ProFrac (NASDAQ:ACDC) Shares Down 16.1% on Disappointing Earnings

Key Points

• ProFrac shares fell 16.1% after quarterly results missed expectations: loss per share was $0.44 versus the expected $0.26, while revenue of $511.1 million came in below the $555.7 million forecast.
• Analyst sentiment is cautious, with MarketBeat reporting a consensus “Reduce” rating; one analyst rates the stock Buy, two Hold, and two Sell, with an average price target of $5.25.
• Company insiders have been buying shares: insiders purchased about 2.01 million shares worth $9.75 million over the past 90 days.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) traded down 16.1% during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $3.51 and last traded at $3.3320. 155,993 shares traded hands during trading, a decline of 89% from the average daily volume of 1,408,812 shares. The stock had previously closed at $3.97.

The company reported ($0.44) EPS for the quarter, missing analysts' consensus estimates of ($0.26) by ($0.18). The business had revenue of $511.10 million for the quarter, compared to analysts' expectations of $555.66 million. ProFrac had a negative net margin of 22.83% and a negative return on equity of 45.18%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the stock. Wall Street Zen lowered shares of ProFrac from a "hold" rating to a "sell" rating in a report on Saturday, October 24th. Morgan Stanley cut their price target on shares of ProFrac from $5.00 to $4.50 and set an "underweight" rating on the stock in a report on Thursday, August 20th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ProFrac in a research note on Monday, September 21st. One equities research 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's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $5.25.

Insider Activity at ProFrac

In other news, major shareholder Dan H. Wilks acquired 30,820 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were bought at an average cost of $4.81 per share, with a total value of $148,244.20. Following the transaction, the insider owned 88,107,422 shares of the company's stock, valued at $423,796,699.82. This trade represents a 0.03% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Matthew Wilks purchased 22,481 shares of ProFrac stock in a transaction that occurred on Tuesday, August 11th. The shares were purchased at an average cost of $5.44 per share, with a total value of $122,296.64. Following the transaction, the chief executive officer directly owned 502,097 shares of the company's stock, valued at $2,731,407.68. This represents a 4.69% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders have bought 2,014,454 shares of company stock valued at $9,750,117. 2.23% of the stock is owned by insiders.

Institutional Trading of ProFrac

Large investors have recently modified their holdings of the company. Walleye Capital LLC increased its position in shares of ProFrac by 328.6% during the 1st quarter. Walleye Capital LLC now owns 347,911 shares of the company's stock valued at $2,157,000 after purchasing an additional 266,742 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in ProFrac by 156.5% during the first quarter. Dimensional Fund Advisors LP now owns 390,420 shares of the company's stock valued at $2,421,000 after acquiring an additional 238,210 shares during the period. Renaissance Technologies LLC purchased a new position in ProFrac in the 1st quarter worth approximately $872,000. Bank of America Corp DE boosted its position in shares of ProFrac by 186.9% during the first quarter. Bank of America Corp DE now owns 175,664 shares of the company's stock worth $1,089,000 after acquiring an additional 114,429 shares during the last quarter. Finally, Corient Private Wealth LP bought a new position in shares of ProFrac during the 2nd quarter valued at about $368,000. Institutional investors own 12.75% of the company's stock.

ProFrac Price Performance

The firm has a fifty day simple moving average of $4.67 and a two-hundred day simple moving average of $5.53. The firm has a market cap of $586.61 million, a PE ratio of -1.38 and a beta of 1.48. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.59 and a current ratio of 0.84.

ProFrac Company Profile

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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