ProFrac (NASDAQ:ACDC) Hits New 12-Month Low - Here's What Happened

Key Points

• ProFrac Holding Corp. (NADSAQ:ACDC) hit a new 52-week low of $3.67, with shares last trading at $3.79, down from a previous close of $6.32.
• Brokerages have significantly lowered price targets for ProFrac, with Morgan Stanley setting a new objective of $5.00 and multiple analysts recommending a "sell" rating.
• The company reported a loss of ($0.67) earnings per share for the last quarter, missing estimates and revealing a negative net margin of 12.89%.

Shares of ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $3.67 and last traded at $3.79, with a volume of 5310760 shares traded. The stock had previously closed at $6.32.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on ACDC. Morgan Stanley reduced their price objective on ProFrac from $7.00 to $5.00 and set an "underweight" rating on the stock in a research note on Friday, May 16th. Stifel Nicolaus reduced their price objective on ProFrac from $7.00 to $6.00 and set a "hold" rating on the stock in a research note on Tuesday, April 15th. Bank of America cut ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective on the stock. in a research note on Wednesday, June 25th. Piper Sandler started coverage on ProFrac in a research note on Monday, July 14th. They issued a "neutral" rating and a $8.00 target price on the stock. Finally, Wall Street Zen lowered shares of ProFrac from a "hold" rating to a "sell" rating in a report on Saturday. Four investment analysts have rated the stock with a sell rating and two have assigned a hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $6.50.

ProFrac Trading Down 41.7%

The company has a quick ratio of 0.62, a current ratio of 0.91 and a debt-to-equity ratio of 1.00. The firm has a market cap of $590.26 million, a P/E ratio of -2.15 and a beta of 1.67. The company's 50 day simple moving average is $7.96 and its 200-day simple moving average is $7.00.

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

Insiders Place Their Bets

In related news, major shareholder Holdings Lp Thrc acquired 207,163 shares of the company's stock in a transaction dated Friday, May 16th. The shares were purchased at an average cost of $6.25 per share, with a total value of $1,294,768.75. Following the completion of the acquisition, the insider directly owned 79,855,858 shares of the company's stock, valued at $499,099,112.50. This represents a 0.26% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 2.84% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ACDC. Farther Finance Advisors LLC purchased a new stake in ProFrac during the 2nd quarter valued at about $29,000. Exchange Traded Concepts LLC grew its stake in ProFrac by 1,258.8% during the 1st quarter. Exchange Traded Concepts LLC now owns 10,164 shares of the company's stock valued at $77,000 after acquiring an additional 9,416 shares in the last quarter. Walleye Capital LLC purchased a new stake in ProFrac during the 1st quarter valued at about $97,000. Creative Planning purchased a new stake in shares of ProFrac in the 2nd quarter valued at approximately $102,000. Finally, Drive Wealth Management LLC purchased a new stake in shares of ProFrac in the 2nd quarter valued at approximately $111,000. Institutional investors and hedge funds own 12.75% of the company's stock.

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.

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