ProFrac (NASDAQ:ACDC) Stock Jumps 12.1% - Should You Buy?

Key Points

• ProFrac shares rose 12.1% in Monday’s midday trading to $3.375, while trading volume was about 60% below its average.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a $4.50 average price target, with Piper Sandler and Morgan Stanley recently cutting their targets.
• ProFrac missed quarterly expectations, reporting a $0.45-per-share loss and $511.1 million in revenue versus forecasts of a $0.26 loss and $555.66 million. Insiders bought a total of about 1.44 million shares over the last quarter.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report)'s share price was up 12.1% during mid-day trading on Monday. The company traded as high as $3.43 and last traded at $3.3750. Approximately 578,423 shares traded hands during trading, a decline of 60% from the average session volume of 1,444,803 shares. The stock had previously closed at $3.01.

Analyst Upgrades and Downgrades

ACDC has been the subject of several analyst reports. Piper Sandler lowered their price objective on ProFrac from $6.00 to $5.00 and set a "neutral" rating for the company in a research note on Monday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ProFrac in a report on Monday, September 21st. Morgan Stanley lowered their price objective on ProFrac from $4.50 to $4.00 and set an "underweight" rating on the stock in a research note on Monday. Finally, Wall Street Zen lowered shares of ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday. One analyst has rated the stock with a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $4.50.

ProFrac Stock Up 10.5%

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 cap of $605.56 million, a P/E ratio of -1.53 and a beta of 1.48. The company has a 50 day moving average of $4.58 and a 200-day moving average of $5.51.

ProFrac (NASDAQ:ACDC - Get Free Report) last announced its earnings results on Thursday, November 5th. The company reported ($0.45) earnings per share for the quarter, missing analysts' consensus estimates of ($0.26) by ($0.19). ProFrac had a negative net margin of 20.47% and a negative return on equity of 45.63%. The company had revenue of $511.10 million during the quarter, compared to analysts' expectations of $555.66 million. On average, equities analysts predict that ProFrac Holding Corp. will post -1.34 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Matthew Wilks bought 22,481 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was acquired at an average price of $5.44 per share, with a total value of $122,296.64. Following the completion of the purchase, the chief executive officer directly owned 502,097 shares in the company, valued at $2,731,407.68. This represents a 4.69% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, major shareholder Holdings Lp Thrc bought 30,820 shares of ProFrac stock in a transaction that occurred on Tuesday, August 25th. The shares were acquired at an average cost of $4.81 per share, for a total transaction of $148,244.20. Following the acquisition, the insider owned 83,816,235 shares in the company, valued at $403,156,090.35. The trade was a 0.04% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought a total of 1,439,266 shares of company stock valued at $6,954,703 over the last quarter. 2.23% of the stock is owned by corporate insiders.

Institutional Trading of ProFrac

Institutional investors have recently modified their holdings of the company. Allworth Financial LP raised its position in shares of ProFrac by 88.8% in 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 in the last quarter. State of Alaska Department of Revenue raised its holdings 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 buying an additional 2,795 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in ProFrac in the 2nd quarter valued at approximately $68,000. SG Americas Securities LLC bought a new position in shares of ProFrac during the first quarter valued at $86,000. Finally, AXQ Capital LP boosted its holdings 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 last quarter. 12.75% of the stock is currently owned by hedge funds and other institutional investors.

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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