Select Water Solutions (NYSE:WTTR) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Select Water Solutions (NYSE: WTTR) from “hold” to “strong-buy,” adding to a generally bullish analyst backdrop. The stock now has an average analyst rating of “Buy” with an average price target of $22.50.
• The company’s latest quarterly results beat expectations, with EPS of $0.08 versus the $0.06 consensus and revenue of $365.96 million topping estimates. Revenue was still down 2.2% year over year, and the company remains lightly profitable with a 1.54% net margin.
• Shares were trading near recent highs at $19.27, close to the 12-month peak of $20.48, while insiders recently sold stock. Institutional ownership remains high at 81.73%, and analysts expect full-year EPS of 0.29.

Select Water Solutions (NYSE:WTTR - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other research firms also recently weighed in on WTTR. Northland Securities set a $21.00 price target on shares of Select Water Solutions in a research report on Thursday, May 7th. Citigroup lifted their price target on shares of Select Water Solutions from $18.00 to $24.00 and gave the company a "buy" rating in a research report on Tuesday, May 12th. Raymond James Financial reiterated a "strong-buy" rating and issued a $24.00 price target on shares of Select Water Solutions in a research report on Thursday, May 7th. Wall Street Zen upgraded shares of Select Water Solutions from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Select Water Solutions in a research report on Wednesday, April 8th. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Select Water Solutions has an average rating of "Buy" and an average target price of $22.50.

Select Water Solutions Trading Down 0.1%

Shares of NYSE:WTTR opened at $19.27 on Monday. The company has a quick ratio of 1.76, a current ratio of 1.92 and a debt-to-equity ratio of 0.18. Select Water Solutions has a 12-month low of $7.86 and a 12-month high of $20.48. The business has a 50 day moving average of $16.36 and a 200-day moving average of $13.34. The stock has a market cap of $2.66 billion, a PE ratio of 91.76 and a beta of 0.99.

Select Water Solutions (NYSE:WTTR - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.08 earnings per share for the quarter, beating 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 2.21%. The company had revenue of $365.96 million during the quarter, compared to the consensus estimate of $344.63 million. During the same period in the previous year, the business earned $0.08 earnings per share. The firm's quarterly revenue was down 2.2% on a year-over-year basis. As a group, equities research analysts forecast that Select Water Solutions will post 0.29 earnings per share for the current year.

Insider Activity

In other Select Water Solutions news, CAO Brian Szymanski sold 20,000 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $17.04, for a total transaction of $340,800.00. Following the completion of the transaction, the chief accounting officer directly owned 114,752 shares in the company, valued at $1,955,374.08. The trade was a 14.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Michael Skarke sold 90,000 shares of the business's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $17.31, for a total transaction of $1,557,900.00. Following the transaction, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 222,010 shares of company stock valued at $3,925,971 in the last three months. Company insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Select Water Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Bank of America Corp DE boosted its position in shares of Select Water Solutions by 4.6% during the 1st quarter. Bank of America Corp DE now owns 348,968 shares of the company's stock worth $5,339,000 after purchasing an additional 15,477 shares in the last quarter. California State Teachers Retirement System lifted its position in Select Water Solutions by 24.9% in the 1st quarter. California State Teachers Retirement System now owns 106,867 shares of the company's stock valued at $1,635,000 after acquiring an additional 21,329 shares in the last quarter. Empowered Funds LLC lifted its position in Select Water Solutions by 6.2% in the 1st quarter. Empowered Funds LLC now owns 574,438 shares of the company's stock valued at $8,789,000 after acquiring an additional 33,614 shares in the last quarter. Quantinno Capital Management LP lifted its position in Select Water Solutions by 3.5% in the 1st quarter. Quantinno Capital Management LP now owns 42,180 shares of the company's stock valued at $645,000 after acquiring an additional 1,438 shares in the last quarter. Finally, OMERS ADMINISTRATION Corp bought a new position in Select Water Solutions in the 1st quarter valued at about $164,000. 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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