ProPetro (NYSE:PUMP) Hits New 52-Week Low Following Analyst Downgrade

Key Points

• ProPetro shares fell 9.8% to $6.97, reaching a new 52-week low after Barclays cut its price target from $17 to $15, though it maintained an overweight rating.
• Analyst sentiment remains broadly positive, with an average “Moderate Buy” rating and a consensus price target of $15.25; however, several brokerages have recently lowered their targets and one downgraded the stock to sell.
• ProPetro exceeded quarterly expectations, reporting $0.09 in EPS versus a $0.01 loss estimate and $355.38 million in revenue, up 20.9% year over year. Meanwhile, two company insiders sold shares in August, reducing their holdings substantially.

ProPetro Holding Corp. (NYSE:PUMP - Get Free Report) reached a new 52-week low on Monday after Barclays lowered their price target on the stock from $17.00 to $15.00. Barclays currently has an overweight rating on the stock. ProPetro traded as low as $6.93 and last traded at $6.97, with a volume of 4,987,642 shares trading hands. The stock had previously closed at $7.73.

Several other brokerages have also commented on PUMP. Citigroup lowered their price objective on ProPetro from $16.00 to $14.50 and set a "buy" rating for the company in a research report on Friday, October 2nd. Wall Street Zen lowered shares of ProPetro from a "hold" rating to a "sell" rating in a research note on Saturday, August 29th. Piper Sandler decreased their price target on shares of ProPetro from $18.00 to $15.00 and set an "overweight" rating for the company in a research note on Thursday, August 27th. Scotiabank started coverage on shares of ProPetro in a research report on Tuesday, September 29th. They set a "sector perform" rating and a $12.00 price target for the company. Finally, Weiss Ratings lowered shares of ProPetro from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Tuesday, September 29th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $15.25.

Insiders Place Their Bets

In other news, Director G Lawrence sold 35,831 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $11.16, for a total transaction of $399,873.96. Following the completion of the transaction, the director directly owned 28,181 shares in the company, valued at $314,499.96. This trade represents a 55.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Adam Muñoz sold 70,696 shares of ProPetro stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $11.17, for a total value of $789,674.32. Following the completion of the transaction, the chief operating officer directly owned 148,691 shares of the company's stock, valued at approximately $1,660,878.47. This represents a 32.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.55% of the company's stock.

Institutional Investors Weigh In On ProPetro

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. State of Alaska Department of Revenue raised its holdings in ProPetro by 44.6% in the 3rd quarter. State of Alaska Department of Revenue now owns 5,359 shares of the company's stock worth $47,000 after purchasing an additional 1,653 shares during the period. ProShare Advisors LLC increased its holdings in ProPetro by 18.8% in the 3rd quarter. ProShare Advisors LLC now owns 15,571 shares of the company's stock worth $138,000 after acquiring an additional 2,459 shares in the last quarter. Lazard Asset Management LLC increased its holdings in ProPetro by 6.3% in the 1st quarter. Lazard Asset Management LLC now owns 54,637 shares of the company's stock worth $787,000 after acquiring an additional 3,219 shares in the last quarter. Sterling Capital Management LLC raised its stake in ProPetro by 1,062.2% during the 3rd quarter. Sterling Capital Management LLC now owns 4,091 shares of the company's stock worth $36,000 after acquiring an additional 3,739 shares during the period. Finally, Arlington Capital Management INC raised its stake in ProPetro by 1.5% during the 3rd quarter. Arlington Capital Management INC now owns 271,044 shares of the company's stock worth $2,396,000 after acquiring an additional 3,986 shares during the period. Hedge funds and other institutional investors own 84.70% of the company's stock.

ProPetro Trading Down 9.8%

The firm's fifty day simple moving average is $9.59 and its two-hundred day simple moving average is $12.53. The company has a current ratio of 3.49, a quick ratio of 3.41 and a debt-to-equity ratio of 0.83.

ProPetro (NYSE:PUMP - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The company reported $0.09 EPS for the quarter, beating the consensus estimate of ($0.01) by $0.10. The firm had revenue of $355.38 million for the quarter, compared to the consensus estimate of $320.44 million. ProPetro had a net margin of 0.16% and a return on equity of 0.21%. The company's revenue was up 20.9% on a year-over-year basis. During the same period last year, the firm earned ($0.02) EPS. On average, equities research analysts predict that ProPetro Holding Corp. will post -0.09 EPS for the current fiscal year.

ProPetro Company Profile

ProPetro Holding Corp. is an oilfield services company that provides completion and production services to oil and natural gas exploration and production companies. Its primary offerings include hydraulic fracturing, well stimulation and wireline services used to prepare newly drilled wells for production and support ongoing well operations.

The company operates primarily in the Permian Basin, serving customers in the West Texas and southeastern New Mexico region. ProPetro's services are focused on unconventional shale and tight-rock wells, where specialized pumping, pressure-control and downhole technologies are used to improve hydrocarbon recovery.

ProPetro was founded in 2007 and is headquartered in Midland, Texas.

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