Select Water Solutions (NYSE:WTTR) Sets New 12-Month High - Time to Buy?

Key Points

• WTTR hit a new 52-week high of $16.05 (last $16.01) on heavy volume, and analysts’ consensus is a Buy with an average price target of $17.00 following several recent upgrades.
• The company missed quarterly EPS ($-0.20 vs. $0.01 expected) but beat revenue estimates ($346.5M vs. $320.85M); Select Water Solutions has a market cap of about $1.95B and a P/E of 76.6.
• Select Water declared a $0.07 quarterly dividend (1.7% yield) despite a 133% payout ratio, while CEO John Schmitz sold 33,916 shares and institutional investors own roughly 81.7% of the stock.

Select Water Solutions, Inc. (NYSE:WTTR - Get Free Report) reached a new 52-week high on Wednesday . The stock traded as high as $16.05 and last traded at $16.01, with a volume of 900936 shares. The stock had previously closed at $15.45.

Analysts Set New Price Targets

Several research firms recently weighed in on WTTR. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Select Water Solutions in a research note on Wednesday, April 8th. Wall Street Zen raised shares of Select Water Solutions from a "sell" rating to a "hold" rating in a report on Saturday, December 27th. Northland Securities raised shares of Select Water Solutions from a "market perform" rating to an "outperform" rating and set a $18.00 price target on the stock in a report on Thursday, February 19th. Citigroup increased their price objective 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. Finally, Piper Sandler boosted their target price on shares of Select Water Solutions from $14.00 to $16.00 and gave the stock an "overweight" rating in a research note on Thursday, February 26th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Select Water Solutions presently has an average rating of "Buy" and an average target price of $17.00.

Select Water Solutions Trading Up 4.1%

The company has a current ratio of 1.57, a quick ratio of 1.42 and a debt-to-equity ratio of 0.31. The firm has a market capitalization of $1.95 billion, a price-to-earnings ratio of 76.62 and a beta of 0.97. The firm's 50-day moving average is $14.34 and its 200 day moving average is $12.24.

Select Water Solutions (NYSE:WTTR - Get Free Report) last announced its quarterly earnings results on Tuesday, February 17th. The company reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.01 by ($0.21). The business had revenue of $346.50 million during the quarter, compared to analyst estimates of $320.85 million. Select Water Solutions had a net margin of 1.51% and a return on equity of 2.30%. The company's revenue was down .7% compared to the same quarter last year. During the same quarter last year, the company posted ($0.02) earnings per share. On average, equities analysts predict that Select Water Solutions, Inc. will post 0.26 earnings per share for the current fiscal year.

Select Water Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 13th. Stockholders of record on Thursday, April 30th will be paid a $0.07 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a $0.28 annualized dividend and a dividend yield of 1.7%. Select Water Solutions's dividend payout ratio is presently 133.33%.

Insider Activity

In related news, CEO John Schmitz sold 33,916 shares of Select Water Solutions stock in a transaction that occurred on Monday, February 9th. The stock was sold at an average price of $13.03, for a total value of $441,925.48. Following the transaction, the chief executive officer directly owned 249,243 shares of the company's stock, valued at $3,247,636.29. The trade was a 11.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 6.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Farther Finance Advisors LLC increased its position in shares of Select Water Solutions by 160.2% during the third quarter. Farther Finance Advisors LLC now owns 2,615 shares of the company's stock worth $28,000 after buying an additional 1,610 shares during the period. Wilmington Savings Fund Society FSB acquired a new position in shares of Select Water Solutions in the 3rd quarter valued at about $29,000. State of Alaska Department of Revenue bought a new stake in shares of Select Water Solutions during the 3rd quarter valued at about $33,000. Osaic Holdings Inc. grew its stake in Select Water Solutions by 59.9% during the second quarter. Osaic Holdings Inc. now owns 4,883 shares of the company's stock worth $42,000 after purchasing an additional 1,830 shares during the period. Finally, CIBC Private Wealth Group LLC increased its holdings in Select Water Solutions by 2,704.0% in the third quarter. CIBC Private Wealth Group LLC now owns 5,608 shares of the company's stock worth $60,000 after purchasing an additional 5,408 shares in the last quarter. Institutional investors and hedge funds own 81.73% of the company's stock.

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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