ProFrac (NASDAQ:ACDC) Shares Gap Up - Should You Buy?

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 prior to trading 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.

Analyst Upgrades and Downgrades

ACDC has been the subject of several research reports. Wall Street Zen lowered ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Piper Sandler initiated coverage on ProFrac in a research report on Monday, July 14th. They issued a "neutral" rating and a $8.00 target price for the company. Bank of America lowered 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. Finally, Morgan Stanley decreased their target price on ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a research report on Friday, May 16th. Four equities research analysts have rated the stock with a sell rating and two have given a hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $6.50.

ProFrac Stock Down 0.7%

The firm has a market cap of $577.44 million, a price-to-earnings ratio of -2.07 and a beta of 1.67. 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 stock has a 50-day moving average of $7.88 and a 200-day moving average of $6.98.

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

Insiders Place Their Bets

In other ProFrac news, major shareholder Holdings Lp Thrc bought 207,163 shares of the business's stock in a transaction on Friday, May 16th. The shares were purchased at an average price of $6.25 per share, with a total value of $1,294,768.75. Following the purchase, the insider directly owned 79,855,858 shares of the company's stock, valued at approximately $499,099,112.50. The trade was a 0.26% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. 2.84% of the stock is owned by insiders.

Institutional Trading of ProFrac

Several hedge funds have recently added to or reduced their stakes in the business. Quantinno Capital Management LP raised its stake in ProFrac by 11.3% during the 4th quarter. Quantinno Capital Management LP now owns 16,387 shares of the company's stock valued at $127,000 after acquiring an additional 1,670 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of ProFrac by 2.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 90,939 shares of the company's stock worth $706,000 after buying an additional 1,860 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of ProFrac by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 591,501 shares of the company's stock worth $4,591,000 after buying an additional 2,893 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of ProFrac by 7,241.7% in the 2nd 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 in the last quarter. Finally, Farther Finance Advisors LLC bought a new stake in shares of ProFrac in the 2nd quarter worth $29,000. 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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