Select Water Solutions (NYSE:WTTR) Shares Gap Down After Earnings Miss

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) shares gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. 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 changing hands.

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

Select Water Solutions Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on WTTR shares. Piper Sandler started coverage on shares of Select Water Solutions in a research note on Tuesday, July 15th. They issued an "overweight" rating and a $15.00 price objective for the company. Citigroup decreased their price objective on shares of Select Water Solutions from $18.00 to $14.00 and set a "buy" rating for the company in a research note on Tuesday, May 13th. Finally, Raymond James Financial decreased their price objective on shares of Select Water Solutions from $19.00 to $16.00 and set a "strong-buy" rating for the company in a research note on Friday, May 9th. Three equities research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, Select Water Solutions has a consensus rating of "Buy" and an average target price of $14.88.

Institutional Investors Weigh In On Select Water Solutions

Several hedge funds have recently made changes to their positions in the business. Summit Investment Advisors Inc. boosted its stake in shares of Select Water Solutions by 13.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 9,545 shares of the company's stock worth $126,000 after buying an additional 1,143 shares during the period. State of Wyoming boosted its stake in shares of Select Water Solutions by 34.1% during the first quarter. State of Wyoming now owns 5,932 shares of the company's stock worth $62,000 after buying an additional 1,509 shares during the period. Tower Research Capital LLC TRC boosted its stake in shares of Select Water Solutions by 128.6% during the fourth quarter. Tower Research Capital LLC TRC now owns 2,711 shares of the company's stock worth $36,000 after buying an additional 1,525 shares during the period. CoreCommodity Management LLC boosted its stake in shares of Select Water Solutions by 1.6% during the fourth quarter. CoreCommodity Management LLC now owns 100,860 shares of the company's stock worth $1,335,000 after buying an additional 1,544 shares during the period. Finally, Profund Advisors LLC boosted its stake in shares of Select Water Solutions by 10.4% during the second quarter. Profund Advisors LLC now owns 17,730 shares of the company's stock worth $153,000 after buying an additional 1,663 shares during the period. Institutional investors and hedge funds own 81.73% of the company's stock.

Select Water Solutions Stock Down 1.3%

The firm has a market cap of $1.01 billion, a price-to-earnings ratio of 27.00 and a beta of 1.26. The firm's 50 day moving average price is $9.14 and its two-hundred day moving average price is $9.78. 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.