ProFrac Holding Corp. (NASDAQ:ACDC) Short Interest Update

Key Points

• ProFrac Holding Corp. (NASDAQ:ACDC) experienced a dramatic 34.6% decrease in short interest during August, with a total of approximately 2.78 million shares shorted as of August 15th.
• Wall Street analysts have expressed negative sentiment towards the stock, with three analysts assigning "Sell" ratings and the average price target set at $6.10.
• Insider buying activity was notable, as major shareholder Holdings Lp Thrc purchased 2.5 million shares at an average price of $4.00, increasing their ownership in the company.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) saw a significant drop in short interest in the month of August. As of August 15th, there was short interest totaling 2,780,000 shares, a drop of 34.6% from the July 31st total of 4,250,000 shares. Based on an average daily volume of 1,200,000 shares, the days-to-cover ratio is presently 2.3 days. Based on an average daily volume of 1,200,000 shares, the days-to-cover ratio is presently 2.3 days.

Insider Transactions at ProFrac

In other news, major shareholder Holdings Lp Thrc bought 2,500,000 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The shares were acquired at an average price of $4.00 per share, with a total value of $10,000,000.00. Following the transaction, the insider owned 82,389,657 shares in the company, valued at $329,558,628. This represents a 3.13% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Matthew Wilks bought 43,297 shares of the company's stock in a transaction that occurred on Monday, September 8th. The stock was purchased at an average cost of $3.80 per share, for a total transaction of $164,528.60. Following the transaction, the chairman owned 422,097 shares in the company, valued at $1,603,968.60. The trade was a 11.43% increase in their position. The disclosure for this purchase can be found here. Company insiders own 2.84% of the company's stock.

Institutional Trading of ProFrac

Hedge funds have recently added to or reduced their stakes in the company. Quantinno Capital Management LP raised its holdings in shares of ProFrac by 11.3% during the 4th quarter. Quantinno Capital Management LP now owns 16,387 shares of the company's stock worth $127,000 after buying an additional 1,670 shares in the last quarter. Dimensional Fund Advisors LP grew its position in ProFrac by 2.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 90,939 shares of the company's stock worth $706,000 after acquiring an additional 1,860 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in ProFrac by 7,241.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock worth $27,000 after acquiring an additional 3,476 shares during the last quarter. Farther Finance Advisors LLC bought a new stake in ProFrac during the 2nd quarter worth $29,000. Finally, Raymond James Financial Inc. bought a new stake in ProFrac during the 2nd quarter worth $29,000. 12.75% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on ACDC shares. Piper Sandler dropped their target price on ProFrac from $8.00 to $6.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 20th. Bank of America downgraded ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price target for the company. in a research note on Wednesday, June 25th. Morgan Stanley decreased their price target on ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a research note on Friday, May 16th. Finally, Wall Street Zen downgraded ProFrac from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Two investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Strong Sell" and an average target price of $6.10.

ProFrac Stock Performance

NASDAQ:ACDC traded down $0.09 during mid-day trading on Friday, hitting $3.82. 533,921 shares of the stock were exchanged, compared to its average volume of 899,167. The stock has a market capitalization of $611.47 million, a price-to-earnings ratio of -2.19 and a beta of 1.64. The firm's 50-day simple moving average is $5.84 and its 200 day simple moving average is $6.44. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.62 and a current ratio of 0.91. ProFrac has a fifty-two week low of $3.43 and a fifty-two week high of $10.70.

ProFrac (NASDAQ:ACDC - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.67) earnings per share for the quarter, missing the consensus estimate of ($0.29) by ($0.38). The firm had revenue of $501.90 million for the quarter, compared to analyst estimates of $532.93 million. ProFrac had a negative return on equity of 22.78% and a negative net margin of 12.89%. As a group, equities analysts anticipate that ProFrac will post -0.5 EPS for the current fiscal year.

ProFrac Company Profile

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.