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

Select Water Solutions, Inc. (NYSE:WTTR)’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 trading hands.

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

Select Water Solutions Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Friday, August 7th will be paid a dividend of $0.07 per share. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Friday, August 7th. Select Water Solutions’s dividend payout ratio is 133.33%.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Raymond James Financial reiterated a “strong-buy” rating and issued a $24.00 target price on shares of Select Water Solutions in a research note on Thursday, May 7th. Piper Sandler boosted their target price on shares of Select Water Solutions from $16.00 to $21.00 and gave the stock an “overweight” rating in a research report on Monday, May 18th. Wall Street Zen raised shares of Select Water Solutions from a “hold” rating to a “buy” rating in a report on Saturday, July 18th. Citigroup lifted their price objective on Select Water Solutions from $18.00 to $24.00 and gave the stock a “buy” rating in a report on Tuesday, May 12th. Finally, Northland Securities set a $21.00 price objective on Select Water Solutions in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $22.40.

Insider Buying and Selling at Select Water Solutions

In related news, Director Robin H. Fielder sold 27,010 shares of Select Water Solutions stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $16.80, for a total value of $453,768.00. Following the completion of the transaction, the director owned 43,315 shares in the company, valued at approximately $727,692. The trade was a 38.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Richard Alan Burnett sold 45,316 shares of the company’s stock in a transaction that occurred 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 sale, the director directly owned 71,578 shares in the company, valued at approximately $1,341,371.72. The trade was a 38.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 222,010 shares of company stock worth $3,925,971. 6.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Select Water Solutions

A number of institutional investors and hedge funds have recently modified their holdings of WTTR. Franklin Resources Inc. increased its holdings in Select Water Solutions by 56.4% in the fourth quarter. Franklin Resources Inc. now owns 7,726,049 shares of the company’s stock valued at $81,278,000 after buying an additional 2,786,172 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in Select Water Solutions by 2.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,550,309 shares of the company’s stock worth $100,220,000 after buying an additional 185,821 shares during the last quarter. Wellington Management Group LLP boosted its holdings in shares of Select Water Solutions by 16.0% in the third quarter. Wellington Management Group LLP now owns 5,126,486 shares of the company’s stock valued at $54,802,000 after acquiring an additional 705,612 shares during the period. State Street Corp boosted its stake in Select Water Solutions by 15.1% during the 4th quarter. State Street Corp now owns 3,246,517 shares of the company’s stock worth $34,153,000 after purchasing an additional 426,822 shares during the period. Finally, Encompass Capital Advisors LLC boosted its stake in Select Water Solutions by 31.5% during the 4th quarter. Encompass Capital Advisors LLC now owns 3,118,824 shares of the company’s stock worth $32,810,000 after purchasing an additional 746,534 shares during the period. Institutional investors and hedge funds own 81.73% of the company’s stock.

Select Water Solutions Trading Up 7.5%

The business’s 50 day simple moving average is $18.91 and its 200 day simple moving average is $16.24. 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 company has a market capitalization of $2.75 billion, a price-to-earnings 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.