ProFrac (NASDAQ:ACDC) Sees Unusually-High Trading Volume - Here's Why

Key Points

• ProFrac Holding Corp. (NASDAQ:ACDC) experienced a trading volume of 742,093 shares, down 7% from the previous session, with the stock currently priced at $3.55.
• Several analysts have recently downgraded ProFrac, with Morgan Stanley lowering its price target from $7.00 to $5.00 and setting an "underweight" rating.
• The company reported a loss of $0.67 per share for the last quarter, significantly missing analysts' estimates and raising concerns over its financial performance.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) saw strong trading volume on Friday . 742,093 shares changed hands during trading, a decline of 7% from the previous session's volume of 794,752 shares.The stock last traded at $3.55 and had previously closed at $3.51.

Wall Street Analyst Weigh In

Several research analysts have weighed in on ACDC shares. Morgan Stanley lowered their target price on shares of ProFrac from $7.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, May 16th. Wall Street Zen lowered ProFrac from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Piper Sandler assumed coverage on ProFrac in a research report on Monday, July 14th. They issued a "neutral" rating and a $8.00 price target for the company. Finally, 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. Two investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Strong Sell" and an average price target of $6.50.

ProFrac Price Performance

The company has a fifty day simple moving average of $7.46 and a two-hundred day simple moving average of $6.87. 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 company has a market capitalization of $633.11 million, a price-to-earnings ratio of -2.27 and a beta of 1.67.

ProFrac (NASDAQ:ACDC - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.67) EPS 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 business had revenue of $501.90 million during the quarter, compared to analysts' expectations of $532.93 million. As a group, research analysts anticipate that ProFrac Holding Corp. will post -0.5 earnings per share for the current year.

Insider Transactions at ProFrac

In related news, major shareholder Holdings Lp Thrc acquired 2,500,000 shares of the stock in a transaction dated Thursday, August 14th. The stock was bought at an average cost of $4.00 per share, with a total value of $10,000,000.00. Following the purchase, the insider directly owned 82,389,657 shares of the company's stock, valued at approximately $329,558,628. This represents a 3.13% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders own 2.84% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. Quantinno Capital Management LP boosted its stake in shares of ProFrac by 11.3% in the fourth quarter. Quantinno Capital Management LP now owns 16,387 shares of the company's stock valued at $127,000 after purchasing an additional 1,670 shares during the period. Dimensional Fund Advisors LP lifted its holdings in ProFrac by 2.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 90,939 shares of the company's stock worth $706,000 after buying an additional 1,860 shares in the last quarter. Geode Capital Management LLC boosted its position in ProFrac by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 591,501 shares of the company's stock valued at $4,591,000 after buying an additional 2,893 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of ProFrac by 7,241.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock valued at $27,000 after acquiring an additional 3,476 shares in the last quarter. Finally, Farther Finance Advisors LLC purchased a new stake in shares of ProFrac during the second quarter worth about $29,000. Hedge funds and other 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.