Solaris Energy Infrastructure (NYSE:SEI) Shares Gap Up Following Strong Earnings

Key Points

• EPS beat and sharp market reaction: Solaris reported Q EPS of $0.44 vs. $0.26 expected (revenue $196.24M), and the stock gapped up, opening at $77.12 (prior close $70.63) and trading around $79.12—up roughly 9.5%.
• Analyst backdrop mixed but mostly positive: Eight analysts rate the stock Buy and three Hold (average rating "Moderate Buy"), though the MarketBeat average target price of $61.18 sits well below the current share price while individual targets range up to $81.
• Heavy institutional interest and notable fundamentals: Hedge funds and institutions own about 67.44% of the shares with several large stakes recently added, while the fund trades with a high P/E (~108.9), market cap ~$5.29B and a debt/equity of 1.37.

Solaris Energy Infrastructure, Inc. (NYSE:SEI - Get Free Report)'s stock price gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $70.63, but opened at $77.12. Solaris Energy Infrastructure shares last traded at $79.12, with a volume of 893,656 shares traded.

The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.26 by $0.18. The company had revenue of $196.24 million for the quarter. Solaris Energy Infrastructure had a return on equity of 11.83% and a net margin of 4.81%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on SEI shares. Raymond James Financial restated an "outperform" rating on shares of Solaris Energy Infrastructure in a report on Tuesday, January 27th. Northland Securities set a $70.00 price objective on Solaris Energy Infrastructure in a report on Monday, January 5th. Weiss Ratings downgraded Solaris Energy Infrastructure from a "buy (b-)" rating to a "hold (c)" rating in a report on Monday, March 2nd. Morgan Stanley restated an "overweight" rating and issued a $81.00 price objective on shares of Solaris Energy Infrastructure in a report on Monday. Finally, Piper Sandler raised their price objective on Solaris Energy Infrastructure from $65.00 to $72.00 and gave the stock an "overweight" rating in a report on Wednesday, April 15th. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $61.18.

Institutional Investors Weigh In On Solaris Energy Infrastructure

Hedge funds have recently modified their holdings of the stock. CenterBook Partners LP raised its holdings in shares of Solaris Energy Infrastructure by 513.1% during the 3rd quarter. CenterBook Partners LP now owns 415,453 shares of the company's stock valued at $16,606,000 after buying an additional 347,693 shares during the period. Advent International L.P. purchased a new stake in shares of Solaris Energy Infrastructure during the 3rd quarter valued at about $40,246,000. Hiddenite Capital Partners LP purchased a new stake in shares of Solaris Energy Infrastructure during the 3rd quarter valued at about $13,990,000. AGF Management Ltd. purchased a new stake in shares of Solaris Energy Infrastructure during the 3rd quarter valued at about $6,613,000. Finally, Ranger Investment Management L.P. purchased a new stake in shares of Solaris Energy Infrastructure during the 3rd quarter valued at about $17,033,000. 67.44% of the stock is currently owned by hedge funds and other institutional investors.

Solaris Energy Infrastructure Trading Up 9.5%

The company has a debt-to-equity ratio of 1.37, a quick ratio of 2.87 and a current ratio of 2.96. The firm has a fifty day moving average of $57.93 and a 200 day moving average of $53.00. The firm has a market capitalization of $5.29 billion, a PE ratio of 108.90 and a beta of 1.05.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure Fund Inc NYSE: SEI is a closed-end management investment company that seeks to provide total return through a combination of current income and capital appreciation. The fund pursues its objective by investing primarily in equity securities of energy infrastructure companies, including master limited partnerships (MLPs) and other midstream entities. SEI is externally managed by Solaris Asset Management LP, a firm specializing in energy infrastructure investments.

The fund’s portfolio targets businesses involved in the gathering, processing, transportation, storage and terminalling of oil, natural gas and refined products.

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