Gable S Corp, a significant shareholder in Aris Water Solutions Inc. (NYSE:ARIS), has recently sold shares worth approximately $1.86 million. The transactions, disclosed in a recent SEC filing, took place on December 16 and 17. The sale comes as ARIS shows impressive performance, with the stock up over 220% in the past year according to InvestingPro data. The shares were sold at prices ranging from $25.00 to $25.55. Following these sales, Gable S Corp holds 3,150,477 shares in the company. These sales are part of routine transactions and reflect Gable S Corp's ongoing management of its investment portfolio. InvestingPro analysis indicates ARIS is currently undervalued, with strong fundamentals including a healthy current ratio of 1.72 and impressive gross profit margins of nearly 60%. For deeper insights into ARIS's valuation and 10+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Aris Water Solutions has been experiencing significant growth, with a 13.5% revenue increase and a raised target price to $28 by Stifel, due to the company's promising prospects. The company's third-quarter earnings for 2024 showcased a robust performance, with a 6% year-over-year growth in produced water volumes and a 21% increase in adjusted EBITDA, which reached $54.3 million. Aris also raised its 2024 adjusted EBITDA guidance to between $208 and $212 million, reflecting the company's optimistic outlook.
In addition, Aris Water Solutions announced a fourth-quarter dividend of $0.105 per share and projected mid-single-digit growth in produced water volumes for 2025, expected to be driven by customer activity, including major clients like Chevron (NYSE:CVX) and Conoco. The company is actively exploring cost reduction opportunities and potential mineral extraction projects, indicating a strategic focus on operational efficiency and growth.
However, it's important to note that Aris' 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, the company remains committed to improving operational efficiency, as evidenced by a 25% sequential increase in recycled water volumes and advancements in skim oil recovery. These recent developments suggest Aris Water Solutions is navigating potential regulatory hurdles while driving growth.
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