U.S. Silica Holdings Inc. shares fell Thursday after a Jefferies analyst downgraded his rating on the company's shares due to the price of the stock, which is up about 90 percent since late July.
THE SPARK: Analyst Brad Handler downgraded his rating on U.S. Silica's shares to "Hold" from "Buy." He has a $19 price target on the company's shares.
THE BIG PICTURE: The company, based in Frederick, Md., produces and sells various commercial silica and industrial mineral products.
THE ANALYSIS: Handler said that he remains positive on the company's business fundamentals, including its near- and-medium-term growth prospects. However, the company's capacity growth would need to be more aggressive and it would need to keep its already strong margins to justify a "Buy" rating, which Handler does not see as feasible given the current supply and demand for its products.
SHARE ACTION: Shares fell $1.10 cents, about 5.7 percent, to $18.11.