ProFrac (NASDAQ:ACDC) Stock Price Down 6.5% - Here's Why

Key Points

• ProFrac Holding Corp. (NASDAQ: ACDC) saw its stock price decline by 6.5%, trading as low as $7.66 on Friday, with a significant drop in trading volume by 72% compared to the average session.
• Analysts have mixed ratings on ProFrac, with Stifel Nicolaus lowering their price target to $6.00, while Piper Sandler set a neutral rating at $8.00, reflecting a consensus rating of "Hold" and an average price target of $6.50.
• Insider trading activity included a major shareholder purchasing 207,163 shares at an average price of $6.25, increasing their position in the company and indicating confidence despite the stock's decline.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) traded down 6.5% on Friday . The stock traded as low as $7.71 and last traded at $7.66. 195,817 shares changed hands during trading, a decline of 72% from the average session volume of 693,240 shares. The stock had previously closed at $8.19.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the stock. Stifel Nicolaus lowered their price objective on shares of ProFrac from $7.00 to $6.00 and set a "hold" rating on the stock in a research report on Tuesday, April 15th. Wall Street Zen raised ProFrac from a "sell" rating to a "hold" rating in a research report on Thursday, May 22nd. Piper Sandler began coverage on ProFrac in a research report on Monday, July 14th. They set a "neutral" rating and a $8.00 price objective for the company. Bank of America cut ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective for the company. in a research report on Wednesday, June 25th. Finally, Morgan Stanley cut their target price on shares of ProFrac from $7.00 to $5.00 and set an "underweight" rating for the company in a research report on Friday, May 16th. Three analysts have rated the stock with a sell rating and three have given a hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $6.50.

ProFrac Stock Performance

The firm has a market cap of $1.23 billion, a P/E ratio of -5.17 and a beta of 1.69. The stock's 50 day moving average is $7.97 and its two-hundred day moving average is $7.15. The company has a debt-to-equity ratio of 0.92, a current ratio of 0.98 and a quick ratio of 0.69.

ProFrac (NASDAQ:ACDC - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported ($0.11) earnings per share for the quarter, beating analysts' consensus estimates of ($0.31) by $0.20. ProFrac had a negative net margin of 10.72% and a negative return on equity of 11.85%. As a group, equities analysts predict that ProFrac Holding Corp. will post -0.5 EPS for the current year.

Insider Buying and Selling at ProFrac

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ACDC. Bridgeway Capital Management LLC boosted its position in ProFrac by 10.6% in the first quarter. Bridgeway Capital Management LLC now owns 1,167,180 shares of the company's stock valued at $8,859,000 after buying an additional 111,913 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of ProFrac by 2.0% during the first quarter. Empowered Funds LLC now owns 594,680 shares of the company's stock valued at $4,514,000 after purchasing an additional 11,913 shares during the period. Geode Capital Management LLC raised its holdings 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 acquiring an additional 2,893 shares during the last quarter. American Century Companies Inc. grew its position in shares of ProFrac by 10.4% during the 1st quarter. American Century Companies Inc. now owns 583,820 shares of the company's stock valued at $4,431,000 after acquiring an additional 54,908 shares during the period. Finally, Wells Fargo & Company MN boosted its holdings in ProFrac by 52.0% in the 4th quarter. Wells Fargo & Company MN now owns 426,898 shares of the company's stock worth $3,313,000 after buying an additional 146,028 shares during the period. 12.75% of the stock is owned by 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.

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