Fairmount Santrol Receives a Sell from D.A. Davidson

By Jason Carr

In a report released yesterday, Sonny Randhawa from D.A. Davidson reiterated a Sell rating on Fairmount Santrol (NYSE: FMSA), with a price target of $3. The company’s shares opened today at $8.64, close to its 52-week high of $9.90.

According to TipRanks.com, Randhawa is a top 100 analyst with an average return of 40.6% and a 63.2% success rate. Randhawa covers the Basic Materials sector, focusing on stocks such as Independence Contract Drilling, Parker Drilling Company, and Precision Drilling.

Fairmount Santrol has an analyst consensus of Moderate Buy, with a price target consensus of $8.83.

Based on Fairmount Santrol’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $135 million and GAAP net loss of $20.63 million. In comparison, last year the company earned revenue of $171 million and had a GAAP net loss of $46.2 million.

Based on the recent corporate insider activity of 18 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 FMSA in relation to earlier this year. Most recently, in December 2015, William Patrick Kelly, a Director at FMSA sold 4,500 shares for a total of $10,755.

Fairmount Santrol Holdings, Inc. is a supplier of proppants and sand products. It operates through the following business segments: Proppant Solutions and Industrial & Recreational Products. The Proppant Solutions segment serves the oil and gas recovery markets in the United States, Canada, Argentina, Mexico, China, northern Europe and the Middle East, providing raw and coated proppants primarily for use in hydraulic fracturing. The Industrial & Recreational Products segment provides raw and coated sands to the foundry, building products, glass, turf and landscape and filtration industries. The company was founded in 1986 and is headquartered in Chesterland, OH.