Select Water Solutions (NYSE:WTTR) Shares Gap Down Following Weak Earnings

Key Points

• Select Water Solutions shares gapped down from $9.14 to $8.52 following an earnings report that missed analysts' expectations, reporting $0.10 earnings per share versus the anticipated $0.13.
• The company recently announced a quarterly dividend of $0.07 per share, yielding 3.1%, with a payout ratio of 82.35%.
• Brokerages have downgraded their price targets for Select Water Solutions, with Citigroup lowering its target from $18.00 to $14.00, highlighting a shift in market sentiment.

Select Water Solutions, Inc. (NYSE:WTTR - Get Free Report)'s share price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.14, but opened at $8.52. Select Water Solutions shares last traded at $9.10, with a volume of 129,526 shares.

The company reported $0.10 EPS for the quarter, missing analysts' consensus estimates of $0.13 by ($0.03). Select Water Solutions had a net margin of 2.26% and a return on equity of 3.69%. The company had revenue of $364.22 million during the quarter, compared to the consensus estimate of $362.93 million. During the same quarter last year, the firm posted $0.13 EPS. The company's quarterly revenue was down .3% on a year-over-year basis.

Select Water Solutions Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th will be given a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 3.3%. The ex-dividend date is Tuesday, August 5th. Select Water Solutions's payout ratio is 90.32%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Piper Sandler assumed coverage on Select Water Solutions in a research report on Tuesday, July 15th. They set an "overweight" rating and a $15.00 target price on the stock. Raymond James Financial cut their target price on Select Water Solutions from $19.00 to $16.00 and set a "strong-buy" rating on the stock in a research report on Friday, May 9th. Finally, Citigroup cut their target price on Select Water Solutions from $18.00 to $14.00 and set a "buy" rating on the stock in a research report on Tuesday, May 13th. Three investment analysts have rated the stock with a buy rating and two have given a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $14.88.

Institutional Investors Weigh In On Select Water Solutions

Several institutional investors and hedge funds have recently made changes to their positions in WTTR. First Trust Advisors LP boosted its holdings in Select Water Solutions by 21.9% in the fourth quarter. First Trust Advisors LP now owns 6,828,596 shares of the company's stock worth $90,411,000 after acquiring an additional 1,226,061 shares in the last quarter. EVR Research LP bought a new position in Select Water Solutions in the first quarter worth approximately $9,660,000. Millennium Management LLC boosted its holdings in Select Water Solutions by 466.8% in the first quarter. Millennium Management LLC now owns 974,821 shares of the company's stock worth $10,236,000 after acquiring an additional 802,833 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in Select Water Solutions by 90.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,212,008 shares of the company's stock worth $12,726,000 after acquiring an additional 576,660 shares in the last quarter. Finally, Hood River Capital Management LLC bought a new position in Select Water Solutions in the fourth quarter worth approximately $7,274,000. Institutional investors own 81.73% of the company's stock.

Select Water Solutions Trading Down 1.3%

The firm has a fifty day simple moving average of $9.14 and a 200-day simple moving average of $9.78. The firm has a market cap of $1.01 billion, a P/E ratio of 27.00 and a beta of 1.26. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.01 and a quick ratio of 1.67.

Select Water Solutions Company Profile

Select Water Solutions, Inc, together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services.