Vice President Accounting Of Smart Sand Makes $64K Sale

It was reported on August 19, that Christopher Green, Vice President Accounting at Smart Sand SND executed a significant insider sell, according to an SEC filing.

What Happened: Green's decision to sell 33,000 shares of Smart Sand was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $64,680.

At Tuesday morning, Smart Sand shares are down by 0.0%, trading at $2.05.

Get to Know Smart Sand Better

Smart Sand Inc is a fully integrated frac sand supply and services company that offers complete mine-to-well site proppant supply and logistics solutions. It produces Northern White frac sand, which is a premium proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. Its product portfolio includes Smart System, which includes SmartBelt, SmartDepot Silo and SmartPath Loader. The company caters its products and services to oil and natural gas exploration and production companies and oilfield service companies. The majority of its revenue comes from Sand Sales, followed by logistics.

Smart Sand's Financial Performance

Decline in Revenue: Over the 3 months period, Smart Sand faced challenges, resulting in a decline of approximately -1.31% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Evaluating Earnings Performance:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 17.71%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Smart Sand's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.01.

Debt Management: Smart Sand's debt-to-equity ratio is below the industry average. With a ratio of 0.17, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Smart Sand's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 68.33.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.27, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 4.08, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Understanding Crucial Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Smart Sand's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.