Insider Buying: ProFrac (NASDAQ:ACDC) Major Shareholder Acquires 363,757 Shares

Key Points

• Major shareholder Dan Wilks purchased 363,757 ProFrac shares at an average price of $4.70, investing approximately $1.71 million and increasing his ownership to 88.08 million shares.
• ProFrac shares fell 1.1% to $4.62, with the stock trading well below its 52-week high of $8.22 and carrying elevated leverage, including a 1.42 debt-to-equity ratio.
• Analyst sentiment remains cautious: ProFrac has a consensus “Reduce” rating and a $5.25 price target, while hedge funds and institutional investors own 12.75% of the company.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) major shareholder Dan Wilks bought 363,757 shares of the business's stock in a transaction that occurred on Monday, August 24th. The shares were acquired at an average cost of $4.70 per share, for a total transaction of $1,709,657.90. Following the completion of the purchase, the insider owned 88,076,602 shares in the company, valued at $413,960,029.40. This trade represents a 0.41% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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 Down 1.1%

ACDC stock traded down $0.05 during midday trading on Wednesday, hitting $4.62. The company's stock had a trading volume of 1,196,358 shares, compared to its average volume of 2,011,822. The firm has a 50-day simple moving average of $4.94 and a 200-day simple moving average of $5.89. The firm has a market capitalization of $841.39 million, a P/E ratio of -1.98 and a beta of 1.46. The company has a quick ratio of 0.59, a current ratio of 0.84 and a debt-to-equity ratio of 1.42. ProFrac Holding Corp. has a 52-week low of $3.08 and a 52-week high of $8.22.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. EverSource Wealth Advisors LLC boosted its stake in ProFrac by 7,241.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock valued at $27,000 after acquiring an additional 3,476 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of ProFrac in the 2nd quarter valued at about $29,000. BNP Paribas Financial Markets boosted its position in shares of ProFrac by 389.4% in the 2nd quarter. BNP Paribas Financial Markets now owns 6,122 shares of the company's stock valued at $48,000 after purchasing an additional 4,871 shares during the period. Tower Research Capital LLC TRC grew its stake in ProFrac by 822.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 11,234 shares of the company's stock worth $87,000 after buying an additional 10,016 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD acquired a new position in ProFrac during the fourth quarter worth approximately $46,000. 12.75% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Wall Street Zen lowered ProFrac from a "hold" rating to a "sell" rating in a research report on Sunday. Morgan Stanley lowered their target price 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. Weiss Ratings restated a "sell (d-)" rating on shares of ProFrac in a research note on Wednesday, June 24th. Finally, Piper Sandler lifted their price target on ProFrac from $5.00 to $6.00 and gave the stock a "neutral" rating in a report on Monday, May 18th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $5.25.

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. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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