ProFrac (NASDAQ:ACDC) Trading Up 7.9% After Insider Buying Activity

Key Points

• ProFrac shares rose 7.9% to approximately $4.99 after major shareholder Dan H. Wilks bought 607,227 shares across August 21–25 for roughly $2.87 million, increasing his already substantial stake.
• Analyst sentiment remains negative: Morgan Stanley cut its price target to $4.50 with an “underweight” rating, Wall Street Zen downgraded the stock to “sell,” and the consensus rating is “Reduce” with a $5.25 target.
• ProFrac continues to show financial and technical weakness, trading below its 200-day moving average and reporting a negative P/E, a 0.84 current ratio, a 0.59 quick ratio, and a 1.42 debt-to-equity ratio.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report)'s stock price traded up 7.9% during trading on Thursday after an insider bought additional shares in the company. The company traded as high as $5.05 and last traded at $4.9850. Approximately 729,850 shares traded hands during trading, a decline of 50% from the average session volume of 1,456,064 shares. The stock had previously closed at $4.62.

Specifically, major shareholder Dan H. Wilks bought 30,820 shares of the company's stock in a transaction on Tuesday, August 25th. The shares were purchased at an average cost of $4.81 per share, for a total transaction of $148,244.20. Following the acquisition, the insider owned 88,107,422 shares of the company's stock, valued at approximately $423,796,699.82. This represents a 0.03% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, major shareholder Dan H. Wilks bought 363,757 shares of ProFrac stock in a transaction that occurred on Monday, August 24th. The shares were acquired at an average price of $4.70 per share, with a total value of $1,709,657.90. Following the acquisition, the insider directly owned 88,076,602 shares of the company's stock, valued at $413,960,029.40. The trade was a 0.41% increase in their position. The SEC filing for this purchase provides additional information. In related news, major shareholder Dan H. Wilks acquired 212,650 shares of the business's stock in a transaction dated Friday, August 21st. The stock was bought at an average price of $4.74 per share, with a total value of $1,007,961.00. Following the acquisition, the insider owned 87,712,845 shares in the company, valued at $415,758,885.30. This represents a 0.24% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analyst Upgrades and Downgrades

ACDC has been the topic of several recent analyst reports. Morgan Stanley dropped their target price 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. Wall Street Zen cut ProFrac from a "hold" rating to a "sell" rating in a research note on Sunday. Weiss Ratings restated a "sell (d-)" rating on shares of ProFrac in a report on Wednesday, June 24th. Finally, Piper Sandler boosted their target price on ProFrac from $5.00 to $6.00 and gave the company a "neutral" rating in a research report on Monday, May 18th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, ProFrac has a consensus rating of "Reduce" and a consensus price target of $5.25.

ProFrac News Roundup

Here are the key news stories impacting ProFrac this week:

• Positive Sentiment: Major shareholder Dan H. Wilks purchased 607,227 shares across August 21, 24, and 25 for approximately $2.87 million, at prices ranging from $4.70 to $4.81. The purchases increased his already sizable stake and may indicate confidence that ACDC is undervalued. Insider buying report
• Positive Sentiment: THRC Holdings LP reported matching purchases of 607,227 shares over the same period, worth approximately $2.87 million. Continued open-market buying by major shareholders can support investor sentiment, although it does not immediately improve ProFrac’s earnings, liquidity, or leverage. SEC Form 4 filing
• Neutral Sentiment: Reported short interest was zero shares as of August 25, unchanged from August 10. However, the filing includes an unreliable “NaN” percentage change, making the data of limited value for gauging short-covering or future trading pressure.
• Negative Sentiment: Analyst sentiment remains weak. Morgan Stanley lowered its price target from $5.00 to $4.50 and maintained an “underweight” rating, while Wall Street Zen downgraded ACDC from “hold” to “sell.” The consensus rating is “Reduce,” despite an average target of $5.25.
• Negative Sentiment: ACDC trades below its 50-day and 200-day moving averages, reflecting ongoing technical weakness. A negative P/E ratio, current ratio of 0.84, quick ratio of 0.59, and debt-to-equity ratio of 1.42 also highlight profitability, liquidity, and balance-sheet risks.

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 stock has a market capitalization of $913.33 million, a P/E ratio of -2.15 and a beta of 1.46. The company's fifty day simple moving average is $4.94 and its 200 day simple moving average is $5.89.

Institutional Investors Weigh In On ProFrac

A number of large investors have recently made changes to their positions in ACDC. Dimensional Fund Advisors LP lifted its position in ProFrac by 156.5% in the 1st 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 in the last quarter. Walleye Capital LLC boosted its position in ProFrac by 328.6% in the first quarter. Walleye Capital LLC now owns 347,911 shares of the company's stock worth $2,157,000 after purchasing an additional 266,742 shares during the last quarter. Renaissance Technologies LLC bought a new position in ProFrac in the first quarter worth approximately $872,000. Quantinno Capital Management LP boosted its stake in shares of ProFrac by 94.4% during the 1st quarter. Quantinno Capital Management LP now owns 48,072 shares of the company's stock worth $298,000 after acquiring an additional 23,347 shares during the last quarter. Finally, Sei Investments Co. grew its stake in shares of ProFrac by 91.6% during the 1st quarter. Sei Investments Co. now owns 99,986 shares of the company's stock valued at $620,000 after acquiring an additional 47,800 shares during the period. 12.75% of the stock is currently owned by institutional investors.

About ProFrac

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source