Sell Alert: Amanda Brock Cashes Out $3.32M In Aris Water Solutions Stock

Making a noteworthy insider sell on May 14, Amanda Brock, President and CEO at Aris Water Solutions ARIS, is reported in the latest SEC filing.

What Happened: Brock opted to sell 200,000 shares of Aris Water Solutions, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $3,316,048.

As of Wednesday morning, Aris Water Solutions shares are down by 2.46%, currently priced at $16.29.

About Aris Water Solutions

Aris Water Solutions Inc is an environmental infrastructure and solutions company that helps customers reduce their water and carbon footprints. It has two primary revenue streams. The Produced Water Handling business gathers, transports, and, unless recycled, handles produced water generated from oil and natural gas production. The Water Solutions business develops and operates recycling facilities to treat, store and recycle produced water.

Aris Water Solutions: Financial Performance Dissected

Revenue Growth: Aris Water Solutions displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 12.92%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Exploring Profitability:

• Gross Margin: Achieving a high gross margin of 42.88%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): Aris Water Solutions's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.23.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.32, caution is advised due to increased financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 23.52, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.25, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 5.47 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Uncovering the Importance of Insider Activity

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Aris Water Solutions's Insider Trades.

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