Piper Sandler Has Lowered Expectations for ProFrac (NASDAQ:ACDC) Stock Price

Key Points

• Piper Sandler cut its ProFrac price target from $6 to $5 while maintaining a neutral rating; the new target implies about 51% upside from the cited share price.
• Analyst sentiment is broadly cautious: MarketBeat reports a consensus “Reduce” rating and an average target price of $4.75, with two Sell, two Hold, and one Buy rating.
• ProFrac missed quarterly expectations, reporting a loss of $0.45 per share versus the $0.26 loss forecast and revenue of $511.1 million versus estimates of $555.7 million.

ProFrac (NASDAQ:ACDC - Get Free Report) had its price objective dropped by Piper Sandler from $6.00 to $5.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Piper Sandler's target price points to a potential upside of 50.88% from the stock's current price.

A number of other research firms also recently commented on ACDC. Weiss Ratings reiterated a "sell (d-)" rating on shares of ProFrac in a research note on Monday, September 21st. Wall Street Zen downgraded shares of ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday. Finally, Morgan Stanley dropped their target price on shares of ProFrac from $5.00 to $4.50 and set an "underweight" rating for the company in a research report on Thursday, August 20th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, ProFrac currently has a consensus rating of "Reduce" and an average target price of $4.75.

ProFrac Stock Up 10.1%

ProFrac stock traded up $0.30 during trading on Monday, reaching $3.31. 460,720 shares of the company's stock were exchanged, compared to its average volume of 1,444,618. ProFrac has a 52-week low of $2.66 and a 52-week high of $8.22. The firm has a market cap of $603.56 million, a price-to-earnings ratio of -1.52 and a beta of 1.48. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.59 and a current ratio of 0.84. The company's 50-day moving average is $4.58 and its two-hundred day moving average is $5.51.

ProFrac (NASDAQ:ACDC - Get Free Report) last posted its 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 company had revenue of $511.10 million during the quarter, compared to analyst estimates of $555.66 million. ProFrac had a negative net margin of 20.47% and a negative return on equity of 45.63%. On average, analysts predict that ProFrac will post -1.34 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Matthew Wilks purchased 22,481 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were bought at an average cost of $5.44 per share, for a total transaction of $122,296.64. Following the transaction, the chief executive officer owned 502,097 shares of the company's stock, valued at $2,731,407.68. This represents a 4.69% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, major shareholder Dan H. Wilks acquired 30,820 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were bought at an average price of $4.81 per share, for a total transaction of $148,244.20. Following the purchase, the insider directly owned 88,107,422 shares of the company's stock, valued at approximately $423,796,699.82. This trade represents a 0.03% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased 1,439,266 shares of company stock valued at $6,954,703 over the last 90 days. 2.23% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ProFrac

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP increased its position in shares of ProFrac by 156.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 390,420 shares of the company's stock valued at $2,421,000 after purchasing an additional 238,210 shares during the period. Walleye Capital LLC raised its stake in shares of ProFrac by 328.6% in the 1st quarter. Walleye Capital LLC now owns 347,911 shares of the company's stock worth $2,157,000 after buying an additional 266,742 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of ProFrac by 186.9% in the first quarter. Bank of America Corp DE now owns 175,664 shares of the company's stock valued at $1,089,000 after buying an additional 114,429 shares during the period. Renaissance Technologies LLC acquired a new stake in shares of ProFrac in the first quarter valued at $872,000. Finally, Sei Investments Co. lifted its holdings in shares of ProFrac by 91.6% in the first quarter. Sei Investments Co. now owns 99,986 shares of the company's stock valued at $620,000 after buying an additional 47,800 shares during the period. 12.75% of the stock is owned by 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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