ProFrac (NASDAQ:ACDC) Stock Price Down 6.7% - Here's What Happened

Key Points

• ProFrac shares fell 6.7% to $4.825, with trading volume plunging 95% below the average session volume.
• Analyst sentiment remains cautious: Morgan Stanley cut its price target to $4.50 and assigned an “underweight” rating, while the overall consensus is “Reduce” with a $5.25 target.
• Despite the sell-off, insiders bought more than 2 million shares worth $9.75 million over the past quarter, and institutional ownership stands at 12.75%.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report)'s share price dropped 6.7% during trading on Monday . The stock traded as low as $4.87 and last traded at $4.8250. Approximately 68,140 shares traded hands during trading, a decline of 95% from the average session volume of 1,435,260 shares. The stock had previously closed at $5.17.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of ProFrac in a research note on Wednesday, June 24th. Wall Street Zen downgraded shares of ProFrac from a "hold" rating to a "sell" rating in a research note on Sunday. Finally, Morgan Stanley dropped their target price on shares of ProFrac from $5.00 to $4.50 and set an "underweight" rating for the company in a research report on Thursday, August 20th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, ProFrac currently has an average rating of "Reduce" and an average target price of $5.25.

ProFrac Price Performance

The stock has a market capitalization of $904.24 million, a P/E ratio of -2.13 and a beta of 1.49. The company has a 50 day moving average of $4.82 and a 200-day moving average of $5.86. The company has a quick ratio of 0.59, a current ratio of 0.84 and a debt-to-equity ratio of 1.42.

Insider Buying and Selling

In other ProFrac news, major shareholder Dan H. Wilks bought 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 acquisition, the insider directly owned 88,107,422 shares of the company's stock, valued at approximately $423,796,699.82. The trade was a 0.03% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Matthew Wilks bought 22,481 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was bought 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 owned 502,097 shares of the company's stock, valued at $2,731,407.68. This trade represents a 4.69% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have acquired a total of 2,014,454 shares of company stock worth $9,750,117 over the last quarter. 2.23% of the stock is owned by company insiders.

Institutional Investors Weigh In On ProFrac

A number of hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP increased its holdings in shares of ProFrac by 156.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 390,420 shares of the company's stock worth $2,421,000 after acquiring an additional 238,210 shares during the period. Walleye Capital LLC increased its stake in shares of ProFrac by 328.6% in the first 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 period. Bank of America Corp DE raised its holdings 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 valued at $1,089,000 after buying an additional 114,429 shares during the last quarter. Renaissance Technologies LLC bought a new stake in shares of ProFrac during the first quarter valued at approximately $872,000. Finally, Sei Investments Co. boosted its position in shares of ProFrac by 91.6% during the first quarter. Sei Investments Co. now owns 99,986 shares of the company's stock worth $620,000 after buying an additional 47,800 shares during the period. 12.75% of the stock is currently owned by institutional investors.

About ProFrac

ProFrac Holding Corp. NASDAQ: ACDC is an energy services company that provides hydraulic fracturing and other well-completion services to oil and natural gas exploration and production companies. Its services are used primarily during the development of unconventional wells, including shale and tight-oil formations.

The company operates a vertically integrated business that includes stimulation services, proppant production and equipment manufacturing. Its offerings include hydraulic fracturing fleets, frac sand and other proppants, well-completion chemicals, and related equipment and services designed to support the drilling and completion process.

ProFrac serves customers in major U.S.

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