Massive Insider Trade At Select Water Solutions

Brian Szymanski, Chief Accounting Officer at Select Water Solutions WTTR, reported an insider sell on March 8, according to a new SEC filing.

What Happened: Szymanski's decision to sell 8,080 shares of Select Water Solutions was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $67,307.

Tracking the Friday's morning session, Select Water Solutions shares are trading at $8.47, showing a down of 0.0%.

About Select Water Solutions

Select Water Solutions Inc provides sustainable water and chemical solutions to the energy industry. These solutions are supported by the company's critical water infrastructure assets, chemical manufacturing, and water treatment and recycling capabilities. Its reportable segments are Water Services, Water Infrastructure, and Chemical Technologies. It generates the majority of its revenue from Water Services.

Select Water Solutions: A Financial Overview

Revenue Growth: Select Water Solutions's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -1.79%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 14.55%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Select Water Solutions's EPS reflects a decline, falling below the industry average with a current EPS of 0.28.

Debt Management: Select Water Solutions's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.07.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The P/E ratio of 11.76 is lower than the industry average, implying a discounted valuation for Select Water Solutions's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.64, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 5.2, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Select Water Solutions's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.