Tidewater (NYSE:TDW) Shares Down 6.1% - Should You Sell?

Key Points

• Tidewater Inc. shares fell by 6.1%, trading as low as $53.60, amidst a significant drop in trading volume compared to the average session.
• Wall Street analysts have mixed ratings on Tidewater, with a consensus rating of Moderate Buy and an average price target of $69.00.
• The company announced a stock repurchase plan worth $500 million, signaling management's belief that the stock is undervalued.

Shares of Tidewater Inc. (NYSE:TDW - Get Free Report) traded down 6.1% during mid-day trading on Monday . The stock traded as low as $53.60 and last traded at $54.09. 167,292 shares were traded during mid-day trading, a decline of 84% from the average session volume of 1,015,431 shares. The stock had previously closed at $57.58.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Zacks Research upgraded shares of Tidewater from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 13th. BTIG Research cut shares of Tidewater from a "buy" rating to a "neutral" rating in a report on Monday, July 14th. Fearnley Fonds upgraded shares of Tidewater to a "hold" rating in a report on Tuesday, September 16th. Finally, Evercore ISI lifted their price target on shares of Tidewater from $60.00 to $67.00 and gave the stock an "in-line" rating in a research note on Wednesday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $69.00.

Tidewater Stock Down 7.2%

The company has a quick ratio of 2.04, a current ratio of 2.11 and a debt-to-equity ratio of 0.47. The stock has a market cap of $2.65 billion, a price-to-earnings ratio of 13.79 and a beta of 1.09. The business's fifty day moving average is $56.37 and its two-hundred day moving average is $47.02.

Tidewater (NYSE:TDW - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The oil and gas company reported $1.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.95. Tidewater had a net margin of 14.62% and a return on equity of 16.74%. The firm had revenue of $341.43 million during the quarter, compared to analysts' expectations of $317.28 million. During the same quarter in the previous year, the business posted $0.94 earnings per share. The business's quarterly revenue was up .6% compared to the same quarter last year. Tidewater has set its FY 2025 guidance at EPS. Equities analysts forecast that Tidewater Inc. will post 3.25 earnings per share for the current fiscal year.

Tidewater declared that its Board of Directors has initiated a stock repurchase plan on Monday, August 4th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the oil and gas company to buy up to 21.3% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity

In related news, EVP Daniel A. Hudson sold 10,000 shares of the company's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $57.56, for a total value of $575,600.00. Following the completion of the sale, the executive vice president owned 75,986 shares in the company, valued at $4,373,754.16. This represents a 11.63% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 6.60% of the company's stock.

Hedge Funds Weigh In On Tidewater

A number of large investors have recently made changes to their positions in TDW. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Tidewater by 2,321.4% in the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 678 shares of the oil and gas company's stock valued at $29,000 after purchasing an additional 650 shares in the last quarter. Bogart Wealth LLC acquired a new stake in Tidewater in the 1st quarter valued at about $30,000. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Tidewater in the 1st quarter valued at about $40,000. Parkside Financial Bank & Trust grew its stake in Tidewater by 4,245.0% in the 2nd quarter. Parkside Financial Bank & Trust now owns 869 shares of the oil and gas company's stock valued at $40,000 after acquiring an additional 849 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd grew its stake in Tidewater by 2,510.5% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 992 shares of the oil and gas company's stock valued at $42,000 after acquiring an additional 954 shares during the last quarter. Hedge funds and other institutional investors own 95.13% of the company's stock.

About Tidewater

Tidewater Inc, together with its subsidiaries, provides offshore support vessels and marine support services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of offshore oil and gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying.

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