Morgan Stanley Has Lowered Expectations for ProFrac (NASDAQ:ACDC) Stock Price

Key Points

• Morgan Stanley lowered ProFrac’s price target from $5.00 to $4.50 and maintained an “underweight” rating, implying roughly 5.6% upside from the reported $4.26 share price.
• Analyst sentiment remains cautious: ProFrac has a consensus “Reduce” rating and an average price target of $5.25, based on one Buy, two Hold, and two Sell ratings.
• Despite the negative analyst outlook, insiders purchased about 800,000 shares worth $4.02 million over the past 90 days, while institutional investors own 12.75% of the company.

ProFrac (NASDAQ:ACDC - Get Free Report) had its price objective cut by Morgan Stanley from $5.00 to $4.50 in a report issued on Thursday,Benzinga reports. The firm presently has an "underweight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 5.63% from the company's current price.

Other equities analysts have also issued reports about the company. Wall Street Zen raised shares of ProFrac from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of ProFrac in a research note on Wednesday, June 24th. Finally, Piper Sandler boosted their price target on shares of ProFrac from $5.00 to $6.00 and gave the stock a "neutral" rating in a report on Monday, May 18th. One investment 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's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $5.25.

ProFrac Price Performance

ACDC stock traded down $0.44 during trading on Thursday, reaching $4.26. 492,374 shares of the company were exchanged, compared to its average volume of 1,442,785. ProFrac has a twelve month low of $3.08 and a twelve month high of $8.22. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.84 and a quick ratio of 0.59. The company has a market capitalization of $775.83 million, a price-to-earnings ratio of -1.83 and a beta of 1.46. The company has a 50-day moving average of $5.16 and a two-hundred day moving average of $5.90.

Insider Buying and Selling

In related news, CEO Matthew Wilks bought 57,519 shares of the business's stock in a transaction dated Monday, August 10th. The shares were purchased at an average price of $4.86 per share, with a total value of $279,542.34. Following the purchase, the chief executive officer owned 479,616 shares of the company's stock, valued at approximately $2,330,933.76. This trade represents a 13.63% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, major shareholder Dan H. Wilks bought 517,669 shares of ProFrac stock in a transaction dated Monday, August 10th. The stock was acquired at an average cost of $4.86 per share, for a total transaction of $2,515,871.34. Following the completion of the transaction, the insider directly owned 87,297,864 shares in the company, valued at approximately $424,267,619.04. This trade represents a 0.60% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 800,000 shares of company stock valued at $4,018,391 in the last ninety days. 2.23% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC raised its holdings in ProFrac by 61.7% in the 4th quarter. AQR Capital Management LLC now owns 1,638,822 shares of the company's stock worth $6,375,000 after purchasing an additional 625,596 shares during the period. Hotchkis & Wiley Capital Management LLC increased its position in ProFrac by 27.8% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 1,484,760 shares of the company's stock worth $5,494,000 after buying an additional 322,860 shares in the last quarter. Bridgeway Capital Management LLC increased its position in ProFrac by 2.8% in the second quarter. Bridgeway Capital Management LLC now owns 1,199,562 shares of the company's stock worth $9,309,000 after buying an additional 32,382 shares in the last quarter. Wells Fargo & Company MN raised its stake in shares of ProFrac by 12.1% in the fourth quarter. Wells Fargo & Company MN now owns 1,088,687 shares of the company's stock worth $4,235,000 after buying an additional 117,608 shares during the period. Finally, Empowered Funds LLC raised its stake in shares of ProFrac by 9.6% in the fourth quarter. Empowered Funds LLC now owns 776,893 shares of the company's stock worth $3,022,000 after buying an additional 67,939 shares during the period. Institutional investors own 12.75% of the company's stock.

ProFrac Company Profile

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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