ProPetro (NYSE:PUMP) Shares Down 8.7% - Here's What Happened

Key Points

• ProPetro shares fell 8.7% to about $10.46, with trading volume reaching 2.05 million shares, roughly 47% below the average daily volume.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and an average price target of $15.78, despite several recent target-price cuts and one downgrade to “Sell.”
• The company recently missed quarterly EPS expectations, reporting a loss of $0.07 per share versus the projected $0.01 loss, while revenue declined 6.3% year over year to $305.81 million.

ProPetro Holding Corp. (NYSE:PUMP - Get Free Report)'s stock price was down 8.7% during trading on Monday . The stock traded as low as $10.51 and last traded at $10.4570. 2,046,211 shares were traded during trading, a decline of 47% from the average daily volume of 3,876,642 shares. The stock had previously closed at $11.45.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on PUMP shares. Morgan Stanley started coverage on shares of ProPetro in a research report on Monday. They set an "equal weight" rating and a $13.00 price target for the company. Wall Street Zen lowered ProPetro from a "hold" rating to a "sell" rating in a research report on Saturday, August 29th. Piper Sandler cut their target price on shares of ProPetro from $18.00 to $15.00 and set an "overweight" rating on the stock in a report on Thursday, August 27th. Citigroup dropped their price target on shares of ProPetro from $20.00 to $16.00 and set a "buy" rating on the stock in a research note on Monday, August 3rd. Finally, Barclays decreased their target price on shares of ProPetro from $23.00 to $18.00 and set an "overweight" rating for the company in a research report on Wednesday, August 5th. Eight investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $15.78.

ProPetro Price Performance

The company has a debt-to-equity ratio of 0.80, a quick ratio of 4.00 and a current ratio of 4.09. The company's 50 day moving average price is $11.79 and its 200-day moving average price is $13.76. The company has a market cap of $1.29 billion, a price-to-earnings ratio of -95.50 and a beta of 0.77.

ProPetro (NYSE:PUMP - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.01) by ($0.06). The company had revenue of $305.81 million during the quarter, compared to the consensus estimate of $304.48 million. ProPetro had a negative net margin of 1.15% and a negative return on equity of 1.49%. ProPetro's quarterly revenue was down 6.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.07) EPS. On average, equities research analysts forecast that ProPetro Holding Corp. will post -0.1 earnings per share for the current fiscal year.

Insider Transactions at ProPetro

In related news, Director G Lawrence sold 35,831 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $11.16, for a total value of $399,873.96. Following the completion of the transaction, the director owned 28,181 shares of the company's stock, valued at approximately $314,499.96. This trade represents a 55.98% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Adam Muñoz sold 70,696 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $11.17, for a total value of $789,674.32. Following the completion of the sale, the chief operating officer owned 148,691 shares of the company's stock, valued at $1,660,878.47. The trade was a 32.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.55% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On ProPetro

A number of institutional investors have recently bought and sold shares of the business. Arlington Capital Management Inc. purchased a new stake in shares of ProPetro in the second quarter worth approximately $3,830,000. Engineers Gate Manager LP lifted its position in ProPetro by 477.9% in the 2nd quarter. Engineers Gate Manager LP now owns 297,809 shares of the company's stock worth $4,271,000 after buying an additional 246,278 shares in the last quarter. Squarepoint Ops LLC boosted its stake in shares of ProPetro by 80.9% during the 2nd quarter. Squarepoint Ops LLC now owns 622,179 shares of the company's stock valued at $8,922,000 after buying an additional 278,172 shares during the period. California State Teachers Retirement System grew its holdings in shares of ProPetro by 1,057.5% during the 2nd quarter. California State Teachers Retirement System now owns 1,606,854 shares of the company's stock valued at $23,042,000 after acquiring an additional 1,468,036 shares in the last quarter. Finally, Readystate Asset Management LP increased its stake in shares of ProPetro by 285.6% in the second quarter. Readystate Asset Management LP now owns 405,748 shares of the company's stock worth $5,818,000 after acquiring an additional 300,535 shares during the last quarter. 84.70% of the stock is currently owned by institutional investors and hedge funds.

About ProPetro

ProPetro Holding Corp. is an oilfield services company that provides completion and production services to exploration and production companies developing unconventional oil and natural gas wells. The company primarily serves customers in the Permian Basin, including the Midland and Delaware basins of West Texas and southeastern New Mexico.

Its principal services include hydraulic fracturing, which uses high-pressure fluid to stimulate wells, as well as wireline services used for well evaluation, perforating and other completion activities.

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