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Have Insiders Been Selling Solaris Oilfield Infrastructure, Inc. (NYSE:SOI) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Solaris Oilfield Infrastructure, Inc. (NYSE:SOI).

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Solaris Oilfield Infrastructure

Solaris Oilfield Infrastructure Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Administrative Officer & Director, Cynthia Durrett, sold US$619k worth of shares at a price of US$14.67 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$12.09. So it may not shed much light on insider confidence at current levels.

We note that in the last year insiders divested 77226 shares for a total of US$1.1m. In the last year Solaris Oilfield Infrastructure insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:SOI Recent Insider Trading, October 9th 2019
NYSE:SOI Recent Insider Trading, October 9th 2019

I will like Solaris Oilfield Infrastructure better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders at Solaris Oilfield Infrastructure Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Solaris Oilfield Infrastructure. In total, insiders dumped US$1.1m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Solaris Oilfield Infrastructure Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Solaris Oilfield Infrastructure insiders own 2.1% of the company, worth about US$12m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Solaris Oilfield Infrastructure Insider Transactions Indicate?

Insiders haven't bought Solaris Oilfield Infrastructure stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. But it is good to see that Solaris Oilfield Infrastructure is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Of course, the future is what matters most. So if you are interested in Solaris Oilfield Infrastructure, you should check out this free report on analyst forecasts for the company.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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