Don't Ignore The Insider Selling In Select Water Solutions

Anyone interested in Select Water Solutions, Inc. (NYSE:WTTR) should probably be aware that the Senior VP of Corporate Development, Christopher George, recently divested US$199k worth of shares in the company, at an average price of US$8.63 each. However, the silver lining is that the sale only reduced their total holding by 8.3%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Select Water Solutions

The Last 12 Months Of Insider Transactions At Select Water Solutions

In fact, the recent sale by Christopher George was the biggest sale of Select Water Solutions shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$8.53. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Select Water Solutions insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Select Water Solutions insiders own about US$40m worth of shares. That equates to 3.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Select Water Solutions Insider Transactions Indicate?

Insiders sold Select Water Solutions shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Select Water Solutions is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Select Water Solutions. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Select Water Solutions.

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 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.