Trade Alert: Chief Operating Officer Of Aris Water Solutions D. Van Brunt Has Sold Stock

Some Aris Water Solutions, Inc. (NYSE:ARIS) shareholders may be a little concerned to see that the Chief Operating Officer, D. Van Brunt, recently sold a substantial US$974k worth of stock at a price of US$30.15 per share. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.

View our latest analysis for Aris Water Solutions

Aris Water Solutions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Sherman Scott, for US$12m worth of shares, at about US$25.28 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$29.12. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 15% of Sherman Scott's holding.

Insiders in Aris Water Solutions didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Aris Water Solutions Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.9% of Aris Water Solutions shares, worth about US$53m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Aris Water Solutions Tell Us?

Insiders haven't bought Aris Water Solutions stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Aris Water Solutions is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of 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 makes us a bit uncomfortable...

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.