Zacks Investment Research Downgrades U.S. Silica (SLCA) to Strong Sell

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U.S. Silica (NYSE:SLCA) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Monday.

According to Zacks, “U.S. Silica’s adjusted earnings and revenues for the second quarter of 2018 missed the respective Zacks Consensus Estimate. U.S. Silica is seeing significant cash outflows as reflected by sizable capital spending, which will hurt its ability to generate free cash flows. Its high debt level is another concern. The company has also underperformed the industry it belongs to over a year.”

Other equities research analysts also recently issued research reports about the stock. Credit Suisse Group boosted their target price on shares of U.S. Silica from $36.00 to $38.00 and gave the company an “outperform” rating in a research note on Wednesday, August 1st. Wells Fargo & Co boosted their target price on shares of U.S. Silica from $31.00 to $32.00 and gave the company an “outperform” rating in a research note on Wednesday, April 25th. Barclays set a $40.00 target price on shares of U.S. Silica and gave the company a “buy” rating in a research note on Wednesday, August 1st. Jefferies Financial Group set a $37.00 target price on shares of U.S. Silica and gave the company a “buy” rating in a research note on Wednesday, August 1st. Finally, B. Riley reduced their target price on shares of U.S. Silica from $38.00 to $36.00 and set a “buy” rating on the stock in a research note on Thursday, April 26th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and twelve have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $39.18.

Shares of NYSE:SLCA opened at $22.45 on Monday. U.S. Silica has a 52 week low of $22.10 and a 52 week high of $38.70. The company has a debt-to-equity ratio of 0.99, a quick ratio of 2.27 and a current ratio of 2.88. The firm has a market capitalization of $1.81 billion, a PE ratio of 14.97 and a beta of 2.23.

U.S. Silica (NYSE:SLCA) last issued its earnings results on Tuesday, July 31st. The mining company reported $0.64 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.67 by ($0.03). U.S. Silica had a net margin of 10.79% and a return on equity of 13.14%. The firm had revenue of $427.40 million during the quarter, compared to analyst estimates of $455.35 million. During the same quarter in the prior year, the firm posted $0.38 EPS. The firm’s revenue for the quarter was up 47.1% on a year-over-year basis. sell-side analysts forecast that U.S. Silica will post 2.67 EPS for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of SLCA. LSV Asset Management lifted its position in U.S. Silica by 4,355.2% during the 2nd quarter. LSV Asset Management now owns 3,965,084 shares of the mining company’s stock worth $101,863,000 after buying an additional 3,876,084 shares in the last quarter. Senvest Management LLC lifted its position in U.S. Silica by 383.2% during the 2nd quarter. Senvest Management LLC now owns 1,779,057 shares of the mining company’s stock worth $45,704,000 after buying an additional 1,410,900 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in U.S. Silica by 65.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,372,933 shares of the mining company’s stock worth $86,077,000 after buying an additional 1,331,451 shares in the last quarter. Glenmede Trust Co. NA lifted its position in U.S. Silica by 423.0% during the 2nd quarter. Glenmede Trust Co. NA now owns 1,271,066 shares of the mining company’s stock worth $32,653,000 after buying an additional 1,028,013 shares in the last quarter. Finally, Van Berkom & Associates Inc. lifted its position in U.S. Silica by 44.9% during the 1st quarter. Van Berkom & Associates Inc. now owns 2,722,849 shares of the mining company’s stock worth $69,487,000 after buying an additional 843,808 shares in the last quarter. Institutional investors and hedge funds own 99.21% of the company’s stock.

About U.S. Silica

U.S. Silica Holdings, Inc produces and sells commercial silica in the United States. The company operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. It offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery; and resin coated proppants, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products.

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