Solaris Energy Infrastructure (NYSE:SEI) Trading Down 7.9% - Here's Why

Key Points

• Solaris Energy Infrastructure (NYSE:SEI) fell 7.9% in midday trading, with the stock dropping to as low as $55.24 after closing at $60.38 the prior day. Trading volume was also lighter than usual, coming in 49% below the average daily level.
• Analysts remain largely positive on the stock despite the drop: the consensus rating is Moderate Buy with an average price target of $86.25. Recent updates included higher targets from Wells Fargo, Raymond James, Barclays, and Piper Sandler, though Weiss Ratings downgraded the shares to Hold.
• The company recently beat earnings expectations, reporting $0.44 EPS versus estimates of $0.26, while insiders have been selling shares and institutional ownership remains high at 67.44%. Insiders sold over 4.1 million shares in the last quarter, worth about $297.8 million.

Solaris Energy Infrastructure, Inc. (NYSE:SEI - Get Free Report)'s share price fell 7.9% during mid-day trading on Friday . The stock traded as low as $55.24 and last traded at $55.64. 1,362,919 shares traded hands during trading, a decline of 49% from the average daily volume of 2,671,429 shares. The stock had previously closed at $60.38.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Wells Fargo & Company upped their price objective on shares of Solaris Energy Infrastructure from $71.00 to $82.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 29th. Raymond James Financial restated an "outperform" rating and issued a $82.00 target price on shares of Solaris Energy Infrastructure in a report on Wednesday, April 29th. Barclays upped their price target on shares of Solaris Energy Infrastructure from $74.00 to $86.00 and gave the company an "overweight" rating in a research report on Wednesday, April 29th. Weiss Ratings downgraded Solaris Energy Infrastructure from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, July 17th. Finally, Piper Sandler lifted their price objective on Solaris Energy Infrastructure from $65.00 to $72.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 15th. Nine analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Solaris Energy Infrastructure currently has a consensus rating of "Moderate Buy" and a consensus price target of $86.25.

Solaris Energy Infrastructure Stock Down 8.7%

The company has a market cap of $4.05 billion, a price-to-earnings ratio of 61.92 and a beta of 1.17. The stock's 50-day moving average is $71.76 and its 200-day moving average is $63.19. The company has a current ratio of 1.11, a quick ratio of 1.07 and a debt-to-equity ratio of 1.23.

Solaris Energy Infrastructure (NYSE:SEI - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.26 by $0.18. Solaris Energy Infrastructure had a net margin of 6.69% and a return on equity of 13.33%. The business had revenue of $196.24 million during the quarter. On average, analysts anticipate that Solaris Energy Infrastructure, Inc. will post 1.09 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Solaris Energy Infrastructure news, CAO Christopher P. Wirtz sold 700 shares of the firm's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $77.22, for a total value of $54,054.00. Following the transaction, the chief accounting officer directly owned 36,085 shares of the company's stock, valued at approximately $2,786,483.70. This trade represents a 1.90% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Christopher M. Powell sold 36,852 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $74.63, for a total transaction of $2,750,264.76. Following the sale, the insider directly owned 114,117 shares of the company's stock, valued at approximately $8,516,551.71. The trade was a 24.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 4,099,593 shares of company stock worth $297,782,099 in the last quarter. Insiders own 20.23% of the company's stock.

Institutional Investors Weigh In On Solaris Energy Infrastructure

Several institutional investors have recently bought and sold shares of SEI. Vanguard Group Inc. boosted its holdings in Solaris Energy Infrastructure by 9.3% during the 4th quarter. Vanguard Group Inc. now owns 2,913,632 shares of the company's stock worth $133,940,000 after acquiring an additional 248,762 shares during the last quarter. Situational Awareness LP boosted its holdings in Solaris Energy Infrastructure by 62.3% during the fourth quarter. Situational Awareness LP now owns 1,866,500 shares of the company's stock worth $85,803,000 after purchasing an additional 716,200 shares during the last quarter. Principal Financial Group Inc. grew its position in Solaris Energy Infrastructure by 2,120.7% in the 4th quarter. Principal Financial Group Inc. now owns 1,466,343 shares of the company's stock worth $67,408,000 after purchasing an additional 1,400,311 shares in the last quarter. Advent International L.P. increased its stake in Solaris Energy Infrastructure by 25.5% in the 4th quarter. Advent International L.P. now owns 1,263,809 shares of the company's stock valued at $58,097,000 after buying an additional 256,909 shares during the last quarter. Finally, Jennison Associates LLC increased its stake in Solaris Energy Infrastructure by 215.1% in the 1st quarter. Jennison Associates LLC now owns 1,179,736 shares of the company's stock valued at $66,667,000 after buying an additional 805,319 shares during the last quarter. Institutional investors own 67.44% of the company's stock.

About Solaris Energy Infrastructure

Solaris Energy Infrastructure Fund Inc NYSE: SEI is a closed-end management investment company that seeks to provide total return through a combination of current income and capital appreciation. The fund pursues its objective by investing primarily in equity securities of energy infrastructure companies, including master limited partnerships (MLPs) and other midstream entities. SEI is externally managed by Solaris Asset Management LP, a firm specializing in energy infrastructure investments.

The fund’s portfolio targets businesses involved in the gathering, processing, transportation, storage and terminalling of oil, natural gas and refined products.

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