Select Energy Services Inc. (WTTR) looking to reclaim success with recent performance

Select Energy Services Inc. (NYSE: WTTR) stock fell -3.03% on Tuesday to $8.32 against a previous-day closing price of $8.58. With 0.63 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.68 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $8.47 whereas the lowest price it dropped to was $8.26. The 52-week range on WTTR shows that it touched its highest point at $10.43 and its lowest point at $6.02 during that stretch. It currently has a 1-year price target of $11.88. With its current market cap of 1.05 billion, WTTR has annualized dividend of $0.20 while the current yield stands at 2.40%. Beta for the stock currently stands at 2.05.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WTTR was down-trending over the past week, with a drop of -10.73%, but this was down by -4.26% over a month. Three-month performance dropped to -3.93% while six-month performance rose 16.69%. The stock gained 28.59% in the past year, while it has lost -9.96% so far this year. A look at the trailing 12-month EPS for WTTR yields 0.46 with Next year EPS estimates of 1.17. For the next quarter, that number is 0.24. This implies an EPS growth rate of 87.80% for this year and 70.39% for next year.

Float and Shares Shorts:

At present, 110.24 million WTTR shares are outstanding with a float of 84.80 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.97 million, which was 1.72% higher than short shares on Sep 14, 2022. In addition to Mr. John D. Schmitz as the firm’s Pres, CEO & Chairman, Mr. Nicholas L. Swyka serves as its CFO & Sr. VP.

Institutional Ownership:

Through their ownership of 70.50% of WTTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.75% of WTTR, in contrast to 41.17% held by mutual funds. Shares owned by individuals account for 20.94%. As the largest shareholder in WTTR with 12.14% of the stake, SCF Partners, Inc. holds 11,910,756 shares worth 11,910,756. A second-largest stockholder of WTTR, BlackRock Fund Advisors, holds 4,267,043 shares, controlling over 4.35% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in WTTR, holding 3,884,834 shares or 3.96% stake. With a 3.69% stake in WTTR, the VanEck Oil Services ETF is the largest stakeholder. A total of 3,621,645 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.02% of WTTR stock, is the second-largest Mutual Fund holder. It holds 1,983,896 shares valued at 18.33 million. iShares Russell 2000 ETF holds 1.57% of the stake in WTTR, owning 1,537,874 shares worth 14.21 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WTTR since 4 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WTTR analysts setting a high price target of $15.00 and a low target of $8.50, the average target price over the next 12 months is $11.88. Based on these targets, WTTR could surge 80.29% to reach the target high and rise by 2.16% to reach the target low. Reaching the average price target will result in a growth of 42.79% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WTTR will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of $0.75 being high and $0.61 being low. For WTTR, this leads to a yearly average estimate of $0.66. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Select Energy Services Inc. surprised analysts by $0.04 when it reported $0.22 EPS against a consensus estimate of $0.18. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is $0.27 and the low estimate is $0.21. The average estimate for the next quarter is thus $0.24.

Summary of Insider Activity:

Insiders traded WTTR stock several times over the past three months with 1 Buys and 6 Sells. In these transactions, 8,178 shares were bought while 1,371,452 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 29 over the past year. The total number of shares bought during that period was 1,395,727 while 2,220,766 shares were sold.

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