Solaris Energy Infrastructure (NYSE:SEI) Trading Down 8.5% - Here's Why

Key Points

• Solaris Energy Infrastructure (NYSE:SEI) fell 8.5% on Thursday, dropping to around $61.42 after trading as low as $61.34. Volume was well below average, with 722,797 shares traded versus a typical 2.67 million.
• Despite the stock drop, Wall Street remains broadly positive: analysts have issued multiple price-target increases, and the stock carries an average Moderate Buy rating with a consensus target of $86.25.
• The company recently beat earnings expectations, reporting $0.44 EPS versus the $0.26 estimate, while insider trading has been active, including both a large director purchase and a larger director sale over the same period.

Solaris Energy Infrastructure, Inc. (NYSE:SEI - Get Free Report)'s stock price fell 8.5% on Thursday . The company traded as low as $61.34 and last traded at $61.42. 722,797 shares traded hands during mid-day trading, a decline of 73% from the average session volume of 2,667,362 shares. The stock had previously closed at $67.10.

Analysts Set New Price Targets

SEI has been the topic of several research reports. Citigroup lifted their price objective on shares of Solaris Energy Infrastructure from $61.00 to $84.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Wells Fargo & Company raised their price target on shares of Solaris Energy Infrastructure from $71.00 to $82.00 and gave the stock an "equal weight" rating in a research note on Wednesday, April 29th. Wolfe Research initiated coverage on shares of Solaris Energy Infrastructure in a report on Monday, July 6th. They issued an "outperform" rating and a $120.00 price target on the stock. Northland Securities set a $104.00 price objective on Solaris Energy Infrastructure in a research note on Friday, June 12th. Finally, Stifel Nicolaus raised their target price on Solaris Energy Infrastructure from $71.00 to $93.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $86.25.

Solaris Energy Infrastructure Trading Down 10.1%

The firm's 50-day simple moving average is $73.39 and its 200-day simple moving average is $62.53. The firm has a market capitalization of $4.43 billion, a P/E ratio of 67.75 and a beta of 1.17. The company has a quick ratio of 1.07, a current ratio of 1.11 and a debt-to-equity ratio of 1.23.

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

Insiders Place Their Bets

In other news, Director Aj Teague bought 2,750 shares of the business's stock in a transaction dated Friday, May 8th. The shares were purchased at an average price of $72.98 per share, for a total transaction of $200,695.00. Following the completion of the acquisition, the director owned 11,060 shares of the company's stock, valued at approximately $807,158.80. This trade represents a 33.09% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Ray N. Walker, Jr. sold 56,841 shares of the business's stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $72.11, for a total transaction of $4,098,804.51. Following the completion of the transaction, the director owned 5,760 shares in the company, valued at $415,353.60. The trade was a 90.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 4,099,593 shares of company stock valued at $297,782,099 over the last three months. 20.23% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Solaris Energy Infrastructure

Hedge funds have recently made changes to their positions in the business. Balefire LLC purchased a new position in shares of Solaris Energy Infrastructure during the second quarter valued at about $223,000. Wealth High Governance Asset Management Ltda. boosted its holdings in Solaris Energy Infrastructure by 35.0% in the first quarter. Wealth High Governance Asset Management Ltda. now owns 104,336 shares of the company's stock worth $5,896,000 after acquiring an additional 27,066 shares in the last quarter. Glenmede Trust Co. NA grew its position in Solaris Energy Infrastructure by 15.8% during the 1st quarter. Glenmede Trust Co. NA now owns 16,987 shares of the company's stock valued at $960,000 after purchasing an additional 2,316 shares during the last quarter. Amundi grew its holdings in shares of Solaris Energy Infrastructure by 51.7% during the first quarter. Amundi now owns 8,497 shares of the company's stock valued at $480,000 after buying an additional 2,895 shares during the last quarter. Finally, California State Teachers Retirement System boosted its stake in Solaris Energy Infrastructure by 24.2% during the 1st quarter. California State Teachers Retirement System now owns 51,791 shares of the company's stock valued at $2,927,000 after purchasing an additional 10,083 shares during the last quarter. 67.44% of the stock is owned by hedge funds and other institutional investors.

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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