Select Water Solutions (NYSE:WTTR) Stock Falls 5.2% on Disappointing Earnings

Shares of Select Water Solutions, Inc. (NYSE:WTTR) fell 5.2% on Monday after the company announced weaker than expected quarterly earnings. The company traded as low as $15.24 and last traded at $15.3370. Approximately 1,520,285 shares changed hands during trading, a decline of 10% from the average session volume of 1,689,169 shares. The stock had previously closed at $16.18.

The company reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.02). The firm had revenue of $412.19 million for the quarter, compared to analysts’ expectations of $397.96 million. Select Water Solutions had a return on equity of 3.11% and a net margin of 2.24%. The business’s quarterly revenue was up 27.9% on a year-over-year basis. During the same period last year, the company posted $0.03 earnings per share.

Select Water Solutions Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Friday, November 13th will be given a $0.07 dividend. The ex-dividend date is Friday, November 13th. This represents a $0.28 dividend on an annualized basis and a dividend yield of 1.8%. Select Water Solutions’s payout ratio is 100.00%.

Select Water Solutions News Roundup

Here are the key news stories impacting Select Water Solutions this week:

• Positive Sentiment: Third-quarter revenue rose 28% year over year to $412 million, beating the roughly $398 million analyst consensus. Net income increased to $23 million, while adjusted EBITDA grew 57% to $93 million. Company results and updates
• Positive Sentiment: Water Infrastructure delivered record revenue of $110 million, up 40% year over year, highlighting growth in a key business segment. Select also closed its acquisition of Pilot Water Solutions after quarter-end, expanding its water midstream presence in the Delaware Basin. Q3 results coverage
• Neutral Sentiment: Select completed a recapitalization and sale of a majority interest in Peak Rentals during the quarter; the supplied report does not quantify the transaction’s effect on ongoing earnings. Company results and updates
• Negative Sentiment: EPS was $0.16, below analyst estimates of $0.17–$0.18. Although earnings improved from $0.03 a year earlier, the quarterly shortfall may be overshadowing the revenue beat and growth figures. Earnings estimates report

Analysts Set New Price Targets

A number of equities analysts have commented on WTTR shares. UBS Group reissued a “buy” rating and set a $28.00 target price on shares of Select Water Solutions in a report on Wednesday, September 30th. Raymond James Financial lowered Select Water Solutions from a “strong-buy” rating to an “outperform” rating and lifted their price target for the stock from $24.00 to $26.00 in a research note on Thursday, August 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of Select Water Solutions in a research report on Friday, October 2nd. Wall Street Zen downgraded Select Water Solutions from a “buy” rating to a “hold” rating in a research note on Saturday, October 3rd. Finally, Bank of America lifted their target price on shares of Select Water Solutions from $24.00 to $28.00 and gave the stock a “buy” rating in a research note on Wednesday, September 30th. Seven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Select Water Solutions presently has a consensus rating of “Moderate Buy” and an average target price of $24.57.

Institutional Investors Weigh In On Select Water Solutions

Hedge funds and other institutional investors have recently made changes to their positions in the stock. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT grew its holdings in shares of Select Water Solutions by 30.4% in the 3rd quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,330,000 shares of the company’s stock worth $26,321,000 after acquiring an additional 310,000 shares during the period. Ranger Investment Management L.P. purchased a new position in shares of Select Water Solutions during the second quarter valued at approximately $4,791,000. NewEdge Advisors LLC lifted its holdings in shares of Select Water Solutions by 218,652.9% during the 1st quarter. NewEdge Advisors LLC now owns 223,128 shares of the company’s stock worth $3,414,000 after acquiring an additional 223,026 shares during the period. Sei Investments Co. increased its holdings in shares of Select Water Solutions by 100.0% during the 1st quarter. Sei Investments Co. now owns 422,854 shares of the company’s stock worth $6,470,000 after buying an additional 211,421 shares during the last quarter. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Select Water Solutions by 2.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 6,550,309 shares of the company’s stock valued at $100,220,000 after purchasing an additional 185,821 shares in the last quarter. Institutional investors and hedge funds own 81.73% of the company’s stock.

Select Water Solutions Trading Down 6.1%

The business’s 50-day simple moving average is $19.40 and its two-hundred day simple moving average is $17.46. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.58 and a quick ratio of 1.40. The stock has a market capitalization of $2.10 billion, a price-to-earnings ratio of 54.62 and a beta of 0.98.

Select Water Solutions Company Profile

Select Water Solutions, Inc provides water-management and chemical services to oil and natural gas exploration and production companies. Its services support drilling, completions and ongoing production, with a focus on managing water used in and generated by energy operations.

The company’s offerings include water sourcing, transfer, treatment, recycling and disposal, as well as water infrastructure such as pipelines and related facilities. It also supplies specialty chemicals and technical services designed for oilfield operations.

Formerly known as Select Energy Services, the company serves customers in major U.S.