ProFrac (NASDAQ:ACDC) Trading Up 4.9% - Still a Buy?

Key Points

• ProFrac Holding Corp. (NASDAQ: ACDC) saw its shares increase by 4.9% to a last traded price of $8.10, although trading volume was down significantly by 93% from the average.
• Several analysts have reduced their price targets for ProFrac, with the average target now set at $6.50 and ratings indicating mixed sentiment with three sell ratings and three hold ratings.
• Major shareholders have shown confidence in the company, with significant insider purchases occurring recently, including a major shareholder acquiring over 207,000 shares valued at approximately $1.29 million.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) shares shot up 4.9% during trading on Monday . The company traded as high as $8.09 and last traded at $8.10. 46,424 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 689,642 shares. The stock had previously closed at $7.72.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on ACDC. Stifel Nicolaus reduced their target price on ProFrac from $7.00 to $6.00 and set a "hold" rating on the stock in a research note on Tuesday, April 15th. Morgan Stanley dropped their target price on shares of ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a report on Friday, May 16th. Bank of America lowered shares of ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 target price for the company. in a report on Wednesday, June 25th. Piper Sandler initiated coverage on shares of ProFrac in a report on Monday, July 14th. They set a "neutral" rating and a $8.00 target price for the company. Finally, Wall Street Zen upgraded shares of ProFrac from a "sell" rating to a "hold" rating in a report on Thursday, May 22nd. Three research analysts have rated the stock with a sell rating and three have given a hold rating to the company. According to MarketBeat.com, ProFrac presently has a consensus rating of "Hold" and a consensus target price of $6.50.

ProFrac Stock Down 7.1%

The company has a quick ratio of 0.69, a current ratio of 0.98 and a debt-to-equity ratio of 0.92. The company's fifty day simple moving average is $8.13 and its 200 day simple moving average is $7.15. The firm has a market capitalization of $1.04 billion, a PE ratio of -4.38 and a beta of 1.69.

ProFrac (NASDAQ:ACDC - Get Free Report) last issued its quarterly earnings data on Wednesday, May 7th. The company reported ($0.11) EPS for the quarter, topping the consensus estimate of ($0.31) by $0.20. ProFrac had a negative net margin of 10.72% and a negative return on equity of 11.85%. Analysts anticipate that ProFrac Holding Corp. will post -0.5 earnings per share for the current fiscal year.

Insider Activity

In related news, major shareholder Holdings Lp Thrc acquired 207,163 shares of the stock in a transaction on Friday, May 16th. The stock was acquired at an average cost of $6.25 per share, for a total transaction of $1,294,768.75. Following the completion of the acquisition, the insider directly owned 79,855,858 shares of the company's stock, valued at approximately $499,099,112.50. This represents a 0.26% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Matthew Wilks bought 69,176 shares of the stock in a transaction dated Monday, May 12th. The shares were acquired at an average price of $4.85 per share, with a total value of $335,503.60. Following the completion of the acquisition, the chairman directly owned 378,153 shares of the company's stock, valued at approximately $1,834,042.05. The trade was a 22.39% increase in their position. The disclosure for this purchase can be found here. Insiders acquired 733,996 shares of company stock valued at $4,356,960 over the last 90 days. 2.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ProFrac

Several large investors have recently made changes to their positions in ACDC. Farther Finance Advisors LLC purchased a new position in shares of ProFrac during the second quarter valued at approximately $29,000. Exchange Traded Concepts LLC increased its position in shares of ProFrac by 1,258.8% during the first quarter. Exchange Traded Concepts LLC now owns 10,164 shares of the company's stock valued at $77,000 after acquiring an additional 9,416 shares in the last quarter. HighTower Advisors LLC bought a new stake in shares of ProFrac during the fourth quarter valued at approximately $85,000. Walleye Capital LLC bought a new stake in shares of ProFrac during the first quarter valued at approximately $97,000. Finally, Deutsche Bank AG increased its position in shares of ProFrac by 64.7% during the first quarter. Deutsche Bank AG now owns 14,680 shares of the company's stock valued at $111,000 after acquiring an additional 5,767 shares in the last quarter. 12.75% of the stock is currently owned by hedge funds and other institutional investors.

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.