ProFrac (NASDAQ:ACDC) Shares Break Above 50 Day Moving Average - Should You Sell?

Key Points

• ProFrac shares rose above their 50-day moving average, reaching $5.09 before closing at $4.99, compared with a 50-day average of $4.69.
• Analyst sentiment remains cautious: ProFrac has an average “Reduce” rating, with two Sell, two Hold, and one Buy rating; the consensus price target is $5.25, while Morgan Stanley cut its target to $4.50.
• Insiders purchased more than 2 million shares worth approximately $9.75 million over the past quarter, while institutional investors own 12.75% of the company.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) crossed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $4.69 and traded as high as $5.09. ProFrac shares last traded at $4.99, with a volume of 1,919,937 shares trading hands.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on ACDC shares. Weiss Ratings reissued a "sell (d-)" rating on shares of ProFrac in a research report on Monday, September 21st. Wall Street Zen downgraded shares of ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday, October 24th. Finally, Morgan Stanley reduced their target price on shares of ProFrac from $5.00 to $4.50 and set an "underweight" rating on the stock in a research report on Thursday, August 20th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $5.25.

ProFrac Price Performance

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 $908.79 million, a PE ratio of -2.14 and a beta of 1.52. The firm has a 50-day moving average of $4.69 and a 200 day moving average of $5.52.

Insider Buying and Selling

In other news, major shareholder Holdings Lp Thrc acquired 30,820 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The stock was bought at an average price of $4.81 per share, with a total value of $148,244.20. Following the completion of the acquisition, the insider directly owned 83,816,235 shares of the company's stock, valued at approximately $403,156,090.35. The trade was a 0.04% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Dan H. Wilks purchased 30,820 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were purchased at an average price 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have purchased 2,014,454 shares of company stock worth $9,750,117. 2.23% of the stock is owned by insiders.

Hedge Funds Weigh In On ProFrac

Institutional investors have recently made changes to their positions in the business. State of Alaska Department of Revenue raised its position in ProFrac by 47.6% in the third quarter. State of Alaska Department of Revenue now owns 8,662 shares of the company's stock worth $37,000 after acquiring an additional 2,795 shares during the period. Allworth Financial LP boosted its stake in shares of ProFrac by 88.8% during the 2nd quarter. Allworth Financial LP now owns 6,658 shares of the company's stock worth $39,000 after acquiring an additional 3,131 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of ProFrac during the 2nd quarter valued at $68,000. SG Americas Securities LLC bought a new stake in shares of ProFrac during the 1st quarter valued at $86,000. Finally, AXQ Capital LP grew its position in shares of ProFrac by 11.0% during the 2nd quarter. AXQ Capital LP now owns 45,301 shares of the company's stock valued at $263,000 after acquiring an additional 4,487 shares during the period. Institutional investors own 12.75% of the company's stock.

About ProFrac

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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