Morgan Stanley Issues Pessimistic Forecast for ProFrac (NASDAQ:ACDC) Stock Price

Key Points

• Morgan Stanley cut ProFrac’s price target from $4.50 to $4.00 and maintained an “underweight” rating. Analysts’ consensus rating is “Reduce,” with a $4.50 consensus target.
• ProFrac’s latest quarter missed estimates: it reported a loss of $0.45 per share versus the expected $0.26 loss, and revenue of $511.1 million versus $555.7 million expected.
• The stock rose 11.8% to $3.37 in Monday’s trading. Major shareholders bought shares recently, with insiders purchasing about 1.44 million shares worth $6.95 million in the last quarter.

ProFrac (NASDAQ:ACDC - Get Free Report) had its price target lowered by Morgan Stanley from $4.50 to $4.00 in a report issued on Monday, Benzinga reports. The brokerage currently has an "underweight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 18.84% from the stock's previous close.

A number of other equities research analysts have also recently commented on the company. Wall Street Zen cut ProFrac from a "hold" rating to a "sell" rating in a research note on Saturday. Piper Sandler cut their target price on ProFrac from $6.00 to $5.00 and set a "neutral" rating on the stock in a report on Monday. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of ProFrac in a research report on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, ProFrac presently has a consensus rating of "Reduce" and a consensus price target of $4.50.

ProFrac Trading Up 11.8%

ACDC stock traded up $0.36 during mid-day trading on Monday, reaching $3.37. The company's stock had a trading volume of 795,174 shares, compared to its average volume of 1,446,157. ProFrac has a 12 month low of $2.66 and a 12 month high of $8.22. The company has a current ratio of 0.84, a quick ratio of 0.59 and a debt-to-equity ratio of 1.42. The business's 50 day moving average price is $4.58 and its 200 day moving average price is $5.51. The company has a market cap of $613.03 million, a price-to-earnings ratio of -1.54 and a beta of 1.48.

ProFrac (NASDAQ:ACDC - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.26) by ($0.19). The business had revenue of $511.10 million for the quarter, compared to the consensus estimate of $555.66 million. ProFrac had a negative return on equity of 45.63% and a negative net margin of 20.47%. On average, equities research analysts predict that ProFrac will post -1.34 EPS for the current year.

Insider Buying and Selling at ProFrac

In related news, major shareholder Dan H. Wilks acquired 363,757 shares of the firm's stock in a transaction on Monday, August 24th. The stock was purchased at an average cost of $4.70 per share, with a total value of $1,709,657.90. Following the acquisition, the insider owned 88,076,602 shares of the company's stock, valued at approximately $413,960,029.40. This trade represents a 0.41% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, major shareholder Holdings Lp Thrc acquired 363,757 shares of the stock in a transaction dated Monday, August 24th. The stock was bought at an average cost of $4.70 per share, with a total value of $1,709,657.90. Following the completion of the purchase, the insider owned 83,785,415 shares of the company's stock, valued at approximately $393,791,450.50. The trade was a 0.44% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last quarter, insiders purchased 1,439,266 shares of company stock worth $6,954,703. Insiders own 2.23% of the company's stock.

Institutional Investors Weigh In On ProFrac

Institutional investors and hedge funds have recently bought and sold shares of the stock. State of Alaska Department of Revenue boosted its holdings in ProFrac by 47.6% during the 3rd quarter. State of Alaska Department of Revenue now owns 8,662 shares of the company's stock worth $37,000 after acquiring an additional 2,795 shares during the last quarter. Allworth Financial LP raised its holdings in shares of ProFrac by 88.8% in the second quarter. Allworth Financial LP now owns 6,658 shares of the company's stock valued at $39,000 after purchasing an additional 3,131 shares during the last quarter. AXQ Capital LP raised its holdings in shares of ProFrac by 11.0% in the second quarter. AXQ Capital LP now owns 45,301 shares of the company's stock valued at $263,000 after purchasing an additional 4,487 shares during the last quarter. Bank of New York Mellon Corp lifted its position in shares of ProFrac by 17.0% during the first quarter. Bank of New York Mellon Corp now owns 79,914 shares of the company's stock valued at $495,000 after purchasing an additional 11,597 shares in the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new position in ProFrac during the second quarter worth about $68,000. 12.75% of the stock is owned by hedge funds and other institutional investors.

ProFrac Company Profile

ProFrac Holding Corp. is an energy services company that provides hydraulic fracturing and other well-stimulation services to oil and natural gas producers. Through its operations, the company supports the development and completion of unconventional wells, primarily in North American onshore energy markets.

The company's activities include pressure pumping and hydraulic fracturing services, proppant production and distribution, and the manufacture, sale, and maintenance of equipment used in well-completion operations.

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