In a report released today, Lucas Pipes from B.Riley FBR maintained a Buy rating on Smart Sand Inc (SND), with a price target of $5. The company’s shares closed yesterday at $2.35, close to its 52-week low of $1.92.
Pipes wrote:
“Yesterday before the open, Smart Sand (SND) reported 2Q19 adjusted EBITDA of $26.2M, beating both the consensus estimate of $14.8M and our estimate of $14.1M. The beat can be primarily attributed to the collection of $16.3M in shortfall revenue, well above our $5.5M estimate. Average realized prices/ton came in at $42.32, above our $41.00 estimate, leading to a contribution margin/ton (excluding shortfall revenue) of $19.83, above our $18.05 estimate. It was a solid quarter operationally as the company sold 741K tons, a 93K ton sequential increase. SND was particularly active in the spot market during the quarter, as spot sales accounted for 19% of total volumes. Management also reported increased sales activity into basins in the western U.S. During the quarter, SND extended its contracts with EQT through December 2020.”
According to TipRanks.com, Pipes is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -4.1% and a 40.1% success rate. Pipes covers the Basic Materials sector, focusing on stocks such as Peabody Energy Corporation Comm, Novagold Resources Inc New, and Covia Holdings Corporation.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Smart Sand Inc with a $5.50 average price target.
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The company has a one-year high of $6.19 and a one-year low of $1.92. Currently, Smart Sand Inc has an average volume of 290.6K.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SND in relation to earlier this year.
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Smart Sand, Inc. owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin. It supplies industrial sand to the oil and gas industry. The company was founded in 2011 and is headquartered in The Woodlands, TX.
