ProFrac (NASDAQ:ACDC) Announces 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) released its earnings results on Thursday. The company reported ($0.67) EPS for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.38), Zacks reports. ProFrac had a negative net margin of 12.89% and a negative return on equity of 22.78%. The firm had revenue of $501.90 million during the quarter, compared to analysts' expectations of $532.93 million.

ProFrac Stock Down 38.7%

NASDAQ:ACDC traded down $2.45 during trading hours on Wednesday, reaching $3.88. 6,722,686 shares of the company traded hands, compared to its average volume of 710,065. The stock has a market capitalization of $620.70 million, a P/E ratio of -2.22 and a beta of 1.67. The business's 50-day moving average price is $7.96 and its two-hundred day moving average price is $7.00. ProFrac has a 1 year low of $3.67 and a 1 year high of $10.70. The company has a current ratio of 0.91, a quick ratio of 0.62 and a debt-to-equity ratio of 1.00.

Analyst Ratings Changes

Several research firms recently weighed in on ACDC. Piper Sandler began coverage on ProFrac in a research report on Monday, July 14th. They set a "neutral" rating and a $8.00 price target on the stock. Wall Street Zen lowered ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday. Stifel Nicolaus dropped their price target on ProFrac from $7.00 to $6.00 and set a "hold" rating on the stock in a research report on Tuesday, April 15th. Morgan Stanley dropped their price target on ProFrac from $7.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, May 16th. Finally, Bank of America cut ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective for the company. in a research note on Wednesday, June 25th. Four analysts have rated the stock with a sell rating and two have given a hold rating to the company. According to MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $6.50.

Insider Activity at ProFrac

In other ProFrac news, major shareholder Holdings Lp Thrc bought 207,163 shares of ProFrac stock in a transaction on Friday, May 16th. The stock was acquired at an average price of $6.25 per share, with a total value of $1,294,768.75. Following the acquisition, the insider owned 79,855,858 shares in the company, valued at approximately $499,099,112.50. This trade represents a 0.26% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.84% of the company's stock.

Institutional Trading of ProFrac

A hedge fund recently raised its stake in ProFrac stock. JPMorgan Chase & Co. raised its position in ProFrac Holding Corp. (NASDAQ:ACDC - Free Report) by 818.7% during the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 101,191 shares of the company's stock after acquiring an additional 90,176 shares during the quarter. JPMorgan Chase & Co. owned approximately 0.06% of ProFrac worth $785,000 at the end of the most recent quarter. 12.75% of the stock is currently owned by institutional investors and hedge funds.

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.