Select Water Solutions (NYSE:WTTR) Releases Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Select Water Solutions beat quarterly expectations: The company reported $0.17 in EPS versus the $0.13 consensus estimate, while revenue of $395.81 million exceeded forecasts of $373.33 million.
• Shares rose 0.7% to $18.50 after the results. The company announced a quarterly dividend of $0.07 per share, representing a 1.5% annual yield.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and a $22.40 price target, although insiders sold 222,010 shares worth approximately $3.93 million over the past three months.

Select Water Solutions (NYSE:WTTR - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.13 by $0.04, FiscalAI reports. The company had revenue of $395.81 million during the quarter, compared to analyst estimates of $373.33 million. Select Water Solutions had a return on equity of 2.21% and a net margin of 1.54%.

Select Water Solutions Trading Up 0.7%

Select Water Solutions stock traded up $0.12 during mid-day trading on Tuesday, hitting $18.50. The company's stock had a trading volume of 3,114,839 shares, compared to its average volume of 1,688,184. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.92 and a quick ratio of 1.76. The stock has a market cap of $2.56 billion, a price-to-earnings ratio of 88.10 and a beta of 0.99. The business has a 50 day moving average price of $18.92 and a 200-day moving average price of $16.19. Select Water Solutions has a 12 month low of $7.86 and a 12 month high of $21.67.

Select Water Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Friday, August 7th will be given a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date is Friday, August 7th. Select Water Solutions's dividend payout ratio (DPR) is presently 133.33%.

Insider Buying and Selling

In other news, Director Robin H. Fielder sold 27,010 shares of the business's stock in a transaction dated Friday, May 8th. The stock was sold at an average price of $16.80, for a total value of $453,768.00. Following the completion of the sale, the director owned 43,315 shares of the company's stock, valued at approximately $727,692. The trade was a 38.41% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Brian Szymanski sold 20,000 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $17.04, for a total value of $340,800.00. Following the sale, the chief accounting officer owned 114,752 shares of the company's stock, valued at $1,955,374.08. This represents a 14.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 222,010 shares of company stock valued at $3,925,971 over the last three months. 6.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Select Water Solutions

A number of large investors have recently bought and sold shares of WTTR. Invesco Ltd. boosted its stake in shares of Select Water Solutions by 17.5% during the fourth quarter. Invesco Ltd. now owns 913,844 shares of the company's stock valued at $9,614,000 after purchasing an additional 136,324 shares during the period. Mercer Global Advisors Inc. ADV raised its holdings in Select Water Solutions by 10.6% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 17,699 shares of the company's stock valued at $186,000 after buying an additional 1,692 shares during the last quarter. Virtus Investment Advisers LLC purchased a new stake in Select Water Solutions during the 4th quarter valued at $160,000. Inspire Investing LLC boosted its position in Select Water Solutions by 1.9% during the 4th quarter. Inspire Investing LLC now owns 55,271 shares of the company's stock valued at $581,000 after buying an additional 1,023 shares during the period. Finally, Interval Partners LP bought a new stake in Select Water Solutions in the 4th quarter worth $315,000. 81.73% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

WTTR has been the topic of a number of recent analyst reports. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $24.00 target price on shares of Select Water Solutions in a research note on Thursday, May 7th. Piper Sandler raised their price objective on shares of Select Water Solutions from $16.00 to $21.00 and gave the company an "overweight" rating in a research report on Monday, May 18th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Select Water Solutions in a report on Monday, July 6th. Citigroup upped their target price on shares of Select Water Solutions from $18.00 to $24.00 and gave the stock a "buy" rating in a research report on Tuesday, May 12th. Finally, Wall Street Zen upgraded Select Water Solutions from a "hold" rating to a "buy" rating in a research report on Saturday, July 18th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Select Water Solutions presently has a consensus rating of "Moderate Buy" and a consensus price target of $22.40.

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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