ProFrac (NASDAQ:ACDC) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded ProFrac from “hold” to “sell,” while other analysts’ ratings leave the company with an average “Reduce” rating and a $5.25 price target.
• ProFrac shares were trading at $4.83, with a market capitalization of approximately $880 million and a one-year range of $3.08 to $8.22.
• Insiders purchased about 800,000 shares worth $4.0 million over the past 90 days, while institutional investors and hedge funds own 12.75% of the stock.

ProFrac (NASDAQ:ACDC - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Sunday.

Several other equities research analysts have also commented on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of ProFrac in a report on Wednesday, June 24th. Piper Sandler boosted their price target on ProFrac from $5.00 to $6.00 and gave the stock a "neutral" rating in a research report on Monday, May 18th. Finally, Morgan Stanley decreased their price objective on ProFrac from $5.00 to $4.50 and set an "underweight" rating for the company in a research note on Thursday. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $5.25.

ProFrac Trading Up 8.8%

ProFrac stock opened at $4.83 on Friday. ProFrac has a one year low of $3.08 and a one year high of $8.22. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.84 and a quick ratio of 0.59. The business's fifty day moving average is $5.05 and its 200 day moving average is $5.89. The stock has a market capitalization of $879.64 million, a PE ratio of -2.07 and a beta of 1.46.

Insider Activity

In other ProFrac news, major shareholder Dan H. Wilks purchased 517,669 shares of the firm's stock in a transaction on Monday, August 10th. The stock was bought at an average cost of $4.86 per share, for a total transaction of $2,515,871.34. Following the completion of the purchase, the insider owned 87,297,864 shares in the company, valued at $424,267,619.04. This represents a 0.60% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Matthew Wilks acquired 57,519 shares of the business's stock in a transaction dated Monday, August 10th. The shares were bought at an average price of $4.86 per share, for a total transaction of $279,542.34. Following the acquisition, the chief executive officer owned 479,616 shares of the company's stock, valued at approximately $2,330,933.76. This represents a 13.63% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 800,000 shares of company stock worth $4,018,391 over the last ninety days. 2.23% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On ProFrac

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC boosted its stake in shares of ProFrac by 7,241.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock worth $27,000 after buying an additional 3,476 shares during the last quarter. Raymond James Financial Inc. purchased a new position in ProFrac during the second quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd acquired a new position in ProFrac in the third quarter valued at approximately $45,000. Price T Rowe Associates Inc. MD acquired a new position in ProFrac in the fourth quarter valued at approximately $46,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in ProFrac in the 4th quarter worth approximately $47,000. 12.75% of the stock is 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. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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