Insider Transaction: Gable S Corp Sells $1.48M Worth Of Aris Water Solutions Shares

A substantial insider sell was reported on December 18, by Gable S Corp, 10% Owner at Aris Water Solutions ARIS, based on the recent SEC filing.

What Happened: Corp's decision to sell 57,731 shares of Aris Water Solutions was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,475,027.

Monitoring the market, Aris Water Solutions's shares up by 0.09% at $23.35 during Thursday's morning.

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: A Financial Overview

Revenue Growth: Over the 3 months period, Aris Water Solutions showcased positive performance, achieving a revenue growth rate of 12.55% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Insights into Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 40.77%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Aris Water Solutions exhibits below-average bottom-line performance with a current EPS of 0.23.

Debt Management: Aris Water Solutions's debt-to-equity ratio surpasses industry norms, standing at 1.37. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 28.8 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.69 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 6.39, Aris Water Solutions's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Delving Into the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Navigating the World of Insider 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 Aris Water Solutions's Insider Trades.

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