Wall Street Zen Downgrades 374Water Amid Declining Earnings

Shares of 374Water Inc. (NASDAQ: SCWO) received a downgrade to a sell rating from Wall Street Zen in a report released on Saturday. This follows a similar assessment from Weiss Ratings, which maintained its “sell (e+)” rating in a note published on October 8. Currently, one equity research analyst has assigned a sell rating to the stock, resulting in an average rating of “sell,” according to MarketBeat.com.

Financial Performance and Stock Activity

In the latest earnings report, released on August 12, 374Water reported earnings of ($0.03) per share, falling short of the consensus estimate of ($0.02) by ($0.01). The company’s revenue for the quarter was $0.60 million, significantly below analyst expectations of $5.20 million. These results contributed to a negative net margin of 1,278.90% and a negative return on equity of 138.71%. Following the earnings announcement, 374Water’s stock fell by 5.9%.

In a related development, major shareholder Yaacov Nagar sold 131,680 shares of 374Water on October 17. The shares were sold at an average price of $0.42, totaling $55,305.60. This sale reduced his ownership to 32,977,358 shares, valued at approximately $13,850,490.36. Over the past 90 days, insiders have sold a total of 2,980,967 shares worth $1,420,559, indicating that insiders currently own 20.30% of the company’s stock.

Institutional Investor Activity

Several institutional investors and hedge funds have recently adjusted their stakes in 374Water. Notably, Jane Street Group LLC acquired a new stake valued at around $28,000 during the second quarter. Other new positions were taken by Qube Research & Technologies Ltd for approximately $93,000, Marshall Wace LLP for about $57,000, and CW Advisors LLC with a stake worth $117,000. Additionally, Y Intercept Hong Kong Ltd purchased a new stake valued at around $35,000. Currently, hedge funds and institutional investors own 12.16% of 374Water’s stock.

374Water Inc. specializes in technology that converts wet wastes into recoverable resources in the United States. The company focuses on processing various types of wet waste, including sewage sludge, biosolids, food waste, and hazardous materials. Its proprietary AirSCWO systems utilize supercritical water oxidation to treat diverse waste streams.

This financial landscape raises significant questions about 374Water’s future performance and investor confidence as it continues to navigate a challenging market environment.