Wall Street Zen Downgrades ProFrac (NASDAQ:ACDC) to Sell

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.

ACDC has been the topic of a number of other reports. Bank of America downgraded shares of ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price target on the stock. in a research note on Wednesday, June 25th. Stifel Nicolaus lowered their price target on shares of ProFrac from $7.00 to $6.00 and set a "hold" rating for the company in a report on Tuesday, April 15th. Morgan Stanley lowered their target price on shares of ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, May 16th. Finally, Piper Sandler initiated coverage on shares of ProFrac in a report on Monday, July 14th. They issued a "neutral" rating and a $8.00 target price for the company. Four investment analysts have rated the stock with a sell rating and two have issued a hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and a consensus target price of $6.50.

ProFrac Stock Performance

Shares of ProFrac stock traded up $0.22 during trading on Friday, hitting $6.31. 435,205 shares of the company's stock were exchanged, compared to its average volume of 672,790. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.62 and a current ratio of 0.91. The business has a 50-day simple moving average of $8.00 and a 200-day simple moving average of $7.01. ProFrac has a 52-week low of $3.83 and a 52-week high of $10.70. The stock has a market capitalization of $1.01 billion, a price-to-earnings ratio of -3.63 and a beta of 1.67.

ProFrac (NASDAQ:ACDC - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.67) EPS for the quarter, missing the consensus estimate 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 firm had revenue of $501.90 million for the quarter, compared to analyst estimates of $532.93 million. On average, research analysts forecast that ProFrac will post -0.5 EPS for the current year.

Insider Activity

In other news, major shareholder Holdings Lp Thrc purchased 207,163 shares of the firm's stock in a transaction on Friday, May 16th. The shares were bought at an average cost of $6.25 per share, with a total value of $1,294,768.75. Following the purchase, the insider directly owned 79,855,858 shares of the company's stock, valued at approximately $499,099,112.50. This trade represents a 0.26% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last 90 days, insiders have bought 621,000 shares of company stock worth $3,819,646. 2.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On ProFrac

Hedge funds have recently modified their holdings of the company. Quantinno Capital Management LP lifted its holdings in shares of ProFrac by 11.3% during the 4th quarter. Quantinno Capital Management LP now owns 16,387 shares of the company's stock worth $127,000 after acquiring an additional 1,670 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of ProFrac by 2.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 90,939 shares of the company's stock worth $706,000 after acquiring an additional 1,860 shares during the period. Geode Capital Management LLC lifted its holdings in shares of ProFrac by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 591,501 shares of the company's stock worth $4,591,000 after acquiring an additional 2,893 shares during the period. Farther Finance Advisors LLC purchased a new position in shares of ProFrac during the 2nd quarter worth about $29,000. Finally, Barclays PLC lifted its holdings in shares of ProFrac by 14.4% during the 4th quarter. Barclays PLC now owns 33,409 shares of the company's stock worth $259,000 after acquiring an additional 4,194 shares during the period. 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.