Select Water Solutions (NYSE:WTTR) Shares Gap Up on Earnings Beat

Key Points

• Select Water Solutions shares jumped from a prior close of $18.50 to open at $20.00 after the company reported stronger-than-expected quarterly results.
• The company posted EPS of $0.17, beating estimates by $0.04, while revenue reached $395.81 million—8.7% higher year over year and above the $373.33 million consensus.
• Select Water Solutions declared a quarterly dividend of $0.07, equivalent to $0.28 annually and a 1.4% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $22.40.

Select Water Solutions, Inc. (NYSE:WTTR - Get Free Report)'s share price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $18.50, but opened at $20.00. Select Water Solutions shares last traded at $19.84, with a volume of 225,250 shares.

The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.13 by $0.04. Select Water Solutions had a return on equity of 2.21% and a net margin of 1.54%.The business had revenue of $395.81 million for the quarter, compared to the consensus estimate of $373.33 million. During the same period last year, the business posted $0.10 EPS. The company's revenue was up 8.7% compared to the same quarter last year.

Select Water Solutions Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Friday, August 7th will be given a $0.07 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $0.28 dividend on an annualized basis and a yield of 1.4%. Select Water Solutions's payout ratio is 133.33%.

Analyst Ratings Changes

A number of research firms recently commented on WTTR. Northland Securities set a $21.00 price objective on Select Water Solutions in a research report on Thursday, May 7th. Raymond James Financial reaffirmed a "strong-buy" rating and set a $24.00 target price on shares of Select Water Solutions in a report on Thursday, May 7th. Zacks Research downgraded Select Water Solutions from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 6th. Piper Sandler upped their price target on Select Water Solutions from $16.00 to $21.00 and gave the stock an "overweight" rating in a research report on Monday, May 18th. Finally, Wall Street Zen raised Select Water Solutions from a "hold" rating to a "buy" rating in a research report on Saturday, July 18th. One equities research 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $22.40.

Insider Buying and Selling

In related news, COO Michael Skarke sold 20,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $17.78, for a total value of $355,600.00. Following the completion of the sale, the chief operating officer directly owned 360,738 shares in the company, valued at $6,413,921.64. This trade represents a 5.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard Alan Burnett sold 45,316 shares of Select Water Solutions stock in a transaction on Friday, May 15th. The stock was sold at an average price of $18.74, for a total transaction of $849,221.84. Following the transaction, the director directly owned 71,578 shares of the company's stock, valued at $1,341,371.72. The trade was a 38.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 222,010 shares of company stock valued at $3,925,971. 6.20% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Wilmington Savings Fund Society FSB purchased a new stake in Select Water Solutions in the 3rd quarter valued at about $29,000. Osaic Holdings Inc. lifted its holdings in shares of Select Water Solutions by 59.9% in the 2nd quarter. Osaic Holdings Inc. now owns 4,883 shares of the company's stock worth $42,000 after buying an additional 1,830 shares during the period. CIBC Private Wealth Group LLC lifted its holdings in shares of Select Water Solutions by 2,704.0% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 5,608 shares of the company's stock worth $60,000 after buying an additional 5,408 shares during the period. Jones Financial Companies Lllp grew its position in shares of Select Water Solutions by 5,584.0% during the 1st quarter. Jones Financial Companies Lllp now owns 7,105 shares of the company's stock worth $75,000 after buying an additional 6,980 shares in the last quarter. Finally, Tower Research Capital LLC TRC increased its stake in shares of Select Water Solutions by 190.5% during the second quarter. Tower Research Capital LLC TRC now owns 8,916 shares of the company's stock valued at $77,000 after buying an additional 5,847 shares during the period. Hedge funds and other institutional investors own 81.73% of the company's stock.

Select Water Solutions Price Performance

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 firm has a fifty day moving average of $18.91 and a two-hundred day moving average of $16.24. The stock has a market capitalization of $2.75 billion, a P/E ratio of 94.71 and a beta of 0.99.

Select Water Solutions Company Profile

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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