What Happened?

Shares of water handling and recycling company Aris Water (NYSE:ARIS) jumped 23.6% in the afternoon session after the company reported impressive fourth-quarter results that blew past analysts' revenue and EBITDA estimates. Looking ahead, EBITDA guidance for the next quarter came in below Wall Street estimates, partly due to anticipated customer shut-ins from weather disruptions. Meanwhile, the company raised its quarterly dividend by 33%, signaling confidence in its cash flow despite near-term headwinds. Overall, this was a decent quarter.

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What The Market Is Telling Us

Aris Water’s shares are very volatile and have had 28 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 up 27.6% since the beginning of the year, and at $31.18 per share, has set a new 52-week high. 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 $2,180.

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