Solaris Energy Infrastructure (NYSE:SEI) Trading Up 9.8% - Still a Buy?

Key Points

• Shares jumped ~9.8% intraday to about $54.31 on Tuesday with volume of roughly 3.05M shares, around 7% above average after a prior close of $49.45.
• Solaris beat expectations—Q4 EPS was $0.35 versus $0.24 consensus on $179.7M revenue—and analysts have a consensus rating of "Moderate Buy" with a $57.10 average price target (ratings range from Strong Buy to Sell).
• Insiders and institutions increased exposure: the CEO and a director bought shares in December, insiders own 21.2% and institutional investors own 67.44%, with notable stake increases from Vanguard, Situational Awareness LP and Principal.

Shares of Solaris Energy Infrastructure, Inc. (NYSE:SEI - Get Free Report) rose 9.8% during mid-day trading on Tuesday . The company traded as high as $54.82 and last traded at $54.31. Approximately 3,046,630 shares traded hands during trading, an increase of 7% from the average daily volume of 2,856,492 shares. The stock had previously closed at $49.45.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on SEI. Raymond James Financial restated an "outperform" rating on shares of Solaris Energy Infrastructure in a research report on Tuesday, January 27th. Weiss Ratings downgraded shares of Solaris Energy Infrastructure from a "buy (b-)" rating to a "hold (c)" rating in a report on Monday, March 2nd. Zacks Research cut Solaris Energy Infrastructure from a "hold" rating to a "strong sell" rating in a research note on Tuesday, January 27th. UBS Group set a $65.00 price objective on Solaris Energy Infrastructure in a report on Tuesday, January 27th. Finally, Citigroup reduced their price objective on Solaris Energy Infrastructure from $62.00 to $61.00 and set a "buy" rating on the stock in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $57.10.

Solaris Energy Infrastructure Trading Up 9.3%

The company has a current ratio of 2.96, a quick ratio of 2.87 and a debt-to-equity ratio of 1.37. The firm has a market capitalization of $3.70 billion, a price-to-earnings ratio of 76.15 and a beta of 1.13. The firm's 50-day moving average is $52.18 and its 200 day moving average is $46.60.

Solaris Energy Infrastructure (NYSE:SEI - Get Free Report) last announced its quarterly earnings results on Tuesday, February 24th. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.11. The firm had revenue of $179.70 million during the quarter. Solaris Energy Infrastructure had a net margin of 4.81% and a return on equity of 11.83%. On average, equities analysts predict that Solaris Energy Infrastructure, Inc. will post 0.36 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Aj Teague acquired 2,310 shares of the business's stock in a transaction that occurred on Wednesday, December 17th. The shares were bought at an average cost of $43.13 per share, with a total value of $99,630.30. Following the completion of the purchase, the director directly owned 106,465 shares in the company, valued at $4,591,835.45. The trade was a 2.22% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Amanda M. Brock purchased 3,669 shares of the company's stock in a transaction dated Wednesday, December 17th. The stock was purchased at an average price of $40.89 per share, for a total transaction of $150,025.41. Following the transaction, the chief executive officer directly owned 141,080 shares in the company, valued at approximately $5,768,761.20. This trade represents a 2.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 21.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Solaris Energy Infrastructure

Several institutional investors have recently made changes to their positions in SEI. Vanguard Group Inc. increased its position in Solaris Energy Infrastructure by 9.3% in the 4th quarter. Vanguard Group Inc. now owns 2,913,632 shares of the company's stock valued at $133,940,000 after buying an additional 248,762 shares in the last quarter. Situational Awareness LP boosted its holdings in Solaris Energy Infrastructure by 62.3% in the fourth quarter. Situational Awareness LP now owns 1,866,500 shares of the company's stock worth $85,803,000 after acquiring an additional 716,200 shares in the last quarter. Westwood Holdings Group Inc. boosted its holdings in Solaris Energy Infrastructure by 11.8% in the second quarter. Westwood Holdings Group Inc. now owns 1,504,738 shares of the company's stock worth $42,569,000 after acquiring an additional 158,338 shares in the last quarter. Principal Financial Group Inc. grew its stake in Solaris Energy Infrastructure by 2,120.7% in the fourth quarter. Principal Financial Group Inc. now owns 1,466,343 shares of the company's stock valued at $67,408,000 after acquiring an additional 1,400,311 shares during the period. Finally, Van ECK Associates Corp grew its stake in Solaris Energy Infrastructure by 623.5% in the third quarter. Van ECK Associates Corp now owns 1,295,898 shares of the company's stock valued at $51,797,000 after acquiring an additional 1,116,794 shares during the period. Institutional investors and hedge funds own 67.44% of the company's stock.

Solaris Energy Infrastructure Company Profile

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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