Potential U.S. Silica Holdings, Inc. (NYSE:SLCA) shareholders may wish to note that the CEO & Director, Bryan Shinn, recently bought US$103k worth of stock, paying US$1.03 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 45%.
The Last 12 Months Of Insider Transactions At U.S. Silica Holdings
In the last twelve months, the biggest single purchase by an insider was when Chairman Charles Shaver bought US$131k worth of shares at a price of US$13.06 per share. That means that an insider was happy to buy shares at above the current price of US$1.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 206.00k shares for US$524k. But insiders sold 6957 shares worth US$89k. In the last twelve months there was more buying than selling by U.S. Silica Holdings insiders. They paid about US$2.55 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of U.S. Silica Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, U.S. Silica Holdings insiders have about 1.3% of the stock, worth approximately US$1.2m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
So What Does This Data Suggest About U.S. Silica Holdings Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that U.S. Silica Holdings insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing U.S. Silica Holdings. Be aware that U.S. Silica Holdings is showing 4 warning signs in our investment analysis, and 2 of those don't sit too well with us...
But note: U.S. Silica Holdings 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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