ProFrac (NASDAQ:ACDC) Shares Down 4.5% - Here's What Happened

Key Points

• ProFrac shares fell 4.5% to about $4.60, with trading volume roughly 59% below the average session volume.
• Analyst sentiment remains cautious: Morgan Stanley lowered its target to $4.50 with an “underweight” rating, while the consensus rating is “Reduce” and the average price target is $5.25.
• Insiders have recently bought shares, including CEO Matthew Wilks and major shareholder Dan Wilks; insiders purchased approximately 800,000 shares worth $4.0 million over the past three months.

Shares of ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) fell 4.5% on Tuesday . The stock traded as low as $4.62 and last traded at $4.6020. Approximately 590,469 shares traded hands during mid-day trading, a decline of 59% from the average session volume of 1,457,525 shares. The stock had previously closed at $4.82.

Analyst Upgrades and Downgrades

Several research firms have commented on ACDC. Morgan Stanley dropped their target price on ProFrac from $5.00 to $4.50 and set an "underweight" rating on the stock in a report on Thursday, August 20th. Piper Sandler increased their price objective on shares of ProFrac from $5.00 to $6.00 and gave the company a "neutral" rating in a report on Monday, May 18th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ProFrac in a research note on Wednesday, June 24th. Finally, Wall Street Zen cut shares of ProFrac from a "hold" rating to a "sell" rating in a research note on Sunday. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, ProFrac currently has a consensus rating of "Reduce" and a consensus price target of $5.25.

ProFrac Stock Performance

The company has a current ratio of 0.84, a quick ratio of 0.59 and a debt-to-equity ratio of 1.42. The company has a market cap of $835.03 million, a PE ratio of -1.97 and a beta of 1.46. The firm's fifty day moving average is $5.01 and its 200 day moving average is $5.89.

Insider Activity

In related news, CEO Matthew Wilks bought 22,481 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The stock was purchased at an average cost of $5.44 per share, for a total transaction of $122,296.64. Following the completion of the acquisition, the chief executive officer owned 502,097 shares in the company, valued at approximately $2,731,407.68. This trade represents a 4.69% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Dan H. Wilks bought 202,331 shares of the business's stock in a transaction dated Tuesday, August 11th. The shares were acquired at an average cost of $5.44 per share, for a total transaction of $1,100,680.64. Following the transaction, the insider directly owned 87,500,195 shares in the company, valued at approximately $476,001,060.80. This represents a 0.23% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought 800,000 shares of company stock worth $4,018,391 in the last three months. Corporate insiders own 2.23% of the company's stock.

Institutional Trading of ProFrac

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