In a recent transaction, Debra Coy, a director at Aris Water Solutions, Inc. (NYSE:ARIS), sold 1,500 shares of the company's Class A Common Stock. The shares were sold at a weighted average price of $25.39, generating a total of $38,085. Following this sale, Coy retains ownership of 42,082 shares in the company. The transaction was executed on November 11, 2024, with the details filed on November 13, 2024. The sale was conducted in multiple trades at prices ranging from $25.35 to $25.48.
In other recent news, Aris Water Solutions has reported solid growth in its third-quarter earnings for 2024, attributing the positive results to increased produced water volumes and heightened completion activity. The company announced a 21% year-over-year increase in its adjusted EBITDA, reaching $54.3 million for the quarter. Additionally, Aris has revised its 2024 adjusted EBITDA guidance upward, now estimating it to fall between $208 and $212 million.
The company has also declared a fourth-quarter dividend of $0.105 per share and anticipates mid-single-digit growth in produced water volumes for 2025, primarily driven by customer activity. Major clients like Chevron (NYSE:CVX) and Conoco are expected to contribute to the continued growth in produced water volumes.
Aris is actively exploring cost reduction opportunities and potential mineral extraction projects. However, it is worth noting that share repurchase programs are currently on hold due to limited float, and potential regulatory impacts from new setback rules in New Mexico are being monitored. Despite these challenges, Aris is optimistic about its financial health and growth prospects for the upcoming year. These are the recent developments for Aris Water Solutions.
InvestingPro Insights
The recent insider sale by Director Debra Coy comes at a time when Aris Water Solutions, Inc. (NYSE:ARIS) is experiencing significant market momentum. According to InvestingPro data, ARIS has seen an impressive 199.61% price total return over the past year, with a particularly strong 44.31% return in the last month alone. This surge in stock price aligns with the company's solid financial performance, as evidenced by its revenue growth of 13.51% over the last twelve months.
InvestingPro Tips highlight that ARIS is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.46 as of the last twelve months ending Q3 2024. This suggests that the stock may still be undervalued despite its recent price appreciation. Additionally, the company boasts impressive gross profit margins, which stood at 59.61% for the same period, indicating strong operational efficiency.
However, investors should note that the stock's RSI suggests it may be in overbought territory, which could explain the timing of the insider sale. It's also worth mentioning that ARIS operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing financial stability.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for ARIS, providing a comprehensive view of the company's financial health and market position.
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