Will U.S. Silica Holdings Gain Upward Momentum?



SLCA’s stock performance

U.S. Silica Holdings (SLCA) stock has fallen 40% so far in 2018. The stock has seen a downward trend since mid-May, and it hit a new 52-week low this month. It has recovered a bit since then.

U.S. Silica Holdings has underperformed Hi-Crush Partners (HCLP), which is up ~13% YTD (year-to-date). The Energy Select Sector SPDR ETF (XLE) is up ~2% YTD, while crude oil prices have risen ~16% YTD.

Covia Holdings (CVIA) is currently trading at $9.48—less than one-third of its price in June. The graph above shows the YTD performances of U.S. Silica Holdings and Hi-Crush Partners. As the graph shows, U.S. Silica Holdings has fallen despite a rise in crude oil prices.

U.S. Silica Holdings is trading well below its 50-day and 200-day moving averages. Its 50-day moving average may act as a resistance level for it in the near term.

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Short interest

Short interest in U.S. Silica Holdings rose 44% to ~16.1 million shorted shares on August 31. The stock’s short interest ratio is ~6x, indicating that it may take about six days to cover all the open short positions in the stock.

In this series, we’ll discuss the operating and financial performances of U.S. Silica Holdings along with its valuation.

Next, we’ll discuss the factors that could be impacting U.S. Silica Holdings stock.


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