Aris Water Solutions Chief Operating Officer Sold $219K In Company Stock

Disclosed on August 12, Dylan David Brunt Van, Chief Operating Officer at Aris Water Solutions ARIS, executed a substantial insider sell as per the latest SEC filing.

What Happened: Van's decision to sell 14,813 shares of Aris Water Solutions was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $219,824.

Aris Water Solutions's shares are actively trading at $15.01, experiencing a down of 0.0% during Tuesday's morning session.

Discovering Aris Water Solutions: A Closer Look

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's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 4.64%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 40.76%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Aris Water Solutions's EPS reflects a decline, falling below the industry average with a current EPS of 0.18.

Debt Management: With a high debt-to-equity ratio of 1.37, Aris Water Solutions faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 20.01 is lower than the industry average, implying a discounted valuation for Aris Water Solutions's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.11 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 5.22, Aris Water Solutions could be considered undervalued.

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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Delving Into 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.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.