Insider Trading May 12, 2026 09:40 PM

Select Water Solutions Executive Disposes of $1.91 Million in Class A Shares

COO Michael Skarke executes two-day sell-off as WTTR trades near 52-week highs despite overvaluation assessments.

By Leila Farooq WTTR

Michael Skarke, the Executive Vice President and Chief Operating Officer of Select Water Solutions, Inc. (NASDAQ:WTTR), has completed a significant sale of company stock. Across two trading sessions in May 2026, Skarke liquidated a total of 110,000 shares of Class A Common Stock, resulting in an aggregate transaction value of $1,913,500.The transactions occurred during a period where the company's stock has demonstrated substantial momentum, trading near its 52-week high of $18.50 and reflecting a 113% return over the previous year. This executive movement coincides with internal assessments suggesting the stock may currently be trading above its fair value.

Select Water Solutions Executive Disposes of $1.91 Million in Class A Shares
WTTR

Key Points

  • <strong>Insider Divestment:</strong> COO Michael Skarke sold 110,000 shares over two days in May 2026, totaling $1.91 million. This impacts investor perception of internal valuation sentiment within the energy services sector.
  • <strong>Strong Financial Momentum:</strong> WTTR reported a Q1 2026 earnings surprise of 14.29% and revenue exceeding expectations by 6.28%, indicating strong operational performance in the water solutions market.
  • <strong>Valuation Discrepancy:</strong> While the stock has returned 113% over the past year and is near its 52-week high, current assessments suggest the company may be overvalued relative to its Fair Value.

Select Water Solutions, Inc. (NASDAQ:WTTR) has seen notable insider activity following the recent sale of shares by its top leadership. Michael Skarke, serving as the company's Executive Vice President and Chief Operating Officer, moved to reduce his position through a series of transactions executed on May 11 and May 12, 2026.

Details of the Transactions

The divestment was split into two distinct phases. On May 11, Mr. Skarke disposed of 90,000 shares of Class A Common Stock. These sales were conducted through multiple trades, with prices ranging from $16.715 to $17.610 per share, resulting in a weighted average price of $17.31.

The following day, May 12, the COO sold an additional 20,000 shares of the Class A Common Stock. This second tranche was executed through various trades at prices between $17.52 and $18.10, achieving a weighted average price of $17.78 per share. In total, the 110,000 shares sold represent an aggregate value of $1,913,500.

Following these liquidations, Mr. Skarke maintains a direct ownership stake in Select Water Solutions consisting of 360,738 shares of Class A Common Stock.

Market Context and Valuation

This insider selling arrives while WTTR is performing strongly in the market, currently trading near its 52-week high of $18.50. The stock has experienced a significant upward trajectory, delivering a 113% return over the past twelve months. However, this price action exists alongside analysis indicating that the company appears to be overvalued based on Fair Value assessments, which may provide context for the decision by the executive to sell shares at these levels.

Recent Financial Performance

The stock activity follows a period of robust financial reporting from Select Water Solutions. For the first quarter of 2026, the company delivered results that exceeded market expectations in several key areas:

  • Earnings Per Share (EPS): The company reported an EPS of $0.08, outperforming the forecasted $0.07 by a margin of 14.29%.
  • Revenue: Reported revenue reached $366 million, which was a 6.28% surprise compared to the anticipated $344.37 million.

Additionally, the company recently conducted its 2026 Annual Meeting of Stockholders. The meeting saw high levels of participation, with approximately 87.24% of outstanding shares represented as stockholders voted on three separate proposals. These metrics collectively highlight a period of active shareholder engagement and strong financial output for the organization.

Risks

  • <strong>Overvaluation Risk:</strong> The disparity between the current trading price and Fair Value estimates suggests a risk of price correction, potentially impacting the broader energy services market.
  • <strong>Insider Sentiment:</strong> Large-scale sales by high-ranking executives like the COO can signal a perception that current stock prices have reached a peak, affecting investor confidence.

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