Downgrade Hits Smart Sand Inc (NASDAQ:SND)

Smart Sand Inc (NASDAQ:SND)

Smart Sand Inc (NASDAQ:SND) shares dipped after a Credit Suisse analyst downgraded the shares from an “Outperform” to a “Neutral”. Shares closed on Wednesday at $7.87 and then gapped down to open at $7.06 before hitting the daily low of $6.56. Volumes for shares of the basic materials company were heavy – about three times their daily average.

Smart Sand Inc (NASDAQ:SND) is a producer of Northern White raw frac sand which is used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. Smart Sand Inc (NASDAQ:SND) sells to oil and natural gas exploration and production companies and oilfield service companies. Contracts are usually a combination of long-term take-or-pay contracts and open-market spot sales. Smart Sand owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin. Smart Sand Inc (NASDAQ:SND) also operates a second property in Jackson County, Wisconsin, known as Hixton site.

Before today, most analysts had a price target on SND in the mid-teens. The latest price target from Credit Suisse gives the shares a price target of $8.50. At the end of February, Smart Sand Inc (NASDAQ:SND) traded near $22 but since then the stock has been on a steady slide. Performance reflects the situation as YTD SND shares have lost over 50%. Based on today’s closing, the shares hit a new 52-week low today of $6.82.

Smart Sand Inc (NASDAQ:SND) had sales of $47.7 million in 2015 and that figure increased to $59.2 million for 2016. A similar experience was had by shareholders as the 2015 EPS was $0.34 and that expanded to $0.43 for 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.