ProFrac (NASDAQ:ACDC) Stock Price Up 8.2% - What's Next?

Key Points

• ProFrac shares rose 8.2% to about $4.96 in Monday trading, although volume was roughly 71% below the stock’s average daily volume.
• Analyst sentiment remains cautious: ProFrac has a consensus rating of “Reduce”, with an average price target of $5.25. Morgan Stanley cut its target to $4.50 and maintained an “underweight” rating.
• Insiders have been buying shares, including CEO Matthew Wilks and major shareholder Dan H. Wilks; insiders acquired more than 2 million shares worth approximately $9.75 million over the past quarter.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) shares shot up 8.2% on Monday. The stock traded as high as $4.92 and last traded at $4.9550. Approximately 415,415 shares changed hands during mid-day trading, a decline of 71% from the average daily volume of 1,429,247 shares. The stock had previously closed at $4.58.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on ACDC shares. Morgan Stanley reduced their target price on ProFrac from $5.00 to $4.50 and set an "underweight" rating on the stock in a research report on Thursday, August 20th. Wall Street Zen upgraded shares of ProFrac from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of ProFrac in a research report 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 assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $5.25.

ProFrac Price Performance

The company has a 50 day simple moving average of $4.75 and a 200 day simple moving average of $5.77. The company has a market capitalization of $906.05 million, a price-to-earnings ratio of -2.17 and a beta of 1.52. 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 Activity at ProFrac

In other ProFrac news, CEO Matthew Wilks acquired 57,519 shares of the company's stock in a transaction dated Monday, August 10th. The stock was bought at an average price of $4.86 per share, with a total value of $279,542.34. Following the completion of the transaction, the chief executive officer directly owned 479,616 shares of the company's stock, valued at approximately $2,330,933.76. The trade was a 13.63% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, major shareholder Dan H. Wilks bought 517,669 shares of the business's stock in a transaction dated Monday, August 10th. The stock was acquired at an average cost of $4.86 per share, for a total transaction of $2,515,871.34. Following the purchase, the insider owned 87,297,864 shares in the company, valued at approximately $424,267,619.04. This trade represents a 0.60% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have acquired 2,014,454 shares of company stock worth $9,750,117. Company insiders own 2.23% of the company's stock.

Institutional Trading of ProFrac

Several large investors have recently added to or reduced their stakes in ACDC. Walleye Capital LLC raised its stake in shares of ProFrac by 328.6% during 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. Dimensional Fund Advisors LP boosted its stake in shares of ProFrac by 156.5% in the first quarter. Dimensional Fund Advisors LP now owns 390,420 shares of the company's stock valued at $2,421,000 after purchasing an additional 238,210 shares during the period. Renaissance Technologies LLC acquired a new stake in ProFrac during the 1st quarter valued at $872,000. Bank of America Corp DE grew its holdings in ProFrac by 186.9% during the 1st quarter. Bank of America Corp DE now owns 175,664 shares of the company's stock valued at $1,089,000 after purchasing an additional 114,429 shares in the last quarter. Finally, Corient Private Wealth LP purchased a new stake in ProFrac during the 2nd quarter worth $368,000. 12.75% of the stock is currently owned by institutional investors and hedge funds.

About ProFrac

ProFrac Holding Corp. is an energy services company that provides hydraulic fracturing and other completion services to oil and natural gas producers. Its operations support the development of unconventional wells, where specialized equipment and high-pressure pumping are used to stimulate underground formations and improve hydrocarbon recovery.

The company operates an integrated business model spanning stimulation services, proppant production and manufacturing. Its offerings include hydraulic fracturing, well stimulation, frac sand and other proppants, logistics and related equipment manufacturing, maintenance and repair services.

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