Some Solaris Energy Infrastructure, Inc. (NYSE:SEI) shareholders may be a little concerned to see that the Independent Director, Ray Walker, recently sold a substantial US$4.1m worth of stock at a price of US$72.11 per share. That diminished their holding by a very significant 91%, which arguably implies a strong desire to reallocate capital.

Solaris Energy Infrastructure Insider Transactions Over The Last Year

Notably, that recent sale by Ray Walker is the biggest insider sale of Solaris Energy Infrastructure shares that we've seen in the last year. That means that even when the share price was below the current price of US$76.23, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 91% of Ray Walker's stake.

In the last twelve months insiders purchased 38.46k shares for US$1.4m. On the other hand they divested 145.18k shares, for US$7.7m. Over the last year we saw more insider selling of Solaris Energy Infrastructure shares, than buying. The average sell price was around US$53.13. It's not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Solaris Energy Infrastructure 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. It's great to see that Solaris Energy Infrastructure insiders own 4.2% of the company, worth about US$229m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Solaris Energy Infrastructure Insiders?

The stark truth for Solaris Energy Infrastructure is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Solaris Energy Infrastructure is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

But note: Solaris Energy Infrastructure may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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.