Anyone interested in Select Water Solutions, Inc. (NYSE:WTTR) should probably be aware that the Independent Director, Robin Fielder, recently divested US$454k worth of shares in the company, at an average price of US$16.80 each. The eyebrow raising move amounted to a reduction of 38% in their holding.

The Last 12 Months Of Insider Transactions At Select Water Solutions

In the last twelve months, the biggest single sale by an insider was when the President, John Schmitz, sold US$3.5m worth of shares at a price of US$11.10 per share. That means that even when the share price was below the current price of US$16.80, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 8.0% of John Schmitz's holding.

Insiders in Select Water Solutions didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Select Water Solutions better if I see some big insider buys.

Does Select Water Solutions Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Select Water Solutions insiders own about US$117m worth of shares (which is 5.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Select Water Solutions Tell Us?

An insider sold Select Water Solutions shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.

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.

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.