Select Water Solutions Execs Trade Big, But Stay Bullish on Lithium Pivot and Long‑Term Stakes

Insider Activity Highlights a Strategic Shift

Select Water Solutions Inc. has just recorded a dual‑transaction by Chief Accounting Officer Brian Szymanski on February 9, 2026. The first leg of the move was the vesting of 12,981 performance‑share‑unit (PSU) shares, which were immediately converted into Class A common stock at no cash cost to the company. The second leg saw the sale of 6,247 shares—equal to the shares withheld for tax purposes—at the prevailing market price of $12.96. The net effect was a modest dilution of Szymanski’s holdings to 122,991 shares, while the company gained no new capital.

Although the trade itself is small relative to the company’s market cap of $1.56 billion, the context matters. PSUs are a long‑term incentive, and their vesting signals confidence in the company’s performance trajectory. The simultaneous tax‑withholding sale is a standard mechanism that does not reflect a liquidation of equity for cash. Investors should note that Szymanski’s ownership remains substantial and that his equity incentive plan is still fully vested, implying continued alignment with shareholder interests.

Broader Insider Momentum

The insider filings on February 9 also show a flurry of activity from other senior executives: EVP & COO Michael Skarke purchased 21,375 shares while selling 8,914, EVP Cody Ortowski bought 20,005 and sold 8,393, and EVP‑CSO James Lyons bought 7,695 and sold 2,898. The President & CEO John Schmitz executed three large sales (totaling nearly 67,000 shares) and a sizable purchase of 91,154 shares, netting a slight reduction in his holdings. This pattern—large purchases followed by sales—often indicates a “buy‑then‑sell” strategy used to satisfy tax or liquidity needs while maintaining a long‑term stake. The fact that all trades are executed at or near the current market price ($12.72–$13.03) suggests that executives are not attempting to time the market but rather to manage personal tax and liquidity positions.

Implications for Investors

1. Signal of Confidence: The vesting of PSUs and the continued holding of significant equity by top executives point to confidence in Select Water Solutions’ strategic direction, especially its recent pivot into the lithium carbonate supply chain. This diversification could open new revenue streams beyond traditional oil‑and‑gas water services.

2. Liquidity Considerations: While the individual trades are modest, cumulative insider sales amount to over 130,000 shares in a single day. If this pattern persists, it could create upward pressure on share price if the market interprets it as a sign of insider concern. However, the volume relative to the 10‑day average trading volume (approximately 200,000 shares) suggests the market can absorb the trades without significant volatility.

3. Shareholder Alignment: Executives’ continued ownership—particularly after the PSA vesting—reinforces alignment with shareholders. The modest net dilution (around 1 % of outstanding shares) is unlikely to materially affect earnings per share or market capitalization.

4. Strategic Momentum: The company’s partnership with LibertyStream for lithium carbonate production is a transformative move. Executives’ equity positions suggest they expect the partnership to deliver value, and their trading activity may reflect a strategic view that the company’s valuation will rise as the project progresses.

Conclusion

For investors, the insider trades are a mix of routine equity management and a subtle affirmation of confidence in Select Water Solutions’ evolving business model. The company’s market fundamentals—strong recent weekly and monthly gains, a favorable P/E relative to the sector, and a significant partnership in the growing lithium market—are bolstered by the executives’ continued stakeholding. While the insider activity could signal a short‑term liquidity need, it does not appear to undermine long‑term confidence. Watching the next quarter’s earnings and the progress of the lithium project will provide clearer signals of the company’s trajectory and the true impact of these insider transactions on shareholder value.