ProFrac (NASDAQ:ACDC) Shares Gap Up on Insider Buying Activity

Key Points

• ProFrac Holding Corp. shares gapped up from $3.68 to $3.86 following insider buying activity, with Chairman Matthew Wilks purchasing 43,297 shares at an average price of $3.80.
• Recent analyst reports have resulted in multiple downgrades for ProFrac, with an average rating of "Strong Sell" and a price target of $6.10.
• In the latest quarterly earnings, ProFrac reported a loss of ($0.67) per share, significantly underperforming the market estimate of ($0.29), with revenues falling short of expectations as well.

Shares of ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) gapped up before the market opened on Wednesday following insider buying activity. The stock had previously closed at $3.68, but opened at $3.86. ProFrac shares last traded at $3.87, with a volume of 428,011 shares.

Specifically, Chairman Matthew Wilks acquired 43,297 shares of the stock in a transaction dated Monday, September 8th. The shares were acquired at an average price of $3.80 per share, with a total value of $164,528.60. Following the acquisition, the chairman owned 422,097 shares in the company, valued at approximately $1,603,968.60. The trade was a 11.43% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link.

Analyst Upgrades and Downgrades

ACDC has been the topic of a number of research analyst reports. Wall Street Zen lowered ProFrac from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Bank of America downgraded ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 target price for the company. in a research report on Wednesday, June 25th. Piper Sandler cut their price objective on ProFrac from $8.00 to $6.00 and set a "neutral" rating for the company in a research report on Wednesday, August 20th. Finally, Morgan Stanley cut their price objective on ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a research report on Friday, May 16th. Two investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, ProFrac currently has an average rating of "Strong Sell" and an average price target of $6.10.

ProFrac Stock Up 5.0%

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 company has a market capitalization of $619.48 million, a price-to-earnings ratio of -2.22 and a beta of 1.64. The firm has a 50-day moving average price of $5.98 and a two-hundred day moving average price of $6.48.

ProFrac (NASDAQ:ACDC - Get Free Report) last issued 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 company had revenue of $501.90 million for the quarter, compared to analyst estimates of $532.93 million. As a group, sell-side analysts anticipate that ProFrac Holding Corp. will post -0.5 earnings per share for the current fiscal year.

Hedge Funds Weigh In On ProFrac

Hedge funds have recently added to or reduced their stakes in the stock. EverSource Wealth Advisors LLC increased its stake in ProFrac by 7,241.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock worth $27,000 after acquiring an additional 3,476 shares during the period. Farther Finance Advisors LLC acquired a new stake in shares of ProFrac during the 2nd quarter valued at $29,000. Raymond James Financial Inc. acquired a new stake in shares of ProFrac during the 2nd quarter valued at $29,000. BNP Paribas Financial Markets boosted its holdings in shares of ProFrac by 389.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 6,122 shares of the company's stock valued at $48,000 after acquiring an additional 4,871 shares in the last quarter. Finally, Exchange Traded Concepts LLC lifted its holdings in ProFrac by 1,258.8% during the 1st quarter. Exchange Traded Concepts LLC now owns 10,164 shares of the company's stock worth $77,000 after buying an additional 9,416 shares during the period. Institutional investors own 12.75% of the company's stock.

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.

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