ProFrac (NASDAQ:ACDC) Lowered to Sell Rating by Wall Street Zen

Key Points

• ProFrac was downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating a negative outlook for the stock.
• Morgan Stanley and Bank of America have also reduced their price targets for ProFrac, with Morgan Stanley setting a target of $5.00 and Bank of America at $6.50.
• The company's shares opened at $6.31, with a recent quarterly earnings report showing an EPS of ($0.67), which missed analysts' expectations.

Wall Street Zen downgraded shares of ProFrac (NASDAQ:ACDC - Free Report) from a hold rating to a sell rating in a research report sent to investors on Saturday.

A number of other research analysts have also commented on ACDC. Stifel Nicolaus lowered their price target on ProFrac from $7.00 to $6.00 and set a "hold" rating for the company in a research report on Tuesday, April 15th. Morgan Stanley reduced their target price on ProFrac from $7.00 to $5.00 and set an "underweight" rating on the stock in a report on Friday, May 16th. Piper Sandler assumed coverage on ProFrac in a report on Monday, July 14th. They set a "neutral" rating and a $8.00 target price on the stock. Finally, Bank of America downgraded ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 target price on the stock. in a report on Wednesday, June 25th. 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, the stock currently has an average rating of "Reduce" and a consensus price target of $6.50.

ProFrac Price Performance

ACDC stock traded down $2.58 during mid-day trading on Friday, hitting $3.75. 7,736,800 shares of the stock were exchanged, compared to its average volume of 719,360. The company has a debt-to-equity ratio of 1.00, a current ratio of 0.91 and a quick ratio of 0.62. The business has a fifty day moving average price of $7.96 and a 200 day moving average price of $7.00. ProFrac has a 12 month low of $3.67 and a 12 month high of $10.70. The stock has a market capitalization of $599.87 million, a price-to-earnings ratio of -2.16 and a beta of 1.67.

ProFrac (NASDAQ:ACDC - Get Free Report) last released 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). ProFrac had a negative net margin of 12.89% and a negative return on equity of 22.78%. The company had revenue of $501.90 million during the quarter, compared to the consensus estimate of $532.93 million. On average, sell-side analysts anticipate that ProFrac will post -0.5 EPS for the current year.

Insider Activity

In other news, major shareholder Holdings Lp Thrc acquired 207,163 shares of the business's stock in a transaction that occurred on Friday, May 16th. The stock was bought at an average price 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 approximately $499,099,112.50. The trade was a 0.26% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 2.84% of the stock is currently owned by insiders.

Institutional Trading of ProFrac

Large investors have recently modified their holdings of the company. BNP Paribas Financial Markets bought a new stake in shares of ProFrac in the fourth quarter worth $469,000. Ameriprise Financial Inc. lifted its position in ProFrac by 36.2% during the fourth quarter. Ameriprise Financial Inc. now owns 148,760 shares of the company's stock valued at $1,154,000 after purchasing an additional 39,560 shares in the last quarter. GAMMA Investing LLC lifted its position in ProFrac by 689.6% during the first quarter. GAMMA Investing LLC now owns 45,396 shares of the company's stock valued at $345,000 after purchasing an additional 39,647 shares in the last quarter. Wells Fargo & Company MN lifted its position in ProFrac by 52.0% during the fourth quarter. Wells Fargo & Company MN now owns 426,898 shares of the company's stock valued at $3,313,000 after purchasing an additional 146,028 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC purchased a new position in ProFrac during the fourth quarter valued at $223,000. Institutional investors 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.