What Happened?
Shares of water handling and recycling company Aris Water (NYSE: ARIS) fell 15.7% in the afternoon session after the company reported mixed first quarter 2025 results: its EBITDA guidance for next quarter missed. While management kept its full-year EBITDA outlook unchanged, second-quarter guidance implied a sequential decline due to deferred maintenance and lower skim oil prices. On the other hand, ARIS significantly beat analysts' revenue, EPS, and EBITDA expectations. Still, we think this was a weaker print.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Aris Water? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Aris Water’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. But moves this big are rare even for Aris Water and indicate this news significantly impacted the market’s perception of the business.
Aris Water is down 14.5% since the beginning of the year, and at $20.87 per share, it is trading 37.8% below its 52-week high of $33.53 from April 2025. Investors who bought $1,000 worth of Aris Water’s shares at the IPO in October 2021 would now be looking at an investment worth $1,460.
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