ProFrac (NASDAQ:ACDC) Shares Gap Down on Disappointing Earnings

Key Points

• ProFrac shares fell sharply after the company reported quarterly EPS of $(0.44), missing the $(0.30) analyst consensus; the stock opened at $3.59 versus a prior close of $4.51.
• Revenue of $498.1 million exceeded estimates of $483.81 million, but ProFrac reported a negative net margin of 24.25% and negative return on equity of 44.39%.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $5.50; institutional investors own 12.75% of the company.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report)'s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $4.51, but opened at $3.59. ProFrac shares last traded at $4.1860, with a volume of 584,632 shares trading hands.

The company reported ($0.44) EPS for the quarter, missing the consensus estimate of ($0.30) by ($0.14). ProFrac had a negative net margin of 24.25% and a negative return on equity of 44.39%. The business had revenue of $498.10 million during the quarter, compared to analyst estimates of $483.81 million.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Morgan Stanley set a $5.00 price target on shares of ProFrac in a research note on Wednesday, July 15th. Weiss Ratings restated a "sell (d-)" rating on shares of ProFrac in a research report on Wednesday, June 24th. Wall Street Zen cut shares of ProFrac from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Finally, Piper Sandler boosted their price target on ProFrac from $5.00 to $6.00 and gave the company a "neutral" rating in a report on Monday, May 18th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Reduce" and an average price target of $5.50.

Institutional Trading of ProFrac

A number of institutional investors have recently modified their holdings of ACDC. Creative Planning acquired a new stake in ProFrac during the 2nd quarter worth approximately $102,000. JPMorgan Chase & Co. lifted its position in ProFrac by 818.7% during the second quarter. JPMorgan Chase & Co. now owns 101,191 shares of the company's stock valued at $785,000 after buying an additional 90,176 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in ProFrac by 7,241.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock worth $27,000 after buying an additional 3,476 shares during the period. First Trust Advisors LP purchased a new stake in ProFrac during the second quarter worth approximately $553,000. Finally, Sei Investments Co. increased its position in shares of ProFrac by 17.7% in the second quarter. Sei Investments Co. now owns 41,305 shares of the company's stock worth $321,000 after acquiring an additional 6,200 shares in the last quarter. Hedge funds and other institutional investors own 12.75% of the company's stock.

ProFrac Stock Down 3.1%

The firm's 50-day moving average price is $5.56 and its 200-day moving average price is $5.90. The company has a debt-to-equity ratio of 1.27, a current ratio of 0.82 and a quick ratio of 0.58. The company has a market cap of $790.26 million, a price-to-earnings ratio of -1.70 and a beta of 1.46.

About ProFrac

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. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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