ProFrac (NASDAQ:ACDC) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded ProFrac to “Sell” from “Hold.” The broader analyst consensus is “Reduce,” with an average price target of $5.25.
• ProFrac’s latest quarter missed expectations: it reported a loss of $0.45 per share versus the $0.26 loss analysts forecast, while revenue of $511.1 million fell short of estimates.
• Company insiders bought about 2.0 million shares worth $9.75 million over the past 90 days, including purchases by the CEO and a major shareholder.

ProFrac (NASDAQ:ACDC - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other research firms have also issued reports on ACDC. Weiss Ratings reiterated a "sell (d-)" rating on shares of ProFrac in a research note on Monday, September 21st. Morgan Stanley dropped their price objective on shares of ProFrac from $5.00 to $4.50 and set an "underweight" rating for the company in a research note on Thursday, August 20th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $5.25.

ProFrac Stock Up 11.1%

Shares of ACDC stock opened at $3.01 on Friday. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.84 and a quick ratio of 0.59. ProFrac has a one year low of $2.66 and a one year high of $8.22. The company's fifty day moving average price is $4.58 and its 200-day moving average price is $5.51. The company has a market capitalization of $548.18 million, a price-to-earnings ratio of -1.38 and a beta of 1.48.

ProFrac (NASDAQ:ACDC - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, missing the consensus estimate 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 22.83% and a negative return on equity of 45.18%. Sell-side analysts expect that ProFrac will post -1.34 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Matthew Wilks purchased 22,481 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were acquired at an average price of $5.44 per share, with a total value of $122,296.64. Following the purchase, the chief executive officer directly owned 502,097 shares of the company's stock, valued at $2,731,407.68. The trade was a 4.69% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, major shareholder Dan H. Wilks purchased 30,820 shares of ProFrac stock in a transaction dated Tuesday, August 25th. The stock was bought at an average cost of $4.81 per share, with a total value of $148,244.20. Following the completion of the purchase, the insider owned 88,107,422 shares in the company, valued at approximately $423,796,699.82. This trade represents a 0.03% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 2,014,454 shares of company stock worth $9,750,117 over the last 90 days. 2.23% of the stock is owned by insiders.

Institutional Trading of ProFrac

Large investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its stake 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 buying an additional 238,210 shares during the last quarter. Walleye Capital LLC increased its stake in ProFrac by 328.6% during 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 during the period. Bank of America Corp DE grew its position in ProFrac by 186.9% in the 1st quarter. Bank of America Corp DE now owns 175,664 shares of the company's stock worth $1,089,000 after purchasing an additional 114,429 shares during the last quarter. Renaissance Technologies LLC purchased a new stake in shares of ProFrac in the first quarter valued at $872,000. Finally, Sei Investments Co. increased its position in ProFrac by 91.6% in the 1st quarter. Sei Investments Co. now owns 99,986 shares of the company's stock worth $620,000 after buying an additional 47,800 shares during the period. Institutional investors own 12.75% of the company's stock.

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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