Stock Analysis

How Many Smart Sand, Inc. (NASDAQ:SND) Shares Have Insiders Sold, In The Last Year?

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NasdaqGS:SND
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Smart Sand, Inc. (NASDAQ:SND).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

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The Last 12 Months Of Insider Transactions At Smart Sand

In the last twelve months, the biggest single sale by an insider was when the Co-Chairman of the Board, Andrew Speaker, sold US$126k worth of shares at a price of US$2.60 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.00. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Andrew Speaker.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:SND Insider Trading Volume December 7th 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 9.1% of Smart Sand shares, worth about US$7.9m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Smart Sand Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Smart Sand shares in the last quarter. Our analysis of Smart Sand insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To that end, you should learn about the 5 warning signs we've spotted with Smart Sand (including 1 which is a bit concerning).

But note: Smart Sand may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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What are the risks and opportunities for Smart Sand?

Smart Sand, Inc., an integrated frac sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States.

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Rewards

  • Earnings are forecast to grow 97.56% per year

Risks

  • Does not have a meaningful market cap ($86M)

  • Shareholders have been diluted in the past year

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