Insider Trading May 21, 2026 08:52 PM

Crestview Partners Divests Select Water Solutions Stock Amid Valuation Concerns

Major investment firm sells $61.49 million worth of WTTR shares, following recent financial performance and shareholder actions.

By Marcus Reed WTTR

Investment firms associated with Crestview Partners executed a substantial sale of Select Water Solutions stock (WTTR) on May 19, 2026. The transaction involved the disposition of 3,250,000 Class A Common Shares for approximately $61.49 million. This activity occurs as WTTR shares have risen significantly over the past year and some analysis suggests the stock may be valued above its calculated fair value.

Crestview Partners Divests Select Water Solutions Stock Amid Valuation Concerns
WTTR

Key Points

  • Crestview Partners entities sold 3,250,000 shares of WTTR for $61.49 million, amid reports that the stock may be overvalued relative to its calculated Fair Value.
  • Select Water Solutions reported strong Q1 2026 financial results, with EPS reaching $0.08 (a 14.29% beat) and revenue at $366 million (a 6.28% beat).
  • The company held its 2026 Annual Meeting of Stockholders, attended by approximately 87.24% of outstanding shares.

Investment firms connected to Crestview Partners reported a notable divestiture of Select Water Solutions, Inc. (NASDAQ:WTTR) stock on May 19, 2026. The selling activity was conducted by several affiliated entities, including Crestview Partners II GP, L.P., Crestview Partners II SES Investment, LLC, and Crestview Partners II SES Investment B, LLC, which are collectively referred to as the Crestview entities.

The investment groups, identified as ten percent owners of the company, disposed of a total holding comprising 3,250,000 shares of Class A Common Stock. This disposal generated revenues totaling approximately $61.49 million for the selling parties. The sale occurred when WTTR stock was trading near its 52-week high of $20.48, having surged by 149% over the preceding year.

Analysis from InvestingPro indicated that the stock's current valuation may be considered elevated relative to its Fair Value, a potential factor influencing the decision to reduce these significant holdings. At the time of reporting, the company maintained a market capitalization of $2.75 billion.

Details of the Sale and Transactions

The shares were sold at an average price point of $18.92 per share. The disposal was executed through multiple transactions involving specific entities. Crestview Partners II SES Investment B, LLC accounted for the sale of 617,240 shares of Class A Common Stock. Separately, Crestview Partners II SES Investment, LLC sold a larger block of 2,632,760 shares of Class A Common Stock.

It is important to note that these sales followed specific internal transactions involving Crestview Partners II SES Investment, LLC. This entity first redeemed 2,632,760 Common LLC Units belonging to SES Holdings, LLC, which serves as a subsidiary of Select Water Solutions. The redemption process resulted in the acquisition of an equal number of Class A Common Stock shares. In connection with this unit redemption, 2,632,760 shares of Class B Common Stock, which were indirectly held by Crestview Partners II SES Investment, LLC, were canceled without any consideration.

The common LLC Units are structured to be redeemable for Class A Shares on a one-for-one basis. Following the reported transactions and divestitures, the beneficial ownership structure among the entities was adjusted. Specifically, Crestview Partners II SES Investment B, LLC beneficially owns 2,615,972 shares of Class A Common Stock. Additionally, Crestview Partners II SES Investment, LLC indirectly holds a total of 11,158,101 shares of Class B Common Stock and an equivalent amount of 11,158,101 Common LLC Units of SES Holdings.

For the purpose of voting and disposal rights across these holdings, Crestview Partners II GP, L.P. is deemed to hold beneficial ownership and exercises control over the shares and units held by the other associated Crestview entities.

Recent Corporate Developments for Select Water Solutions

Beyond the stock sales, recent reports detailed several operational and financial developments concerning Select Water Solutions. The company released its financial results for the first quarter of 2026, demonstrating performance that exceeded market expectations. Financially, the firm reported an earnings per share (EPS) of $0.08. This figure surpassed the forecasted EPS of $0.07, representing a notable positive surprise of 14.29%. Furthermore, Select Water Solutions announced revenue amounting to $366 million. This total exceeded the anticipated revenue of $344.37 million, marking a 6.28% overperformance.

These financial results were noted as being significant developments for both the company and its investor base. Moreover, Select Water Solutions held its Annual Meeting of Stockholders for 2026. At this gathering, representation was robust, with approximately 87.24% of the total outstanding shares represented either in person or by proxy voting. During the meeting, stockholders cast votes on three distinct proposals, although the specific details pertaining to these proposals were not included in the recent public reports.

Investor Analysis and Market Context

For investors seeking a deeper understanding of WTTR’s financial standing and valuation metrics, platforms like InvestingPro offer comprehensive analysis. This includes access to 15 supplementary ProTips and detailed financial health scores. The service also provides exclusive Pro Research Reports covering WTTR and over 1,400 US equities, designed to convert complex Wall Street data into actionable intelligence for the user.

The company has also been featured in other market updates, such as those generated by AI-powered services that evaluate WTTR against thousands of other companies using more than 100 financial metrics. Such tools assess fundamentals, momentum, and valuation to identify stocks offering potential risk-reward profiles.


(Note: The article contains no explicit mention of the investor's personal investment decisions or specific advice on whether an individual should buy or sell the stock.)

Risks

  • Valuation risk: The sale by Crestview entities suggests potential concerns regarding the stock's valuation being high relative to its intrinsic Fair Value.
  • Market timing risk: Large-scale sales by major institutional investors like Crestview can potentially influence short-term market sentiment and price stability of the ticker.
  • Operational uncertainty: While Q1 results were positive, reliance on specific operational factors (e.g., water infrastructure needs) remains a key determinant of future performance.

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