Select Water Solutions (NYSE:WTTR) Shares Down 4% - Time to Sell?

Key Points

• Shares of Select Water Solutions (NYSE:WTTR) fell about 4% to $14.55 on Monday, with roughly 1.06 million shares changing hands—about 26% below the stock’s average daily volume.
• Analysts remain broadly positive: MarketBeat shows a consensus Buy rating with a $17 price target, and several firms (including Citigroup and Northland) have recently raised targets to $18 or upgraded their ratings.
• The company reported quarterly EPS of -$0.20 (missing estimates) while revenue of $346.5M beat expectations; management declared a $0.07 quarterly dividend (1.9% yield) but the payout ratio is elevated at 133%, with a market cap around $1.75B and a P/E of ~68.8.

Select Water Solutions, Inc. (NYSE:WTTR - Get Free Report)'s share price was down 4% during trading on Monday . The stock traded as low as $14.47 and last traded at $14.5550. Approximately 1,059,215 shares traded hands during mid-day trading, a decline of 26% from the average daily volume of 1,426,923 shares. The stock had previously closed at $15.16.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on WTTR shares. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Select Water Solutions in a research report on Wednesday. Citigroup upped their target price on Select Water Solutions from $16.50 to $18.00 and gave the company a "buy" rating in a research report on Thursday, April 2nd. Wall Street Zen raised Select Water Solutions from a "sell" rating to a "hold" rating in a research report on Saturday, December 27th. Piper Sandler upped their target price on Select Water Solutions from $14.00 to $16.00 and gave the company an "overweight" rating in a research report on Thursday, February 26th. Finally, Northland Securities raised 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 report on Thursday, February 19th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of $17.00.

Select Water Solutions Trading Down 4.7%

The company has a quick ratio of 1.42, a current ratio of 1.57 and a debt-to-equity ratio of 0.31. The firm has a market capitalization of $1.75 billion, a P/E ratio of 68.79 and a beta of 0.97. The firm has a 50 day moving average of $13.98 and a 200-day moving average of $12.03.

Select Water Solutions (NYSE:WTTR - Get Free Report) last issued 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 company had revenue of $346.50 million during the quarter, compared to the consensus estimate 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 quarterly revenue was down .7% on a year-over-year basis. During the same quarter last year, the firm posted ($0.02) earnings per share. On average, equities research analysts predict that Select Water Solutions, Inc. will post 0.91 earnings per share for the current fiscal year.

Select Water Solutions Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, February 18th. Investors of record on Friday, February 6th were paid a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Friday, February 6th. Select Water Solutions's payout ratio is 133.33%.

Insider Activity

In related news, CEO John Schmitz sold 33,916 shares of the business's 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 completion of the sale, the chief executive officer directly owned 249,243 shares in the company, valued at approximately $3,247,636.29. The trade was a 11.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 6.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in WTTR. Deprince Race & Zollo Inc. raised its position in Select Water Solutions by 1,334.5% during the third quarter. Deprince Race & Zollo Inc. now owns 3,783,865 shares of the company's stock valued at $40,450,000 after purchasing an additional 3,520,091 shares in the last quarter. Franklin Resources Inc. raised its position in Select Water Solutions by 56.4% during the fourth 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 in the last quarter. Alliancebernstein L.P. raised its position in Select Water Solutions by 2,133.9% during the third quarter. Alliancebernstein L.P. now owns 2,131,277 shares of the company's stock valued at $22,783,000 after purchasing an additional 2,035,870 shares in the last quarter. Russell Investments Group Ltd. raised its position in Select Water Solutions by 124.2% during the third quarter. Russell Investments Group Ltd. now owns 1,801,488 shares of the company's stock valued at $19,258,000 after purchasing an additional 997,847 shares in the last quarter. Finally, Millennium Management LLC raised its position in Select Water Solutions by 466.8% during the first quarter. Millennium Management LLC now owns 974,821 shares of the company's stock valued at $10,236,000 after purchasing an additional 802,833 shares in the last quarter. 81.73% of the stock is currently 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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