Insider Buying: ProFrac Holding Corp. (NASDAQ:ACDC) Major Shareholder Purchases 2,500,000 Shares of Stock

Key Points

• ProFrac Holding Corp. major shareholder Holdings Lp Thrc purchased 2,500,000 shares at $4.00 each, totaling $10 million and increasing their ownership stake by 3.13%.
• The stock price of ProFrac has recently increased by 8.8% to $3.85, despite reporting a quarterly earnings miss with a loss of ($0.67) per share.
• Equities analysts have lowered their ratings for ProFrac, with Morgan Stanley adjusting its price target from $7.00 to $5.00 and a consensus rating of "Reduce" for the stock.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) major shareholder Holdings Lp Thrc purchased 2,500,000 shares of the business's stock in a transaction dated Thursday, August 14th. The shares were acquired at an average price of $4.00 per share, for a total transaction of $10,000,000.00. Following the acquisition, the insider owned 82,389,657 shares of the company's stock, valued at $329,558,628. This trade represents a 3.13% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Large shareholders that own at least 10% of a company's shares are required to disclose their sales and purchases with the SEC.

ProFrac Stock Up 8.8%

Shares of NASDAQ ACDC traded up $0.31 during trading on Monday, hitting $3.85. 5,006,294 shares of the company traded hands, compared to its average volume of 839,166. The business's fifty day moving average is $7.67 and its 200 day moving average is $6.91. ProFrac Holding Corp. has a fifty-two week low of $3.43 and a fifty-two week high of $10.70. The firm has a market capitalization of $617.08 million, a price-to-earnings ratio of -2.21 and a beta of 1.67. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.62 and a current ratio of 0.91.

ProFrac (NASDAQ:ACDC - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.67) earnings per share for the quarter, missing the consensus estimate of ($0.29) by ($0.38). ProFrac had a negative net margin of 12.89% and a negative return on equity of 22.78%. The company had revenue of $501.90 million for the quarter, compared to analyst estimates of $532.93 million. Equities research analysts predict that ProFrac Holding Corp. will post -0.5 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on ACDC shares. Morgan Stanley cut their price target on shares of ProFrac from $7.00 to $5.00 and set an "underweight" rating on the stock in a report on Friday, May 16th. Wall Street Zen lowered shares of ProFrac from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Bank of America lowered shares of ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 target price on the stock. in a report on Wednesday, June 25th. Finally, Piper Sandler began coverage on shares of ProFrac in a report on Monday, July 14th. They issued a "neutral" rating and a $8.00 target price on the stock. Four research analysts have rated the stock with a sell rating and two have assigned a hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $6.50.

Institutional Investors Weigh In On ProFrac

Several hedge funds and other institutional investors have recently made changes to their positions in ACDC. EverSource Wealth Advisors LLC increased its position in shares of ProFrac by 7,241.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock worth $27,000 after acquiring an additional 3,476 shares in the last quarter. Farther Finance Advisors LLC bought a new stake in ProFrac during the second quarter worth $29,000. Raymond James Financial Inc. purchased a new stake in ProFrac in the 2nd quarter valued at $29,000. BNP Paribas Financial Markets lifted its stake in ProFrac by 389.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 6,122 shares of the company's stock valued at $48,000 after acquiring an additional 4,871 shares in the last quarter. Finally, Exchange Traded Concepts LLC boosted its holdings in ProFrac by 1,258.8% during the 1st quarter. Exchange Traded Concepts LLC now owns 10,164 shares of the company's stock worth $77,000 after acquiring an additional 9,416 shares during the last quarter. 12.75% of the stock is owned by institutional investors.

About ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources.

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