Bullish Aris Water Solutions, Inc. (NYSE:ARIS) insiders filled their treasuries with US$1.4m worth of stock over last year
Over the last year, a good number of insiders have significantly increased their holdings in Aris Water Solutions, Inc. (NYSE:ARIS). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Aris Water Solutions
Aris Water Solutions Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Donald Templin bought US$1m worth of shares at a price of US$13.00 per share. We do like to see buying, but this purchase was made at well below the current price of US$16.07. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Aris Water Solutions insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Aris Water Solutions is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Aris Water Solutions Insiders Bought Stock Recently
It's good to see that Aris Water Solutions insiders have made notable investments in the company's shares. Lead Independent Director Joseph Colonnetta spent US$89k on stock, and there wasn't any selling. This makes one think the business has some good points.
Insider Ownership of Aris Water Solutions
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Aris Water Solutions insiders have about 0.3% of the stock, worth approximately US$2.8m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Aris Water Solutions Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Aris Water Solutions insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Aris Water Solutions is showing 2 warning signs in our investment analysis, and 1 of those is potentially serious...
Of course Aris Water Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
