NEW YORK (TheStreet) -- U.S. Silica (SLCA) stock gained on Monday after the producer of commercial silica said its industrial and specialty products business would increase prices. The majority of its non-contracted fine whole grain silica sand product (used in glass-melting furnaces and building materials) would increase in price around 20%.
By market close, shares had added 4.5% to $47.85.
"The price increases are being made to support the continued investment the company is making in upgrading its capacity to meet the growing demand for its products and to reflect the tight supply/demand balance in the silica market," the company said in a statement.
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TheStreet Ratings team rates U S SILICA HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate U S SILICA HOLDINGS INC (SLCA) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."