John Schmitz, President and CEO of Select Water Solutions, Inc. (NYSE:WTTR), recently executed significant stock sales, according to a recent SEC filing. Schmitz sold a total of 300,000 shares of Class A Common Stock across two transactions. The sales, completed on November 8 and November 11, were executed at weighted average prices of $13.93 and $13.70 per share, respectively. These transactions amounted to a total value of approximately $4.13 million. Following these sales, Schmitz continues to hold a substantial number of shares indirectly through B-29 Investments, LP.
In other recent news, Select Water Solutions has reported significant growth in its third-quarter earnings. The company noted a robust 20% increase in third-quarter revenues and a 33% rise in gross profit before depreciation and amortization (D&A) compared to the second quarter of 2024. Year-over-year figures were even more compelling, with revenue up by 40% and gross profit surging by 99% compared to the third quarter of 2023.
Select Water Solutions also secured 25,000 acres under long-term contracts in the Permian Basin and two pipeline agreements in the Bakken. The company anticipates Q4 margins to remain strong at 51%-54% despite an expected 10%-15% revenue decline in the Water Infrastructure segment. The net income for Q3 2024 stood at $19 million, with an adjusted EBITDA of $73 million, surpassing guidance.
The company has allocated approximately $150 million for growth capital in the water infrastructure segment to enhance revenue and profitability. Despite expected seasonal declines, Select Water Solutions expects significant growth in 2025, focusing on expanding its infrastructure network and enhancing its production base. These developments indicate a positive outlook for the company, as noted by Vice President Garrett Williams, CEO John Schmitz, and CFO Chris George.
InvestingPro Insights
The recent stock sales by Select Water Solutions' CEO John Schmitz come at a time when the company's stock is showing strong performance. According to InvestingPro data, WTTR has experienced significant returns over various time frames, with a 22.55% return in the last week, 19.09% in the last month, and an impressive 91.13% over the past year. The stock is currently trading near its 52-week high, with its price at 95.89% of the highest point in the past year.
These robust returns align with an InvestingPro Tip indicating that WTTR has raised its dividend for three consecutive years, potentially contributing to investor confidence. The company's dividend yield stands at 2.05%, with a notable dividend growth of 40% in the last twelve months.
However, investors should note that the stock's RSI suggests it may be in overbought territory, according to another InvestingPro Tip. This could explain the timing of Schmitz's stock sales, as executives often sell shares when they believe the stock price is favorable.
From a financial perspective, WTTR appears to be in a solid position. The company's revenue for the last twelve months as of Q3 2024 was $1.48 billion, with a gross profit margin of 25.65%. Additionally, WTTR operates with a moderate level of debt and has liquid assets exceeding short-term obligations, as highlighted by InvestingPro Tips.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for WTTR, providing a deeper understanding of the company's financial health and market position.
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