ProFrac (NASDAQ:ACDC) Shares Gap Down - Should You Sell?

Key Points

• Shares of ProFrac (NASDAQ:ACDC) gapped down, opening at $5.73 from a $6.22 close and trading around $5.92 on heavy volume, roughly near the consensus price target of $5.63.
• Analysts are mixed — the stock has 1 Buy, 3 Hold and 3 Sell ratings and a MarketBeat consensus of Reduce, with recent notable calls including Zacks moving to Hold and Morgan Stanley trimming its price target to $5 while keeping an underweight rating.
• Fundamentals show risk: last quarter EPS of -$0.51 missed estimates (vs. -$0.44) despite revenue beating expectations, and the company remains unprofitable with negative ROE/net margin and a debt/equity of 1.08.

Shares of ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $6.22, but opened at $5.73. ProFrac shares last traded at $5.9220, with a volume of 706,818 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts have commented on ACDC shares. Zacks Research raised shares of ProFrac from a "strong sell" rating to a "hold" rating in a research report on Wednesday, January 21st. Morgan Stanley raised their price target on shares of ProFrac from $4.00 to $5.00 and gave the company an "underweight" rating in a research report on Tuesday, March 24th. Weiss Ratings reissued a "sell (d-)" rating on shares of ProFrac in a research report on Friday, March 27th. Wall Street Zen raised shares of ProFrac from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, UBS Group reissued a "positive" rating on shares of ProFrac in a research report on Thursday, March 12th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $5.63.

ProFrac Trading Down 3.1%

The firm has a market capitalization of $1.09 billion, a PE ratio of -2.74 and a beta of 1.44. The company's 50-day moving average price is $5.72 and its 200-day moving average price is $4.69. The company has a debt-to-equity ratio of 1.08, a quick ratio of 0.56 and a current ratio of 0.81.

ProFrac (NASDAQ:ACDC - Get Free Report) last released its quarterly earnings data on Friday, March 13th. The company reported ($0.51) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.44) by ($0.07). The firm had revenue of $436.50 million for the quarter, compared to analysts' expectations of $402.95 million. ProFrac had a negative return on equity of 33.18% and a negative net margin of 18.97%. On average, sell-side analysts expect that ProFrac Holding Corp. will post -0.5 earnings per share for the current year.

Institutional Investors Weigh In On ProFrac

Institutional investors have recently modified their holdings of the company. EverSource Wealth Advisors LLC lifted its position in ProFrac by 7,241.7% in 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 during the last quarter. Raymond James Financial Inc. purchased a new stake in ProFrac in the second quarter valued at $29,000. Caitong International Asset Management Co. Ltd purchased a new stake in ProFrac in the third quarter valued at $45,000. Price T Rowe Associates Inc. MD purchased a new stake in ProFrac in the fourth quarter valued at $46,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in ProFrac in the fourth quarter valued at $47,000. 12.75% of the stock is owned by hedge funds and other institutional investors.

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

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