ProFrac (NASDAQ:ACDC) Hits New 12-Month Low - Should You Sell?

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%.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday . The stock 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

Several equities analysts have issued reports on ACDC shares. Piper Sandler started coverage on shares of ProFrac in a research report on Monday, July 14th. They issued a "neutral" rating and a $8.00 price target for the company. Bank of America cut shares of 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. Morgan Stanley lowered their target price on ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a research report on Friday, May 16th. Finally, Wall Street Zen downgraded ProFrac from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Four research analysts have rated the stock with a sell rating and two have issued a hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $6.50.

ProFrac Stock Up 8.8%

The stock's 50-day moving average price is $7.67 and its 200-day moving average price is $6.91. The company has a current ratio of 0.91, a quick ratio of 0.62 and a debt-to-equity ratio of 1.00. The stock has a market cap of $617.08 million, a price-to-earnings ratio of -2.21 and a beta of 1.67.

ProFrac (NASDAQ:ACDC - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.67) earnings per share for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.38). The firm had revenue of $501.90 million for the quarter, compared to the consensus estimate of $532.93 million. ProFrac had a negative return on equity of 22.78% and a negative net margin of 12.89%. On average, sell-side analysts expect that ProFrac Holding Corp. will post -0.5 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Tower Research Capital LLC TRC lifted its stake in ProFrac by 822.3% in the second quarter. Tower Research Capital LLC TRC now owns 11,234 shares of the company's stock valued at $87,000 after buying an additional 10,016 shares during the period. Orion Porfolio Solutions LLC lifted its position in shares of ProFrac by 166.4% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 30,897 shares of the company's stock valued at $240,000 after acquiring an additional 19,301 shares during the period. BNP Paribas Financial Markets lifted its position in shares of ProFrac by 389.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 6,122 shares of the company's stock valued at $48,000 after acquiring an additional 4,871 shares during the period. Bridgeway Capital Management LLC boosted its stake in ProFrac by 2.8% during the second quarter. Bridgeway Capital Management LLC now owns 1,199,562 shares of the company's stock worth $9,309,000 after acquiring an additional 32,382 shares in the last quarter. Finally, Brevan Howard Capital Management LP bought a new stake in ProFrac in the second quarter valued at $179,000. 12.75% of the stock is owned by institutional investors and hedge funds.

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.