Select Water Solutions (NYSE:WTTR) Rating Lowered to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Select Water Solutions from buy to hold, making it the latest mixed analyst call on the stock.
• Despite the downgrade, broader analyst sentiment remains upbeat: the stock still carries an average Buy rating and a consensus price target of $22.40, above its recent $18.90 trading level.
• The company recently beat quarterly expectations, posting $0.08 EPS versus $0.06 expected and revenue of $365.96 million versus $344.63 million forecast, even as insiders sold shares in recent months.

Select Water Solutions (NYSE:WTTR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

Other equities analysts have also issued research reports about the stock. Northland Securities set a $21.00 price target on shares of Select Water Solutions in a report on Thursday, May 7th. Weiss Ratings restated a "hold (c)" rating on shares of Select Water Solutions in a report on Wednesday, April 8th. Zacks Research raised Select Water Solutions from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 25th. Bank of America assumed coverage on Select Water Solutions in a report on Friday, May 29th. They set a "buy" rating and a $22.00 target price on the stock. Finally, Citigroup upped their price target on Select Water Solutions from $18.00 to $24.00 and gave the company a "buy" rating in a research report on Tuesday, May 12th. Two investment analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Buy" and a consensus target price of $22.40.

Select Water Solutions Price Performance

WTTR stock opened at $18.90 on Friday. The company has a 50 day simple moving average of $17.31 and a 200 day simple moving average of $14.07. The stock has a market cap of $2.61 billion, a price-to-earnings ratio of 89.98 and a beta of 1.00. Select Water Solutions has a 1 year low of $7.86 and a 1 year high of $20.48. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.92 and a quick ratio of 1.76.

Select Water Solutions (NYSE:WTTR - Get Free Report) last released 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. The business had revenue of $365.96 million during 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 firm's quarterly revenue was down 2.2% compared to the same quarter last year. During the same period in the prior year, the company earned $0.08 EPS. Research analysts anticipate that Select Water Solutions will post 0.38 EPS for the current fiscal year.

Insider Activity

In other news, COO Michael Skarke sold 90,000 shares of Select Water Solutions 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 transaction, the chief operating officer directly owned 380,738 shares of the company's stock, valued at approximately $6,590,574.78. This trade represents a 19.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Richard Alan Burnett sold 45,316 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $18.74, for a total value of $849,221.84. Following the completion of the transaction, the director directly owned 71,578 shares in the company, valued at $1,341,371.72. This represents a 38.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 222,010 shares of company stock worth $3,925,971 in the last three months. Corporate insiders own 6.20% of the company's stock.

Hedge Funds Weigh In On Select Water Solutions

Several institutional investors have recently added to or reduced their stakes in WTTR. Franklin Resources Inc. lifted its stake in shares of 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. lifted its stake in shares of Select Water Solutions by 2,133.9% in the third quarter. Alliancebernstein L.P. now owns 2,131,277 shares of the company's stock valued at $22,783,000 after buying an additional 2,035,870 shares in the last quarter. Russell Investments Group Ltd. lifted its stake 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 valued at $19,258,000 after buying an additional 997,847 shares in the last quarter. Millennium Management LLC lifted its stake 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 valued at $10,236,000 after buying an additional 802,833 shares in the last quarter. Finally, Encompass Capital Advisors LLC lifted its stake 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 valued at $32,810,000 after buying an additional 746,534 shares in the last quarter. 81.73% of the stock is owned by institutional investors and hedge funds.

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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