Tidewater (NYSE:TDW) Shares Gap Up After Strong Earnings

Key Points

• Tidewater's stock price surged from $48.91 to $55.00 after reporting earnings of $1.23 per share, significantly surpassing analysts' expectations of $0.28.
• The company announced a $500 million share repurchase plan, allowing it to buy back up to 21.3% of its shares, indicating management's belief that the stock is undervalued.
• Despite strong earnings, analysts have mixed ratings on the stock, with four analysts currently holding a "hold" rating and a price target averaging $69.33.

Tidewater Inc. (NYSE:TDW - Get Free Report)'s stock price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $48.91, but opened at $55.00. Tidewater shares last traded at $58.35, with a volume of 311,837 shares trading hands.

The oil and gas company reported $1.23 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.95. The company had revenue of $341.43 million during the quarter, compared to analysts' expectations of $317.28 million. Tidewater had a net margin of 12.98% and a return on equity of 15.97%. Tidewater's revenue for the quarter was up .6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.94 earnings per share.

Tidewater declared that its board has authorized a share repurchase plan on Monday, August 4th that allows the company to repurchase $500.00 million in outstanding shares. This repurchase authorization allows the oil and gas company to repurchase up to 21.3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on TDW shares. BTIG Research cut shares of Tidewater from a "buy" rating to a "neutral" rating in a report on Monday, July 14th. Raymond James Financial cut their price target on shares of Tidewater from $76.00 to $70.00 and set an "outperform" rating on the stock in a report on Wednesday, May 7th. Four analysts have rated the stock with a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $69.33.

Insiders Place Their Bets

In other Tidewater news, EVP Daniel A. Hudson sold 5,000 shares of the firm's stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $50.02, for a total value of $250,100.00. Following the sale, the executive vice president owned 85,986 shares of the company's stock, valued at $4,301,019.72. This trade represents a 5.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Robert Robotti bought 15,000 shares of the company's stock in a transaction dated Wednesday, June 4th. The stock was bought at an average cost of $42.05 per share, with a total value of $630,750.00. Following the completion of the transaction, the director owned 2,234,957 shares in the company, valued at approximately $93,979,941.85. This trade represents a 0.68% increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders acquired 25,560 shares of company stock worth $1,074,858. Insiders own 8.33% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Bogart Wealth LLC boosted its position in shares of Tidewater by 28.6% in the second quarter. Bogart Wealth LLC now owns 900 shares of the oil and gas company's stock worth $42,000 after purchasing an additional 200 shares during the period. Covestor Ltd boosted its position in shares of Tidewater by 14.1% in the first quarter. Covestor Ltd now owns 2,075 shares of the oil and gas company's stock worth $88,000 after purchasing an additional 256 shares during the period. Signaturefd LLC boosted its position in shares of Tidewater by 33.3% in the first quarter. Signaturefd LLC now owns 1,128 shares of the oil and gas company's stock worth $48,000 after purchasing an additional 282 shares during the period. Illinois Municipal Retirement Fund lifted its holdings in shares of Tidewater by 1.5% in the first quarter. Illinois Municipal Retirement Fund now owns 27,448 shares of the oil and gas company's stock worth $1,160,000 after buying an additional 405 shares in the last quarter. Finally, CWM LLC lifted its holdings in shares of Tidewater by 83.6% in the second quarter. CWM LLC now owns 927 shares of the oil and gas company's stock worth $43,000 after buying an additional 422 shares in the last quarter. 95.13% of the stock is owned by hedge funds and other institutional investors.

Tidewater Price Performance

The firm's fifty day moving average price is $47.37 and its 200 day moving average price is $44.95. The company has a quick ratio of 2.00, a current ratio of 2.07 and a debt-to-equity ratio of 0.50. The stock has a market cap of $2.87 billion, a PE ratio of 17.41 and a beta of 1.08.

Tidewater Company Profile

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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