Arlington Capital Management Inc. Invests $3.83 Million in ProPetro Holding Corp. $PUMP

Key Points

• Arlington Capital Management acquired 267,058 ProPetro shares worth approximately $3.83 million, representing about 0.22% of the company and 2.3% of Arlington’s portfolio. Institutional investors and hedge funds collectively own 84.7% of PUMP.
• Analysts maintain a generally positive outlook, with eight Buy, two Hold and one Sell rating; the stock has a “Moderate Buy” consensus and an average price target of $16.12.
• ProPetro reported a quarterly loss of $0.07 per share, missing estimates, while revenue fell 6.3% year over year to $305.8 million. Two insiders also sold shares in August, reducing their holdings by roughly 32% and 56%, respectively.

Arlington Capital Management Inc. purchased a new stake in ProPetro Holding Corp. (NYSE:PUMP - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 267,058 shares of the company's stock, valued at approximately $3,830,000. ProPetro accounts for about 2.3% of Arlington Capital Management Inc.'s investment portfolio, making the stock its 14th largest position. Arlington Capital Management Inc. owned approximately 0.22% of ProPetro as of its most recent SEC filing.

A number of other institutional investors have also added to or reduced their stakes in the company. Assenagon Asset Management S.A. bought a new stake in shares of ProPetro in the 2nd quarter valued at approximately $18,700,000. Y Intercept Hong Kong Ltd bought a new position in shares of ProPetro during the 1st quarter worth approximately $2,045,000. Jefferies Financial Group Inc. bought a new position in shares of ProPetro during the 4th quarter worth approximately $3,085,000. Fund 1 Investments LLC boosted its stake in ProPetro by 2,653.6% in the 2nd quarter. Fund 1 Investments LLC now owns 1,793,882 shares of the company's stock valued at $25,724,000 after buying an additional 1,728,736 shares in the last quarter. Finally, Manatuck Hill Partners LLC acquired a new stake in ProPetro in the 2nd quarter valued at $5,019,000. 84.70% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on PUMP shares. Citigroup lowered their target price on shares of ProPetro from $20.00 to $16.00 and set a "buy" rating on the stock in a report on Monday, August 3rd. Stifel Nicolaus reduced their price target on shares of ProPetro from $23.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, August 3rd. Odeon Capital Group assumed coverage on shares of ProPetro in a research note on Thursday, May 28th. They set a "buy" rating on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ProPetro in a report on Friday, July 31st. Finally, The Goldman Sachs Group reiterated a "neutral" rating and issued a $16.00 target price on shares of ProPetro in a research note on Wednesday, June 3rd. Eight analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, ProPetro presently has an average rating of "Moderate Buy" and an average price target of $16.12.

Insider Activity

In related news, COO Adam Muñoz sold 70,696 shares of the firm's stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $11.17, for a total value of $789,674.32. Following the completion of the sale, the chief operating officer directly owned 148,691 shares in the company, valued at approximately $1,660,878.47. This trade represents a 32.22% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director G Lawrence sold 35,831 shares of ProPetro stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $11.16, for a total value of $399,873.96. Following the transaction, the director owned 28,181 shares of the company's stock, valued at $314,499.96. This represents a 55.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 1.55% of the company's stock.

ProPetro Price Performance

Shares of PUMP stock opened at $12.20 on Thursday. The company has a quick ratio of 4.00, a current ratio of 4.09 and a debt-to-equity ratio of 0.80. ProPetro Holding Corp. has a 12-month low of $4.53 and a 12-month high of $18.50. The firm has a fifty day moving average of $11.82 and a 200-day moving average of $13.75. The firm has a market capitalization of $1.50 billion, a price-to-earnings ratio of -110.87 and a beta of 0.77.

ProPetro (NYSE:PUMP - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.06). ProPetro had a negative net margin of 1.15% and a negative return on equity of 1.49%. The firm had revenue of $305.81 million during the quarter, compared to analyst estimates of $304.48 million. During the same period in the prior year, the business earned ($0.07) EPS. The business's revenue for the quarter was down 6.3% compared to the same quarter last year. On average, equities research analysts forecast that ProPetro Holding Corp. will post -0.1 earnings per share for the current year.

ProPetro Profile

ProPetro Holding Corp is a publicly traded oilfield services company that specializes in hydraulic fracturing and well completion solutions for exploration and production operators. Headquartered in Midland, Texas, the company delivers a comprehensive suite of pressure pumping services designed to optimize reservoir stimulation and enhance hydrocarbon recovery. Its integrated approach encompasses well design, proppant selection, fluid systems and pressure management to support clients' development targets across unconventional plays.

The company's core offerings include high-pressure fracturing, coiled tubing, cementing, acidizing and flowback services, all supported by in-house logistics and digital monitoring tools.

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