ProFrac (NASDAQ:ACDC) Shares Gap Up After 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.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report)'s stock price gapped up before the market opened on Wednesday after an insider bought additional shares in the company. 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 changing hands.

Specifically, Chairman Matthew Wilks purchased 43,297 shares of ProFrac stock in a transaction that occurred on Monday, September 8th. The shares were acquired at an average price of $3.80 per share, for a total transaction of $164,528.60. Following the transaction, the chairman owned 422,097 shares of the company's stock, valued at approximately $1,603,968.60. The trade was a 11.43% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link.

Analyst Upgrades and Downgrades

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

ProFrac Stock Down 0.4%

The stock's fifty day moving average is $5.77 and its two-hundred day moving average is $6.41. The company has a current ratio of 0.91, a quick ratio of 0.62 and a debt-to-equity ratio of 1.00. The firm has a market cap of $598.81 million, a P/E ratio of -2.15 and a beta of 1.65.

ProFrac (NASDAQ:ACDC - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.67) earnings per share for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.38). The firm had revenue of $501.90 million for the quarter, compared to the consensus estimate of $532.93 million. ProFrac had a negative return on equity of 22.78% and a negative net margin of 12.89%. As a group, research analysts anticipate that ProFrac Holding Corp. will post -0.5 earnings per share for the current year.

Hedge Funds Weigh In On ProFrac

A number of institutional investors have recently made changes to their positions in ACDC. Ameriprise Financial Inc. increased its holdings in shares of ProFrac by 36.2% in the 4th quarter. Ameriprise Financial Inc. now owns 148,760 shares of the company's stock worth $1,154,000 after buying an additional 39,560 shares during the last quarter. BNP Paribas Financial Markets purchased a new stake in shares of ProFrac in the 4th quarter worth about $469,000. Quantinno Capital Management LP lifted its position in shares of ProFrac by 11.3% in the 4th quarter. Quantinno Capital Management LP now owns 16,387 shares of the company's stock worth $127,000 after purchasing an additional 1,670 shares during the period. GAMMA Investing LLC lifted its position in shares of ProFrac by 689.6% in the 1st quarter. GAMMA Investing LLC now owns 45,396 shares of the company's stock worth $345,000 after purchasing an additional 39,647 shares during the period. Finally, Exchange Traded Concepts LLC lifted its position in shares of ProFrac by 1,258.8% in the 1st quarter. Exchange Traded Concepts LLC now owns 10,164 shares of the company's stock worth $77,000 after purchasing an additional 9,416 shares during the period. 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.