Shares of Sable Offshore Corp. (SOC) tumbled 5.91% in pre-market trading on Tuesday after BWS Financial maintained its "Sell" rating on the stock. The negative sentiment from the analyst firm appears to have sparked a sell-off among investors, leading to the significant drop in share price.

Sable Offshore, an oil and gas exploration and development company operating in the United States, has been facing challenges despite its high growth potential. The company reported a substantial net loss of US$629.07 million in 2024, raising concerns about its near-term profitability. However, Sable Offshore boasts a high insider ownership of 24.3%, which typically signals management's confidence in the company's prospects.

The maintained "Sell" rating from BWS Financial likely reflects ongoing concerns about Sable Offshore's financial performance and the broader challenges in the oil and gas sector. While the company is forecasted to experience significant revenue growth, with expectations of over 100% annual increases, the persistent negative rating from analysts may continue to pressure the stock price in the short term. Investors will be closely watching for any signs of improved profitability or positive developments in Sable Offshore's key projects, which are reportedly valued at over $10 billion.