Stock Analysis

The Executive VP of Smart Sand, Inc. (NASDAQ:SND), James Young, Just Sold 35% Of Their Holding

  •  Updated
NasdaqGS:SND
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Anyone interested in Smart Sand, Inc. (NASDAQ:SND) should probably be aware that the Executive VP, James Young, recently divested US$125k worth of shares in the company, at an average price of US$2.96 each. That sale was 35% of their holding, so it does make us raise an eyebrow.

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Smart Sand Insider Transactions Over The Last Year

Notably, that recent sale by James Young is the biggest insider sale of Smart Sand shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$3.03). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 35% of James Young's holding.

Insiders in Smart Sand didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:SND Insider Trading Volume March 11th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Smart Sand

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Smart Sand insiders own 11% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Smart Sand Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Smart Sand is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Smart Sand. When we did our research, we found 4 warning signs for Smart Sand (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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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