ProFrac (NASDAQ:ACDC) Announces Quarterly Earnings Results

Key Points

• ProFrac reported a quarterly earnings per share (EPS) of ($0.67), significantly missing the consensus estimate of ($0.29), with revenue of $501.90 million compared to expectations of $532.93 million.
• Bank of America downgraded ProFrac from a "neutral" to an "underperform" rating, setting a new price target of $6.50, while other analysts have varied ratings with a consensus target price of $6.50.
• Insider activity includes significant purchases, with a major shareholder acquiring 390,253 shares and an increase in ownership by 22.39% from the company’s chairman.

ProFrac (NASDAQ:ACDC - Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.67) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.29) by ($0.38), Zacks reports. The company had revenue of $501.90 million during the quarter, compared to analyst estimates of $532.93 million. ProFrac had a negative return on equity of 11.85% and a negative net margin of 10.72%.

ProFrac Price Performance

ACDC stock traded up $0.19 during trading on Friday, hitting $6.31. 548,727 shares of the stock traded hands, compared to its average volume of 676,005. ProFrac has a one year low of $3.83 and a one year high of $10.70. The stock has a market cap of $1.01 billion, a price-to-earnings ratio of -4.23 and a beta of 1.67. The company has a 50 day simple moving average of $8.07 and a 200 day simple moving average of $7.07. The company has a current ratio of 0.98, a quick ratio of 0.69 and a debt-to-equity ratio of 0.92.

Analysts Set New Price Targets

A number of equities analysts have recently commented on ACDC shares. Bank of America downgraded shares of ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective for the company. in a report on Wednesday, June 25th. Piper Sandler started coverage on shares of ProFrac in a report on Monday, July 14th. They set a "neutral" rating and a $8.00 price objective for the company. Wall Street Zen raised shares of ProFrac from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. Morgan Stanley reduced their price objective on shares of ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, May 16th. Finally, Stifel Nicolaus reduced their price objective on shares of ProFrac from $7.00 to $6.00 and set a "hold" rating for the company in a report on Tuesday, April 15th. Three investment analysts have rated the stock with a sell rating and three have issued a hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $6.50.

Insider Activity

In other news, major shareholder Holdings Lp Thrc purchased 390,253 shares of the business's stock in a transaction that occurred on Thursday, May 15th. The stock was purchased at an average cost of $6.10 per share, with a total value of $2,380,543.30. Following the acquisition, the insider directly owned 79,648,695 shares of the company's stock, valued at approximately $485,857,039.50. This trade represents a 0.49% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Chairman Matthew Wilks purchased 69,176 shares of the business's stock in a transaction that occurred on Monday, May 12th. The shares were purchased at an average cost of $4.85 per share, with a total value of $335,503.60. Following the completion of the acquisition, the chairman directly owned 378,153 shares in the company, valued at $1,834,042.05. The trade was a 22.39% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased a total of 713,775 shares of company stock valued at $4,269,605 over the last three months. 2.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ProFrac

A hedge fund recently bought a new stake in ProFrac stock. Creative Planning bought a new position in ProFrac Holding Corp. (NASDAQ:ACDC - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 13,120 shares of the company's stock, valued at approximately $102,000. 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.

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