Select Water Solutions (NYSE:WTTR) Shares Gap Down on Disappointing Earnings

Select Water Solutions, Inc. (NYSE:WTTR) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $9.14, but opened at $8.52. Select Water Solutions shares last traded at $9.10, with a volume of 129,526 shares traded.

The company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.13 by ($0.03). Select Water Solutions had a return on equity of 3.70% and a net margin of 2.26%. The business had revenue of $364.22 million during the quarter, compared to analysts’ expectations of $362.93 million. During the same period in the prior year, the firm posted $0.13 EPS. The firm’s revenue for the quarter was down .3% on a year-over-year basis.

Select Water Solutions Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Tuesday, August 5th will be given a $0.07 dividend. The ex-dividend date of this dividend is Tuesday, August 5th. This represents a $0.28 annualized dividend and a yield of 3.2%. Select Water Solutions’s payout ratio is currently 82.35%.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on WTTR shares. Piper Sandler initiated coverage on Select Water Solutions in a research report on Tuesday, July 15th. They issued an “overweight” rating and a $15.00 price objective on the stock. Citigroup dropped their price target on Select Water Solutions from $18.00 to $14.00 and set a “buy” rating on the stock in a research report on Tuesday, May 13th. Finally, Raymond James Financial dropped their price target on Select Water Solutions from $19.00 to $16.00 and set a “strong-buy” rating on the stock in a research report on Friday, May 9th. Three investment analysts have rated the stock with a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, Select Water Solutions presently has an average rating of “Buy” and an average target price of $14.88.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Wells Fargo & Company MN raised its stake in shares of Select Water Solutions by 284.9% during the 4th quarter. Wells Fargo & Company MN now owns 234,356 shares of the company’s stock valued at $3,103,000 after purchasing an additional 173,475 shares during the period. Envestnet Asset Management Inc. raised its stake in shares of Select Water Solutions by 31.2% during the 4th quarter. Envestnet Asset Management Inc. now owns 30,950 shares of the company’s stock valued at $410,000 after purchasing an additional 7,367 shares during the period. Russell Investments Group Ltd. raised its stake in shares of Select Water Solutions by 38.6% during the 4th quarter. Russell Investments Group Ltd. now owns 524,621 shares of the company’s stock valued at $6,946,000 after purchasing an additional 146,186 shares during the period. Invesco Ltd. raised its stake in shares of Select Water Solutions by 9.8% during the 4th quarter. Invesco Ltd. now owns 920,089 shares of the company’s stock valued at $12,182,000 after purchasing an additional 82,053 shares during the period. Finally, Renaissance Technologies LLC raised its stake in shares of Select Water Solutions by 2.9% during the 4th quarter. Renaissance Technologies LLC now owns 607,976 shares of the company’s stock valued at $8,050,000 after purchasing an additional 17,000 shares during the period. Hedge funds and other institutional investors own 81.73% of the company’s stock.

Select Water Solutions Stock Performance

The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.67 and a current ratio of 1.83. The company has a market capitalization of $1.04 billion, a P/E ratio of 27.93 and a beta of 1.26. The business has a 50 day moving average of $9.13 and a 200-day moving average of $9.88.

About Select Water Solutions

Select Water Solutions, Inc, together with its subsidiaries, provides water management and chemical solutions to the energy industry in the United States. The company operates through three segments: Water Services, Water Infrastructure, and Chemical Technologies. The Water Services segment provides water-related services, including water sourcing, water transfer, flowback and well testing, water containment, fluids hauling, water monitoring, and water network automation; technology solutions comprising hydrographic mapping, water volume and quality monitoring, remote pit and tank monitoring, leak detection, asset and fuel tracking, and automated-equipment services, as well as various surface rental equipment and workforce accommodation services.