. Finally, Citigroup boosted their target price 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. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, Select Water Solutions presently has a consensus rating of "Buy" and an average target price of $17.00.

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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