Carbo’s Earnings Miss Slump Spurs Insider Buy

CARBO Ceramics Inc. (NYSE: CRR) President and CEO Gary Kolstad acquired 10,000 shares at an average price of $6.04 on Monday, totaling $60,400 in common equity. His purchase comes after a steep decline in share price over the month of October, possibly offering a 45 percent premium on the shares.

On October 27, Carbo reported worse-than-expected revenue, missing analyst estimates by $0.09 ($(0.81) versus the estimated $(0.72), revenue at $20.2 million versus the estimate of $25.78 million). In the days following, the company’s share price fell nearly 40 percent from $9.78 to around $5.70 on Monday.

Kolstad’s purchase may be an indication of where he thinks the key resistance lies and how the price of Carbo shares may rebound.

At last check, Carbo was down 1.15 percent at $6.03.