ProFrac (NASDAQ:ACDC) Shares Gap Up - Here's What Happened

Key Points

• ProFrac Holding Corp. (NASDAQ:ACDC) shares gapped up from $3.63 to $3.73 before trading, but last traded at $3.49 with a volume of over 1.2 million shares.
• The company recently received several analyst downgrades, with Wall Street Zen lowering its rating to "sell" and Bank of America dropping to "underperform" with a target price of $6.50.
• ProFrac reported earnings per share of ($0.67), significantly missing estimates, with revenue also falling short at $501.90 million against a consensus of $532.93 million.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) shares gapped up before the market opened on Thursday . The stock had previously closed at $3.63, but opened at $3.73. ProFrac shares last traded at $3.49, with a volume of 1,294,739 shares traded.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on ACDC shares. Bank of America lowered ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 target price on the stock. in a report on Wednesday, June 25th. Morgan Stanley decreased their target price on ProFrac from $7.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, May 16th. Piper Sandler assumed coverage on ProFrac in a research report on Monday, July 14th. They set a "neutral" rating and a $8.00 target price on the stock. Finally, Wall Street Zen downgraded ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. 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, the stock currently has a consensus rating of "Strong Sell" and an average target price of $6.50.

ProFrac Stock Up 1.0%

The firm has a 50 day simple moving average of $7.57 and a two-hundred day simple moving average of $6.89. 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 stock has a market cap of $623.49 million, a P/E ratio of -2.24 and a beta of 1.67.

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

Insider Buying and Selling

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

Hedge Funds Weigh In On ProFrac

Institutional investors have recently bought and sold shares of the business. Wells Fargo & Company MN raised its position in ProFrac by 52.0% during the 4th quarter. Wells Fargo & Company MN now owns 426,898 shares of the company's stock worth $3,313,000 after purchasing an additional 146,028 shares during the last quarter. Bridgeway Capital Management LLC boosted its stake in ProFrac by 10.6% during the 1st quarter. Bridgeway Capital Management LLC now owns 1,167,180 shares of the company's stock valued at $8,859,000 after purchasing an additional 111,913 shares during the last quarter. Mariner LLC lifted its position in shares of ProFrac by 184.2% during the 4th quarter. Mariner LLC now owns 146,429 shares of the company's stock worth $1,136,000 after buying an additional 94,902 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of ProFrac by 818.7% during the 2nd quarter. JPMorgan Chase & Co. now owns 101,191 shares of the company's stock worth $785,000 after buying an additional 90,176 shares in the last quarter. Finally, GSA Capital Partners LLP bought a new stake in shares of ProFrac in the 1st quarter worth approximately $548,000. Institutional investors and hedge funds 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.